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Kingsway West: Shifting Home Values and Ownership in a St. Louis Neighborhood
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 West, an urban neighborhood in St. Louis, Missouri, has experienced significant changes in its housing market over the past decade. The area has seen notable shifts in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics. From 2016 to 2022, Kingsway West witnessed a substantial increase in homeownership, with rates rising from 37% to 55%. This period also saw fluctuations in average home prices, which increased from $44,030 in 2016 to $53,149 in 2022, representing a 20.7% growth.
The neighborhood's housing market has been influenced by various factors, including federal interest rates. Between 2016 and 2020, relatively low interest rates ranging from 0.4% to 2.16% likely contributed to the rise in homeownership. As interest rates began to climb more sharply in 2022 (1.68%) and 2023 (5.02%), there was a slight decline in homeownership to 55% in 2022, suggesting that higher borrowing costs may have impacted potential buyers. This trend highlights the sensitivity of the local housing market to broader economic conditions.
As homeownership increased, the renter population in Kingsway West decreased from 63% in 2016 to 46% in 2022. Average rent prices showed significant volatility during this period, with a substantial increase from $415 in 2016 to $805 in 2021, followed by a decrease to $559 in 2022. These fluctuations in rent prices do not appear to directly correlate with the renter percentage, indicating that other factors such as local economic conditions or housing supply may be influencing rental costs in the neighborhood.
Recent data reveals a cooling trend in Kingsway West's housing market. The average home price decreased to $43,866 in 2023, a 17.5% drop from 2022, and further declined to $39,386 in 2024, representing a 10.2% reduction from the previous year. This downward trend coincides with rising interest rates, which reached 5.02% in 2023 and 5.33% in 2024. The higher interest rates appear to be contributing to the softening of the housing market in the neighborhood.
Looking ahead, predictive models forecast that average home prices in Kingsway West may continue to face downward pressure in the short term due to the current high-interest rate environment. However, if interest rates stabilize or decrease, a gradual recovery in home prices could occur. For rent prices, the forecast suggests potential stabilization or modest increases, as the rental market often benefits from reduced homebuying activity during periods of higher interest rates.
In conclusion, Kingsway West has experienced a complex housing market landscape over the past decade. The neighborhood saw a significant increase in homeownership rates from 2016 to 2022, accompanied by overall growth in average home prices during this period. However, the area is currently facing a cooling housing market, with decreasing home prices in 2023 and 2024, likely influenced by rising interest rates. The rental market has demonstrated considerable volatility, with substantial increases followed by recent decreases in average rent prices. These trends reflect the dynamic nature of the housing market in Kingsway West and underscore the influence of broader economic factors on local real estate conditions.
