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Ivanhoe Southeast: Home Values Surge Amid Resilient Ownership Rates
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Ivanhoe Southeast, a neighborhood in Kansas City, Missouri, has experienced significant changes in its housing market over the past decade. This analysis focuses on the shifts in homeownership rates, average home prices, and rental trends from 2013 to 2024, highlighting the impact of economic factors on the local real estate landscape.
The ownership percentage in Ivanhoe Southeast has shown a general trend towards increased renting. In 2013, homeowners represented 39% of the population, decreasing to 35% by 2022. Concurrently, average home prices in the neighborhood have seen a dramatic increase. In 2012, the average home price was $14,147, rising steadily to reach $77,396 by 2022, representing a remarkable 447% increase over a decade. The most significant jump occurred between 2020 and 2021, when average home prices surged from $40,309 to $59,741, a 48% increase in just one year.
Federal interest rates have played a crucial role in shaping homeownership trends in Ivanhoe Southeast. The period from 2013 to 2015 saw historically low interest rates, hovering around 0.1%. During this time, homeownership rates in the neighborhood remained relatively stable, ranging from 33% to 39%. However, as interest rates began to rise from 2016 onwards, reaching 1.68% by 2022, homeownership rates showed a slight decline, settling at 35% in 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in Ivanhoe Southeast have generally increased over the years, from 61% in 2013 to 65% in 2022. This shift coincides with changes in average rent prices. In 2013, the average rent was $870, which increased to $992 by 2022, representing a 14% rise over nine years. Notably, there were fluctuations in between, with the highest average rent of $1,058 recorded in 2021. The increasing renter population, which grew from 2,225 in 2013 to 2,589 in 2022, may have contributed to the upward pressure on rent prices.
In 2023, the average home price in Ivanhoe Southeast reached $78,941, showing a modest increase from the previous year. This trend continued into 2024, with average home prices rising to $84,935. Interestingly, federal interest rates also saw a significant increase during this period, climbing to 5.02% in 2023 and further to 5.33% in 2024. Despite these higher interest rates, which typically dampen home buying activity, the neighborhood's housing market has continued to appreciate.
Looking ahead, predictive models suggest that average home prices in Ivanhoe Southeast are likely to continue their upward trajectory over the next five years, albeit at a potentially slower pace due to higher interest rates. Average rent prices are also expected to increase, driven by the growing renter population and overall housing demand in the area. However, the rate of increase may moderate as the market adjusts to economic conditions and housing supply changes.
In summary, Ivanhoe Southeast has experienced a significant transformation in its housing market over the past decade. The neighborhood has seen a shift towards a higher percentage of renters, accompanied by substantial increases in average home prices and moderate growth in average rent prices. Despite rising interest rates, the housing market has shown resilience, with continued appreciation in home values. These trends reflect the dynamic nature of the neighborhood and suggest ongoing changes in its demographic and economic landscape in the coming years.
