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Holmes Park: Rising Home Values and Shifting Ownership in Kansas City's Dynamic Neighborhood
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
Holmes Park, a neighborhood in Kansas City, Missouri, has experienced significant changes in its housing market over the past decade. The area has seen a general trend of decreasing homeownership rates, rising average home prices, and fluctuating average rent prices. These shifts have reshaped the demographic composition and economic dynamics of the neighborhood.
The homeownership rate in Holmes Park has declined notably since 2015. In that year, homeownership peaked at 75%, but by 2022, it had decreased to 60%. This 15 percentage point drop coincided with a substantial increase in average home prices. The average home price rose from $174,462 in 2015 to $308,354 in 2022, representing a 76.7% increase over seven years. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents.
Federal interest rates have played a role in homeownership trends in Holmes Park. From 2015 to 2020, interest rates remained relatively low, ranging from 0.13% to 2.16%. During this period, homeownership rates fluctuated but generally remained above 60%. However, as interest rates began to rise sharply in 2022 (1.68%) and 2023 (5.02%), homeownership rates stabilized around 60%. This suggests that while low interest rates may have initially supported homeownership, the rapid price appreciation outpaced the benefits of low financing costs.
Renter percentages in Holmes Park have increased as homeownership rates declined. In 2015, only 25% of residents were renters, but by 2022, this figure had grown to 40%. Interestingly, average rent prices have not shown a consistent upward trend during this period. In 2015, the average rent was $1,122, and it fluctuated over the years, reaching $913 in 2022. This represents an 18.6% decrease in average rent prices over seven years, despite the increase in the renter population. The population growth from 1,314 in 2015 to 1,152 in 2022 may have influenced the rental market dynamics.
In 2023 and 2024, Holmes Park continued to see growth in average home prices. The average home price in 2023 was $321,513, a 4.3% increase from 2022. In 2024, it further increased to $337,077, representing a 4.8% rise from 2023. These increases occurred despite the federal interest rate climbing to 5.33% in 2024, indicating strong demand for housing in the area.
Looking ahead, predictive models suggest that average home prices in Holmes Park may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices, which have been more volatile, may stabilize or show modest increases as the rental market adjusts to the growing renter population and overall housing demand.
In summary, Holmes Park has experienced a shift towards a higher percentage of renters, driven by rapidly increasing average home prices that have outpaced changes in average rent prices. The neighborhood has shown resilience in its housing market, with continued price appreciation even in the face of rising interest rates. These trends suggest a dynamic and evolving housing landscape in Holmes Park, with implications for both current and future residents.
