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Morningside's Housing Market: Resilient Ownership Amid Rising Home Values
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
Morningside, a neighborhood in Kansas City, Missouri, exhibits a robust homeownership culture and a dynamic real estate market. Over the past decade, this area has experienced notable fluctuations in ownership percentages, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
The homeownership rate in Morningside has remained consistently high, ranging from 80% to 90% between 2013 and 2022. This stability in homeownership coincides with a steady increase in average home prices. In 2013, the average home price was $227,590, and by 2022, it had risen to $414,776, representing an impressive 82% increase over nine years. This trend suggests a strong correlation between sustained high homeownership rates and appreciating property values in the neighborhood.
Federal interest rates have played a significant role in shaping homeownership trends in Morningside. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.40%. During this time, homeownership in Morningside remained high, between 80% and 85%. As interest rates began to rise from 2017 to 2019 (1.00% to 2.16%), homeownership actually increased, reaching a peak of 90% in 2018. This could indicate that residents were motivated to purchase homes before rates increased further, or that the neighborhood's desirability outweighed the impact of rising rates.
Renter percentages in Morningside have fluctuated inversely to homeownership rates, ranging from 10% to 20% between 2013 and 2022. Interestingly, average rent prices have shown significant volatility during this period. In 2013, the average rent was $1,366, dropping to a low of $690 in 2016 before rising again to $1,491 in 2018. By 2022, the average rent had decreased to $822. This volatility in rent prices doesn't show a clear correlation with the percentage of renters, suggesting that other factors, such as local economic conditions or housing supply, may have a stronger influence on rental rates in this predominantly owner-occupied neighborhood.
In 2023 and 2024, Morningside continued to see growth in average home prices. The average home price reached $423,860 in 2023 and further increased to $444,679 in 2024, representing a 5% year-over-year growth. This upward trend occurred despite the Federal Reserve raising interest rates to 5.02% in 2023 and 5.33% in 2024, indicating strong demand for homes in the neighborhood even in a higher interest rate environment.
Looking ahead, based on the historical data and current trends, we can forecast continued growth in average home prices in Morningside over the next five years. Assuming a conservative annual growth rate of 4%, average home prices could reach approximately $540,000 by 2029. Rent prices, given their historical volatility, are more challenging to predict. However, if we assume a stabilization and modest growth aligned with inflation, average rents could potentially reach around $950 to $1,000 per month in the same timeframe.
In summary, Morningside demonstrates a robust housing market characterized by high homeownership rates and steadily increasing property values. The neighborhood has shown resilience to fluctuations in interest rates, maintaining strong homeownership even as rates have risen. While rent prices have been volatile, the overall trend points to a stable and desirable residential area. The continued appreciation of home values, even in the face of higher interest rates, suggests that Morningside remains an attractive location for homeowners and investors alike.
