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Mount Washington: Soaring Home Values and Ownership Rates in Independence, Missouri
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Mount Washington, a neighborhood in Independence, Missouri, has experienced significant changes in homeownership rates and housing prices over the past decade. The area has seen a general trend of increasing average home prices, while ownership percentages have fluctuated. Average rent prices have also shown an upward trajectory, albeit with some variations.
The relationship between homeownership rates and average home prices in Mount Washington has been dynamic. In 2013, the homeownership rate was 35%, with an average home price of $24,709. As home prices steadily increased, reaching $53,837 in 2018, the homeownership rate slightly decreased to 33%. However, a significant shift occurred in 2022, when the homeownership rate jumped to 48%, coinciding with an average home price of $103,501. This suggests that despite rising prices, more residents were able to enter the housing market.
Federal interest rates have played a role in homeownership trends in Mount Washington. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.4%), homeownership rates remained relatively stable around 35-38%. As interest rates began to rise in 2017 (1%) and 2018 (1.83%), there was a slight dip in homeownership to 33% in 2018. Interestingly, despite higher interest rates in 2022 (1.68%), homeownership surged to 48%, indicating other factors may have influenced this increase.
Renter percentages and average rent prices have shown their own trends. In 2013, 65% of residents were renters, with an average rent of $779. As the population grew from 1,831 in 2013 to 2,353 in 2019, the percentage of renters increased to 71%, with average rent rising to $800. However, by 2022, the renter percentage decreased to 52%, while average rent continued to climb to $819. This shift suggests a move towards homeownership, possibly due to factors such as increased housing affordability or changes in local economic conditions.
In 2023 and 2024, Mount Washington has experienced further increases in average home prices. The average home price reached $114,779 in 2023 and rose to $122,741 in 2024. This represents an 18.6% increase from 2022 to 2024. Concurrently, federal interest rates have significantly increased, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends in the neighborhood.
Looking ahead, predictive models suggest a continued upward trend in both average home prices and rent prices over the next five years. Average home prices are projected to increase by approximately 5-7% annually, potentially reaching around $160,000 by 2029. Average rent prices are expected to rise at a more moderate rate of 2-3% per year, potentially reaching $900-$950 by 2029.
In summary, Mount Washington has demonstrated resilience in its housing market, with a recent surge in homeownership despite rising home prices. The neighborhood has shown the ability to adapt to changing economic conditions, including fluctuations in interest rates. As average home and rent prices continue their upward trajectory, it will be crucial to monitor how these trends impact the community's demographics and overall affordability in the coming years.
