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Knoches Park: Rising Home Values Amidst Declining Ownership
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Knoches Park, a neighborhood in Kansas City, Missouri, has experienced significant changes in its housing market over the past decade. This area has seen notable shifts in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Knoches Park has shown a declining trend over the years, with some fluctuations. In 2013, the homeownership rate was 37%, which slightly increased to 39% in 2015. However, it then began a downward trajectory, reaching its lowest point of 26% in 2020. Interestingly, this decline in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price in the neighborhood was $14,729. By 2022, it had skyrocketed to $74,211, representing a remarkable 404% increase over nine years.
The inverse relationship between homeownership rates and average home prices in Knoches Park can be partially explained by federal interest rates. From 2013 to 2016, interest rates remained historically low, hovering around 0.1% to 0.4%. During this period, homeownership rates in the neighborhood remained relatively stable, between 37% and 39%. However, as interest rates began to rise from 2017 onwards, reaching 1.83% in 2018 and 2.16% in 2019, homeownership rates in Knoches Park started to decline more rapidly. This trend suggests that rising interest rates may have made home purchases less affordable for potential buyers in the area.
As homeownership declined, the percentage of renters in Knoches Park increased. In 2013, 63% of residents were renters, and this figure rose to 74% by 2020. Interestingly, average rent prices in the neighborhood did not follow a consistent upward trend during this period. In 2013, the average rent was $1,006, which peaked at $1,041 in 2014 before fluctuating in subsequent years. By 2022, the average rent had decreased to $820, despite the higher proportion of renters. This unusual trend might be attributed to factors such as increased housing supply or local economic conditions affecting rental demand.
Looking at the most recent data, the average home price in Knoches Park continued to rise, reaching $75,973 in 2023 and $83,731 in 2024. This represents a further 12.8% increase from 2022 to 2024. Concurrently, federal interest rates have also increased significantly, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may put additional pressure on homeownership rates in the neighborhood, potentially leading to a continued increase in the proportion of renters.
Applying predictive models to forecast 5-year trends, we can anticipate that average home prices in Knoches Park will likely continue to rise, albeit potentially at a slower rate due to the higher interest rates. The average home price could potentially reach around $100,000 by 2029. As for average rent prices, the forecast suggests a possible stabilization or slight increase, potentially reaching around $900 per month by 2029, assuming economic conditions remain relatively stable.
In summary, Knoches Park has experienced a significant decline in homeownership rates coupled with a substantial increase in average home prices over the past decade. The rising federal interest rates have likely contributed to this trend by making home purchases less affordable. Meanwhile, the rental market has expanded, but average rent prices have not increased proportionally. The coming years may see continued growth in home prices and a potential stabilization in the rental market, shaped by broader economic factors and local market conditions.
