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Mission Lake's Housing Market: Rising Home Values Amidst Changing 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
Mission Lake, a neighborhood in Kansas City, Missouri, has experienced notable changes in its housing market over the past decade. The area has maintained a homeownership rate consistently above 60%, while average home prices have shown a steady upward trajectory. This analysis examines the trends in homeownership, home values, and rental market dynamics in Mission Lake from 2013 to 2024 and beyond.
The homeownership rate in Mission Lake has fluctuated between 58% and 65% from 2013 to 2022. Starting at 65% in 2013, it declined to 58% by 2018, before recovering to 62% in 2022. During this period, average home prices in the neighborhood demonstrated consistent growth. In 2013, the average home price was $134,484, which increased significantly to $291,182 by 2022, representing a substantial 116% rise over nine years.
The correlation between federal interest rates and homeownership rates in Mission Lake is noteworthy. When interest rates were at historic lows between 2013 and 2016, ranging from 0.09% to 0.4%, homeownership rates remained relatively stable around 61-65%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, there was a slight decline in homeownership rates to 62%.
The rental market in Mission Lake has also shown significant changes. The percentage of renters increased slightly over the years, rising from 34% in 2013 to 38% in 2022. This trend coincided with an increase in average rent prices, which rose from $797 in 2013 to $957 in 2022, a 20% increase. The neighborhood's population fluctuated during this period, peaking at 5,100 in 2018 before declining to 4,032 in 2022, potentially influencing rental market dynamics.
As of 2024, the average home price in Mission Lake has reached $316,875, indicating continued growth from the 2022 figure. This increase has occurred despite a significant rise in federal interest rates, which stood at 5.33% in 2024, up from 1.68% in 2022. The 2023 average home price was $305,896, demonstrating a steady year-over-year increase in property values.
Based on historical trends and current market conditions, projections suggest that average home prices in Mission Lake will continue to rise over the next five years, potentially reaching around $375,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,100 per month within the same timeframe. However, factors such as interest rates and overall economic conditions may moderate the rate of increase.
In conclusion, Mission Lake has demonstrated resilience in its housing market, with steadily increasing home values despite fluctuations in homeownership rates. The rental market has also shown growth, both in terms of the proportion of renters and average rent prices. The neighborhood's ability to maintain property value growth even in the face of rising interest rates suggests a strong local real estate market with continued potential for appreciation.
