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Home Values and Ownership in Zip Code 66061: A Decade of Growth in Olathe, Kansas
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
Zip code 66061, located in Olathe, Kansas, has shown significant growth and dynamic real estate trends over the past decade. This area has experienced a steady increase in population, rising from 52,427 in 2010 to 66,602 in 2022, reflecting a robust 27% growth. The ownership percentage and average home and rent prices have also shown notable changes during this period.
The homeownership rate in zip code 66061 has remained relatively stable, with a slight increase from 71% in 2016 to 75% in 2022. This trend coincides with a substantial rise in average home prices, which grew from $240,207 in 2016 to $372,230 in 2022, representing a 55% increase. The stability in homeownership despite rising prices suggests a strong local economy and continued demand for housing in the area.
Federal interest rates have played a significant role in homeownership trends. The period from 2010 to 2015 saw historically low interest rates, ranging from 0.09% to 0.18%. During this time, homeownership rates remained relatively stable at around 71-73%. As interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, homeownership rates actually increased slightly to 75%. This counterintuitive trend might be attributed to other local economic factors or a rush to purchase homes before rates increased further.
Renter percentages in zip code 66061 have shown a slight decrease, from 28% in 2014 to 25% in 2022. Concurrently, average rent prices have experienced significant growth, rising from $1,059 in 2014 to $1,212 in 2022, an increase of about 14.4%. This trend suggests that while fewer people are renting, those who do are paying considerably more. The population growth in the area may have contributed to the increased demand for rental properties, driving up prices despite a smaller percentage of renters.
In 2023 and 2024, the real estate market in zip code 66061 has continued to evolve. Average home prices have risen further, reaching $389,766 in 2023 and $399,930 in 2024. This represents a 7.5% increase from 2022 to 2024. Notably, federal interest rates have also increased significantly, climbing to 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homeownership rates and housing affordability in the area.
Looking ahead, based on the historical data and current trends, we can project potential 5-year trends for average home and rent prices in zip code 66061. Average home prices are likely to continue their upward trajectory, albeit potentially at a slower rate due to higher interest rates. A conservative estimate might see average home prices reaching around $450,000 to $475,000 by 2029. Average rent prices are also expected to increase, potentially reaching $1,400 to $1,500 per month in the same timeframe.
In summary, zip code 66061 has demonstrated a robust real estate market with increasing home values and rent prices. The area has maintained a strong homeownership rate despite rising prices, indicating a desirable location for residents. The recent sharp increase in interest rates may present new challenges for potential homebuyers, potentially affecting future homeownership rates and price growth. However, the consistent population growth and historical resilience of the local market suggest continued demand for both owned and rented properties in this Olathe zip code.
