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Hickman Mills South: Rising Home Values and Shifting Ownership Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Hickman Mills South, a suburban neighborhood in Kansas City, Missouri, has experienced significant changes in its real estate market over the past decade. This analysis focuses on the shifting trends in homeownership rates, property values, and rental market dynamics from 2013 to 2024. The neighborhood has witnessed a notable decline in homeownership rates, accompanied by a substantial increase in average home prices. Homeownership rates decreased from 80% in 2013 to 63% in 2022, while average home prices rose dramatically from $43,665 to $158,590 during the same period, representing a 263% increase. This inverse relationship suggests that rising property values may have made homeownership less accessible for some residents, potentially driving a shift towards renting.
Federal interest rates have played a crucial role in shaping homeownership trends in Hickman Mills South. From 2013 to 2016, historically low interest rates ranging from 0.1% to 0.4% corresponded with relatively stable homeownership rates between 80% and 68%. However, as interest rates began to climb from 2017 onwards, reaching 1.68% by 2022, homeownership rates continued to decline, reaching 63% in 2022. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging home purchases.
The renter population in Hickman Mills South has grown correspondingly with the decline in homeownership. The percentage of renters increased from 20% in 2013 to 37% in 2022. Average rent prices have also risen during this period, from $1,401 in 2013 to $1,304 in 2022. While there was some fluctuation in rent prices over the years, the overall trend shows an increase. This rise in both renter population and rent prices suggests a growing demand for rental properties in the area, possibly driven by those priced out of the homeownership market.
In 2023 and 2024, the real estate market in Hickman Mills South continued its upward trajectory. Average home prices reached $169,268 in 2023 and further increased to $174,798 in 2024, representing a 10.2% increase from 2022 to 2024. Federal interest rates also saw a significant rise, reaching 5.02% in 2023 and 5.33% in 2024, the highest levels in over a decade. These high interest rates could potentially impact future home buying activity in the neighborhood.
Based on the observed trends, projections suggest continued growth in average home prices for Hickman Mills South over the next five years. If the current trajectory holds, average home prices could potentially reach around $200,000 by 2029. Rent prices are also likely to continue their upward trend, potentially exceeding $1,500 per month within the same timeframe. However, these projections are subject to various economic factors and local market conditions.
In conclusion, Hickman Mills South has experienced a significant shift in its housing landscape over the past decade. The decline in homeownership rates, coupled with rising home prices and increasing rental demand, points to a changing demographic and economic profile of the neighborhood. The recent spike in interest rates adds another layer of complexity to the local real estate market, potentially influencing future homeownership trends and property values in this evolving Kansas City community.
