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Home Values and Ownership Trends in Kansas City's 64125 Zip Code: A Decade of Significant Growth
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 64125, located in Kansas City, Missouri, has experienced significant changes in homeownership rates and property values over the past decade. This area has seen a general trend towards increased homeownership and rising average home prices, with some fluctuations in average rent prices.
The ownership percentage in zip code 64125 has shown an overall upward trend, increasing from 46% in 2015 to 62% in 2022. This substantial rise in homeownership coincides with a dramatic increase in average home prices. In 2015, the average home price was $24,271, which more than tripled to $83,234 by 2022. This correlation suggests that despite rising prices, more residents were able to enter the housing market, possibly due to favorable economic conditions or increased desirability of the area.
Federal interest rates have played a significant role in homeownership trends. From 2015 to 2020, interest rates remained relatively low, ranging from 0.13% to 2.16%. This period of low interest rates coincided with the increase in homeownership from 46% to 57%. The accessibility of affordable mortgages likely contributed to this trend, making homeownership more attainable for many residents in the 64125 zip code.
Conversely, the renter percentage in the area decreased from 54% in 2015 to 38% in 2022. Despite this decline in the renter population, average rent prices showed some volatility. In 2015, the average rent was $891, which increased to $956 by 2017, but then decreased to $843 in 2022. The fluctuation in rent prices, coupled with the decreasing renter population, suggests a complex rental market influenced by factors such as housing supply, local economic conditions, and potentially, the shift towards homeownership.
In 2023 and 2024, the average home prices in zip code 64125 continued to rise, reaching $84,944 in 2023 and $89,155 in 2024. This represents a 2% increase from 2022 to 2023 and a further 5% increase from 2023 to 2024. Notably, federal interest rates also increased significantly during this period, rising to 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, the continued rise in home prices suggests a strong demand for housing in this area.
Looking ahead, predictive models forecast a continued upward trend in average home prices for zip code 64125 over the next five years. Based on historical data and current market conditions, average home prices could potentially reach $110,000 to $120,000 by 2029. Average rent prices are also expected to increase, albeit at a more moderate pace, potentially reaching $950 to $1,000 per month in the same timeframe.
In summary, zip code 64125 has demonstrated a strong trend towards increased homeownership and rising property values over the past decade. The area has shown resilience in the face of changing interest rates and economic conditions, with a consistent increase in average home prices. While the rental market has experienced some fluctuations, the overall trajectory suggests a growing preference for homeownership in this Kansas City neighborhood. These trends indicate a dynamic and evolving real estate market in zip code 64125, with potential for continued growth in both home values and rental rates in the coming years.
