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Independence, Kansas: Rising Home Values and Ownership Rates in a Dynamic Market
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, Kansas, located in Montgomery County, is a city with a rich history dating back to the mid-19th century. Known for its annual Neewollah Festival, the largest annual event in Kansas, Independence has experienced notable shifts in its housing market and population dynamics over the past decade. The city has seen a general trend of increasing homeownership rates, fluctuating average home prices, and rising average rent prices.
The homeownership rate in Independence has shown a steady increase from 66% in 2013 to 72% in 2022. This upward trend coincides with fluctuations in average home prices. In 2013, the average home price was $79,993, which decreased to a low of $67,852 in 2017 before rebounding to $101,597 in 2022. This represents a significant 27% increase in average home prices from 2013 to 2022, despite the initial decline. The increase in homeownership rates during this period suggests that residents were taking advantage of the relatively affordable housing market, especially during the years when prices were lower.
Federal interest rates have played a crucial role in shaping homeownership trends in Independence. From 2013 to 2020, interest rates remained historically low, ranging from 0.09% to 2.16%. This period of low interest rates coincided with the increase in homeownership rates from 66% to 69%. The affordability of financing options during this time likely encouraged more residents to purchase homes. As interest rates began to rise more sharply in 2022 (1.68%) and 2023 (5.02%), the homeownership rate continued to increase to 72%, possibly due to residents rushing to secure mortgages before rates climbed further.
The rental market in Independence has experienced its own set of trends. The percentage of renters decreased from 34% in 2013 to 28% in 2022. Despite this decline, average rent prices have shown an overall upward trend. In 2013, the average rent was $640, which increased to $717 by 2022, representing a 12% rise over this period. The peak average rent was observed in 2018 at $768. The increase in rent prices, coupled with the declining renter population, suggests a tightening rental market, possibly due to a reduction in available rental units as more properties transitioned to owner-occupied status.
In 2023 and 2024, the average home prices in Independence have stabilized, with values of $102,614 and $102,598 respectively. This plateau in home prices comes at a time when federal interest rates have reached their highest levels in years, at 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be contributing to the stabilization of home prices by potentially cooling demand in the housing market.
Looking ahead to the next five years, predictive models suggest that average home prices in Independence may continue to experience moderate growth, albeit at a slower pace than the rapid increases seen in recent years. This moderation is likely due to the higher interest rate environment. Average rent prices are projected to maintain their upward trajectory, potentially reaching around $800 by 2029, driven by the continued tightening of the rental market and overall inflation trends.
In summary, Independence has witnessed a significant shift towards homeownership, with rates increasing from 66% to 72% between 2013 and 2022. This trend has been accompanied by fluctuations in average home prices, which ultimately rose by 27% over the same period. The rental market has seen a decrease in the proportion of renters, yet average rent prices have increased by 12%. These trends, coupled with the recent stabilization of home prices and high interest rates, paint a picture of a dynamic housing market in Independence, Kansas, that continues to evolve in response to economic factors and local demographic changes.
