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Kirkside, Kansas City: Soaring Home Values and Ownership Rates Defy Interest Rate Trends
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
Kirkside, a small neighborhood in Kansas City, Missouri, has undergone significant changes in its housing market over the past decade. This area has experienced a substantial increase in homeownership rates and property values, reflecting broader economic trends and local market conditions. From 2013 to 2022, Kirkside saw a remarkable rise in homeownership rates, increasing from 55% to 85%. This growth coincided with a significant increase in average home prices, which rose from $41,847 in 2013 to $152,603 in 2022, representing a 264% increase over nine years. The trend of increasing homeownership rates in Kirkside appears to be influenced by federal interest rates. During the period from 2013 to 2016, when interest rates were historically low (ranging from 0.09% to 0.40%), homeownership initially rose from 55% to 60%. As interest rates gradually climbed from 2017 onwards, reaching 1.68% in 2022, homeownership in Kirkside continued to grow, suggesting that other local factors were also driving this trend.
In contrast, the percentage of renters in Kirkside has steadily declined, dropping from 44% in 2013 to 15% in 2022. Despite this decrease in the renter population, average rent prices have shown a moderate increase. The average rent rose from $1,143 in 2013 to $1,234 in 2022, a 7.9% increase over the period. This trend suggests that while fewer residents are renting, those who do are paying higher prices, possibly due to improved rental property quality or increased demand for the limited rental stock.
More recent data shows that the average home price in Kirkside continued its upward trajectory, reaching $166,187 in 2023 and $174,111 in 2024. This represents a further 14% increase from 2022 to 2024. Notably, federal interest rates have also risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends in the neighborhood.
Predictive models forecast that over the next five years, average home prices in Kirkside will continue to rise, potentially reaching around $200,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. For rent prices, a more moderate increase is expected, potentially reaching an average of $1,350 to $1,400 per month by 2029, assuming current trends persist.
In conclusion, Kirkside has experienced a dramatic shift towards homeownership, accompanied by substantial increases in property values. The neighborhood has transformed from a mixed owner-renter community to one predominantly occupied by homeowners. Despite rising interest rates, the demand for homeownership in Kirkside remains strong, suggesting a positive outlook for property values in the coming years. The rental market, while shrinking, has seen modest price increases, indicating a potentially lucrative opportunity for the remaining rental property owners.
