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Loma Vista, Kansas City: Rising Home Values Amidst Market Shifts
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loma Vista, a neighborhood in Kansas City, Missouri, has experienced significant changes in its real estate market and demographics over the past decade. This analysis examines the fluctuations in homeownership rates, the substantial increase in average home prices, and the evolving rental trends that have shaped the area's housing landscape.
The homeownership rate in Loma Vista has undergone notable changes since 2013. Starting at a low 12% in 2013, it rose steadily to reach 21% in 2019, indicating a growing trend towards homeownership. However, this trend reversed in subsequent years, with the rate declining to 11% by 2022. Concurrently, average home prices in the neighborhood have shown a consistent upward trajectory. From $52,467 in 2013, the average home price more than tripled to $167,819 by 2022. This substantial increase in home values, particularly the sharp rise from $128,088 in 2020 to $167,819 in 2022, may have contributed to the recent decline in homeownership rates as affordability became a challenge for potential buyers.
Federal interest rates have played a significant role in shaping homeownership trends in Loma Vista. The period of low interest rates from 2013 to 2016, when rates remained below 0.5%, coincided with the initial increase in homeownership rates from 12% to 16%. As interest rates began to rise from 2017 onwards, reaching 2.16% in 2019, the homeownership rate peaked at 21%. However, the subsequent drop in interest rates to 0.08% in 2021 did not prevent the decline in homeownership, suggesting that other factors, such as rapidly increasing home prices, may have outweighed the benefits of low interest rates for potential homebuyers.
Rental trends in Loma Vista have shown an inverse relationship to homeownership rates. As homeownership declined from 21% in 2019 to 11% in 2022, the percentage of renters increased from 79% to 89%. This shift towards renting has been accompanied by a steady increase in average rent prices. In 2013, the average rent was $725 per month, which rose to $830 by 2022. The most significant jump occurred between 2017 and 2018, when average rent increased from $751 to $812. The high proportion of renters, combined with rising rent prices, suggests a strong demand for rental properties in the neighborhood.
In 2023 and 2024, Loma Vista continued to see growth in average home prices. The average home price reached $172,517 in 2023 and further increased to $181,290 in 2024. This represents a 5.1% increase from 2023 to 2024, indicating a continuing upward trend in property values. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and property market dynamics in the neighborhood.
Looking ahead, based on the observed trends, average home prices in Loma Vista will likely continue to rise over the next five years, albeit potentially at a slower rate due to higher interest rates. Projecting the current trend, average home prices could reach approximately $210,000 to $220,000 by 2029. Average rent prices are also expected to increase, potentially reaching around $950 to $1,000 per month in the same timeframe, assuming the current growth rate continues.
In summary, Loma Vista has experienced a significant increase in property values over the past decade, with average home prices more than tripling since 2013. The neighborhood has shifted from a predominantly renter-occupied area to one with an even higher proportion of renters, despite a brief period of increased homeownership. The recent trend of declining homeownership rates, coupled with rising home and rent prices, suggests that affordability may be a growing concern for residents. As the neighborhood continues to evolve, these trends will likely shape its demographic composition and real estate market in the coming years.
