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Grandview, Missouri: Rising Home Values and Shifting Ownership Patterns in a Growing Suburban City
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Grandview, Missouri, a vibrant city located in Jackson County, has experienced dynamic shifts in its housing market over the past decade. This analysis explores the trends in homeownership, average home prices, and average rent prices in Grandview, offering insights into the city's evolving real estate landscape. Homeownership rates in Grandview have shown a gradual decline from 2013 to 2019, followed by a slight recovery. In 2013, 59% of residents were homeowners, but this figure decreased to 49% by 2019. However, there has been a modest rebound since then, with homeownership rates stabilizing at 50% in 2022. Concurrently, average home prices have experienced significant growth. In 2013, the average home price was $70,545, which has nearly tripled to $190,082 by 2022, representing a remarkable 169% increase over this period.
The relationship between federal interest rates and homeownership rates in Grandview shows an interesting pattern. As interest rates remained low between 2013 and 2016 (ranging from 0.11% to 0.40%), homeownership rates declined from 59% to 53%. This suggests that other factors, such as local economic conditions or housing supply, may have had a stronger influence on homeownership during this period. However, as interest rates began to rise more significantly from 2017 onwards, the decline in homeownership slowed and eventually stabilized, indicating a potential correlation between higher interest rates and a steadying of homeownership rates.
Renter percentages in Grandview have shown an inverse relationship to homeownership rates, increasing from 41% in 2013 to a peak of 51% in 2019, before settling at 50% in 2022. Average rent prices have also seen an upward trend, rising from $942 in 2013 to $989 in 2022, an increase of about 5%. It's worth noting that the population of Grandview has grown from 24,667 in 2013 to 25,921 in 2022, which may have contributed to the increased demand for rental properties and the subsequent rise in average rent prices.
In 2023 and 2024, Grandview's housing market continued its upward trajectory. The average home price reached $202,063 in 2023 and further increased to $211,892 in 2024, representing a 6.3% and 4.9% year-over-year growth, respectively. These price increases occurred despite federal interest rates rising to 5.02% in 2023 and 5.33% in 2024, suggesting strong local demand for housing in Grandview.
Looking ahead, predictive models suggest that Grandview's housing market will continue to grow, albeit at a potentially slower pace. Average home prices are projected to increase by approximately 3-4% annually over the next five years, potentially reaching around $250,000 by 2029. Average rent prices are expected to follow a similar trend, with projected annual increases of 2-3%, potentially reaching around $1,150 per month by 2029.
In summary, Grandview's housing market has shown remarkable growth in average home prices, a stabilization of homeownership rates after a period of decline, and steady increases in average rent prices. The city's growing population and resilient real estate market, even in the face of rising interest rates, suggest a strong foundation for continued growth in the coming years.
