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Kearney, Missouri: Rising Home Values and High Ownership Rates Amid Interest Rate Shifts
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
Kearney, Missouri, a suburban city located in Clay County, has experienced significant growth and development over the past decade. This analysis examines the trends in homeownership, average home prices, and average rent prices in Kearney from 2013 to 2022. The city has maintained a high rate of homeownership, consistently above 78%, while average home prices have shown a steady increase. Average rent prices have also risen, albeit with some fluctuations.
The homeownership rate in Kearney has remained relatively stable, with a slight increase from 81% in 2013 to 83% in 2022. This high rate of homeownership coincides with a substantial rise in average home prices. In 2013, the average home price in Kearney was $182,081. By 2022, this figure had climbed to $365,092, representing a remarkable 100.5% increase over nine years. This trend suggests that despite rising prices, Kearney has remained an attractive market for homebuyers, possibly due to factors such as community amenities, quality of life, or economic opportunities.
Federal interest rates have played a significant role in shaping homeownership trends in Kearney. From 2013 to 2016, interest rates remained exceptionally low, hovering around 0.1% to 0.4%. During this period, homeownership rates in Kearney remained stable at around 80%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), there was a slight dip in homeownership to 78% in 2017. However, the trend reversed when interest rates dropped again in 2020 and 2021, with homeownership increasing to 82% by 2021. This pattern demonstrates how lower interest rates generally encourage homeownership by making mortgages more affordable.
The rental market in Kearney has shown interesting dynamics. The percentage of renters decreased from 22% in 2017 to 17% in 2022. Despite this decrease in the renter population, average rent prices have generally increased. In 2013, the average rent was $1,080, which rose to $1,176 by 2022, representing a 8.9% increase. However, this increase was not linear, with some fluctuations observed. For instance, average rent peaked at $1,303 in 2019 before declining slightly in subsequent years. These trends suggest that while the rental market has become smaller, it has also become more competitive, potentially due to limited rental inventory or increased demand for higher-quality rental properties.
In 2023 and 2024, Kearney's housing market continued to show strength. The average home price reached $375,422 in 2023 and further increased to $383,836 in 2024, indicating ongoing appreciation in property values. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homebuying activity.
Looking ahead, based on historical trends and current market conditions, we can expect average home prices in Kearney to continue their upward trajectory over the next five years, albeit potentially at a more moderate pace due to higher interest rates. Average rent prices are likely to stabilize or increase slightly, influenced by the city's growing population and the balance between rental supply and demand.
In summary, Kearney has maintained a strong homeownership market with steadily increasing property values, despite fluctuations in interest rates. The rental market, while smaller, has shown resilience with generally increasing average rents. These trends, coupled with the city's population growth, suggest a robust and desirable housing market in Kearney, with potential for continued appreciation in both home values and rental rates in the coming years.
