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Kingsway East: Rising Home Values and Ownership Rates Amidst Rental Market Volatility
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
Kingsway East, a neighborhood in St. Louis, Missouri, has experienced significant changes in its real estate market over the past decade. This residential area has seen substantial shifts in homeownership rates and average home prices, reflecting broader economic changes and local development patterns. The homeownership rate in Kingsway East has shown a remarkable upward trend. In 2013, the rate was 39%, but by 2022, it had risen dramatically to 67%. This 28 percentage point increase indicates a growing preference for homeownership in the neighborhood. Concurrently, average home prices fluctuated. In 2013, the average home price was $38,148, which declined to $25,005 in 2016 before rebounding to $49,096 in 2022. This represents a 96% increase in average home prices from 2016 to 2022, despite earlier declines.
The relationship between federal interest rates and homeownership rates in Kingsway East follows a well-established pattern. As interest rates remained low, particularly from 2013 to 2016 when they were below 0.5%, homeownership began to increase. The continued low rates through 2021 (0.08%) likely contributed to the sustained growth in homeownership, reaching 63% that year. Even as rates began to rise in 2022 to 1.68%, homeownership continued to climb, suggesting other factors such as local economic conditions or housing policies may have played a role in supporting this trend.
Conversely, the percentage of renters in Kingsway East has decreased over time, from 51% in 2013 to 33% in 2022. This decline in renter occupancy has been accompanied by fluctuations in average rent prices. In 2013, the average rent was $783, which remained relatively stable until 2020 when it dropped to $724. However, there was a significant spike to $929 in 2021, followed by a sharp decrease to $695 in 2022. These rent price fluctuations, particularly the recent decrease, may have influenced some residents to transition from renting to homeownership, contributing to the observed trends.
In 2023 and 2024, the real estate market in Kingsway East showed signs of stabilization. The average home price in 2023 was $43,765, a slight decrease from 2022, but it rose marginally to $43,920 in 2024. This suggests a leveling off of home prices after the significant increases seen in previous years. Notably, federal interest rates increased substantially to 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership trends in the neighborhood.
Looking ahead, predictive models suggest that average home prices in Kingsway East may continue to experience moderate growth over the next five years, potentially reaching around $55,000 by 2029. This projection is based on the historical trend of recovery and growth observed since 2016. Average rent prices are forecasted to stabilize and potentially increase slightly, possibly reaching around $800 per month by 2029, assuming economic conditions remain favorable and demand for rental properties in the area persists.
In summary, Kingsway East has witnessed a significant shift towards homeownership, with average home prices recovering and growing substantially since 2016. The rental market has seen a decrease in occupancy and recent volatility in rent prices. These trends, combined with the influence of interest rates and local market conditions, paint a picture of a neighborhood in transition, with a growing preference for homeownership and stabilizing property values.
