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Mount Hope: Rising Home Values Amidst Stable Renter-Majority Neighborhood
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
Mount Hope, a small neighborhood in Kansas City, Missouri, has experienced significant changes in its housing market over the past decade. This area is characterized by a predominantly renter-occupied population, with homeownership rates fluctuating between 21% and 28% from 2013 to 2022. Despite the low homeownership rates, the neighborhood has seen a remarkable increase in average home prices. In 2013, the average home price in Mount Hope was $19,763, with a homeownership rate of 24%. By 2022, the average home price had risen to $124,691, while the homeownership rate remained relatively stable at 26%. This substantial increase in home prices, amounting to a 531% rise over the decade, did not significantly impact homeownership rates in the neighborhood. The most notable surge in average home prices occurred between 2020 and 2021, with a 39% increase from $77,847 to $108,455 in just one year.
Federal interest rates have played a role in shaping homeownership trends in Mount Hope. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. During this period, homeownership rates fluctuated between 21% and 28%. Interestingly, the lowest homeownership rate of 21% coincided with one of the lowest interest rates of 0.4% in 2016, suggesting that factors beyond interest rates influenced homeownership decisions in the neighborhood.
Renter percentages in Mount Hope have consistently been high, ranging from 72% to 79% between 2013 and 2022. Average rent prices have shown significant variability during this period. In 2013, the average rent was $487, which increased to $633 in 2014 before dropping to $440 in 2015. Since then, average rent prices have generally trended upward, reaching $742 in 2022. The population of Mount Hope has fluctuated over the years, with 328 residents in 2019 and 347 in 2022, which may have contributed to the demand for rental properties and influenced rent prices.
In 2023, the average home price in Mount Hope reached $128,559, with federal interest rates rising to 5.02%. By 2024, the average home price further increased to $135,078, while interest rates climbed to 5.33%. These figures represent a continued upward trend in both home prices and interest rates, potentially impacting affordability and homeownership decisions in the neighborhood.
Looking ahead, predictive models suggest that average home prices in Mount Hope are likely to continue their upward trajectory over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by the neighborhood's high renter occupancy and the overall trend of rising housing costs.
In summary, Mount Hope has experienced significant growth in average home prices over the past decade, with a remarkable 531% increase from 2013 to 2022. Despite this substantial appreciation, homeownership rates have remained relatively stable, hovering around 25%. The neighborhood continues to be predominantly renter-occupied, with average rent prices showing an overall upward trend. As Mount Hope moves forward, it is likely to see further increases in both home values and rent prices, potentially reshaping the neighborhood's demographic and economic landscape.
