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Kickapoo Neighborhood: Rising Home Values and Shifting Ownership Patterns
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Kickapoo, a neighborhood in Springfield, Missouri, has experienced significant changes in its real estate market and demographic composition over the past decade. This analysis focuses on the trends in homeownership rates, average home prices, and rental market dynamics from 2020 to 2024, with projections extending to 2029. The neighborhood has witnessed a notable decline in homeownership rates, dropping from 36% in 2020 to 29% in 2022. Concurrently, average home prices have seen a substantial increase, rising from $169,333 in 2020 to $227,440 in 2022, representing a 34% surge in just two years. This inverse relationship suggests that escalating home prices may be making homeownership less accessible, resulting in a higher proportion of renters in the area.
Federal interest rates have played a significant role in shaping homeownership trends in Kickapoo. From 2010 to 2021, interest rates remained historically low, ranging between 0.1% and 0.4%. Despite these favorable borrowing conditions, homeownership in Kickapoo did not see a significant boost, likely due to other factors such as rapidly appreciating home values. The sharp increase in interest rates to 1.68% in 2022 coincided with a further decrease in homeownership, falling from 35% in 2021 to 29% in 2022.
As homeownership declined, the percentage of renters in Kickapoo increased from 64% in 2020 to 71% in 2022. This shift was accompanied by a substantial rise in average rent prices, climbing from $838 in 2020 to $970 in 2022, a 16% increase. The growing renter population and rising rents indicate a strong demand for rental properties in the area, possibly driven by those unable to enter the increasingly expensive housing market.
The most recent data shows that average home prices in Kickapoo continued to rise, reaching $235,502 in 2023 and $242,159 in 2024. This represents a further 6.5% increase from 2022 to 2024. Simultaneously, federal interest rates have climbed significantly, hitting 5.02% in 2023 and 5.33% in 2024. These high interest rates, combined with elevated home prices, are likely to continue exerting pressure on homeownership rates in the neighborhood.
Predictive models forecasting 5-year trends anticipate continued growth in both average home prices and rent prices in Kickapoo. Home prices are projected to increase by approximately 3-5% annually, potentially reaching around $280,000 by 2029. Average rent prices are expected to follow a similar trajectory, potentially surpassing $1,100 per month within the next five years. These projections assume a continuation of current economic conditions and local market forces.
In conclusion, Kickapoo has experienced a significant shift towards a renter-majority population, driven by rapidly appreciating home values and fluctuating interest rates. The inverse relationship between homeownership rates and housing prices highlights the challenges of affordability in the area. As both home prices and rents continue to rise, the neighborhood is likely to see ongoing changes in its demographic composition and housing market dynamics.
