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Manheim Park: Soaring Home Values Amidst Shifting Ownership Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Manheim Park, a neighborhood in Kansas City, Missouri, has undergone significant changes in its housing market over the past decade. This analysis examines the trends in homeownership rates, average home prices, and average rent prices, providing insights into the evolving dynamics of this urban community.
The homeownership rate in Manheim Park has shown a slight decline over the years, with some fluctuations. In 2013, the homeownership rate stood at 34%, but by 2022, it had decreased to 29%. Conversely, the average home prices in the neighborhood have seen a remarkable increase. In 2013, the average home price was $28,038, but by 2022, it had skyrocketed to $185,210, representing a staggering 560% increase over nine years. This significant rise in home prices, coupled with the declining homeownership rate, suggests that while property values have appreciated substantially, it has become increasingly challenging for residents to transition from renting to owning homes in the neighborhood.
The relationship between federal interest rates and homeownership rates in Manheim Park appears to follow the general trend observed nationally. As interest rates remained low from 2013 to 2021, ranging from 0.08% to 1.83%, the homeownership rate in the neighborhood showed some resilience, fluctuating between 28% and 36%. However, as interest rates began to rise sharply in 2022 to 1.68%, the homeownership rate dropped to 29%, indicating that higher borrowing costs may have deterred potential buyers.
Renter percentages in Manheim Park have shown an overall increase, rising from 66% in 2013 to 71% in 2022. Interestingly, the average rent prices have not followed a consistent upward trend. In 2013, the average rent was $800, which increased to $811 by 2016. However, there was a notable decrease to $724 in 2017, followed by fluctuations in subsequent years. By 2022, the average rent had reached $799, nearly returning to its 2013 level. The population of Manheim Park has also fluctuated, peaking at 1,882 residents in 2017 before declining to 1,453 in 2022. These changes in population may have influenced the demand for rental properties and subsequently affected rent prices.
Looking at the most recent data, the average home price in Manheim Park continued its upward trajectory, reaching $189,458 in 2023 and further increasing to $199,382 in 2024. This represents a 7.7% increase from 2022 to 2024, despite the federal interest rate rising to 5.33% in 2024. The continued appreciation in home values, even in the face of higher interest rates, suggests strong demand for properties in the neighborhood.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in Manheim Park will continue to rise, albeit at a potentially slower rate due to higher interest rates. The average home price could potentially reach around $230,000 to $250,000 by 2029. Average rent prices are also expected to increase moderately, possibly reaching $900 to $950 per month within the next five years, as demand for rental properties remains strong in the area.
In summary, Manheim Park has experienced a significant appreciation in property values over the past decade, with average home prices increasing by over 560% from 2013 to 2022. Despite this growth, homeownership rates have declined slightly, while the renter population has increased. The neighborhood's desirability, as evidenced by rising home prices even in the face of higher interest rates, suggests a continued trend of property value appreciation and potential further increases in rental demand in the coming years.
