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Home Values and Ownership in Independence, Missouri: A Decade of Growth and Harry Truman's Hometown
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
Independence, Missouri, a city known for its historical significance as the hometown of President Harry S. Truman, has experienced notable shifts in its housing market over the past decade. The city has seen fluctuations in homeownership rates, alongside significant increases in both average home prices and average rent prices. This analysis will explore these trends and their interrelationships.
The homeownership rate in Independence has shown moderate fluctuations between 2013 and 2022. In 2013, the homeownership rate stood at 60%, and by 2022, it had increased to 63%. During this period, average home prices in the city experienced substantial growth. In 2013, the average home price was $73,968, and by 2022, it had risen dramatically to $178,947, representing a 142% increase over nine years. This significant appreciation in home values may have contributed to the slight increase in homeownership rates, as existing homeowners benefited from growing equity.
Federal interest rates have played a role in shaping homeownership trends in Independence. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), the homeownership rate remained relatively stable around 59-60%. As interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), there was a slight increase in homeownership to 63% in 2018, possibly due to buyers rushing to secure mortgages before rates climbed further. The sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with an increase in homeownership to 64% in 2021, likely driven by more affordable financing options.
Renter percentages in Independence have generally mirrored the inverse of homeownership rates. In 2013, 40% of residents were renters, and this figure fluctuated between 36% and 42% over the next decade. Average rent prices have shown a steady upward trend during this period. In 2013, the average rent was $765, and by 2022, it had increased to $1,036, representing a 35.4% rise. This increase in rent prices, while significant, was not as dramatic as the rise in home prices, which may have influenced some residents to continue renting rather than transitioning to homeownership.
In 2023 and 2024, the housing market in Independence continued to evolve. The average home price in 2023 reached $190,014, a 6.2% increase from 2022. In 2024, it further rose to $197,627, showing a 4% year-over-year growth. Concurrently, federal interest rates climbed to 5.02% in 2023 and 5.33% in 2024, reaching levels not seen since 2007. These higher interest rates may impact affordability and potentially influence future homeownership rates.
Looking ahead, based on the observed trends, we can project that average home prices in Independence are likely to continue rising, albeit at a potentially slower rate due to higher interest rates. A conservative estimate suggests average home prices could reach around $220,000 to $230,000 by 2029. Average rent prices are also expected to increase, potentially reaching $1,200 to $1,300 per month in the next five years, assuming the current growth rate persists.
In summary, Independence has experienced significant growth in both average home prices and average rent prices over the past decade. Homeownership rates have remained relatively stable with slight increases, despite the substantial rise in home values. The interplay between federal interest rates, home prices, and rent costs has shaped the housing market dynamics in the city. As Independence moves forward, the balance between homeownership and renting will likely continue to be influenced by these economic factors, with potential for further increases in both home values and rental costs.
