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North Hyde Park: Rising Home Values and Ownership in a Dynamic Kansas City 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
North Hyde Park, a neighborhood in Kansas City, Missouri, has experienced significant changes in its residential landscape over the past decade. This analysis explores the trends in homeownership rates, average home prices, and average rent prices, revealing the neighborhood's evolving character. The homeownership rate in North Hyde Park has shown a slight increase over the years. In 2013, the rate was 22%, rising to 29% by 2022. This upward trend coincides with a substantial increase in average home prices. In 2013, the average home price was $86,982, more than tripling to $298,001 by 2022. This dramatic rise in home values likely contributed to the modest increase in homeownership, as existing homeowners benefited from appreciating assets while potential buyers faced higher barriers to entry.
The relationship between federal interest rates and homeownership rates shows some correlation. During periods of low interest rates, such as from 2013 to 2016 when rates remained below 0.5%, homeownership rates increased from 22% to 26%. However, as interest rates began to rise in 2017, reaching 1.83% by 2018, homeownership rates stabilized around 30%. This suggests that while low interest rates may have initially encouraged homeownership, other factors such as rapidly increasing home prices may have counteracted this effect in later years.
Renter percentages in North Hyde Park have remained consistently high, though showing a slight decrease from 78% in 2013 to 71% in 2022. Average rent prices have experienced significant volatility during this period. In 2013, the average rent was $512, dropping to a low of $439 in 2015 before steadily climbing to $968 by 2022. This represents an 88% increase in average rent prices over nine years. The population growth from 1,275 in 2013 to 1,997 in 2022 likely contributed to the upward pressure on rent prices, as demand for housing in the area increased.
Recent data shows that average home prices in North Hyde Park continued to rise, reaching $305,441 in 2023 and $317,310 in 2024. This represents a 2.5% increase from 2022 to 2023 and a further 3.9% increase from 2023 to 2024. Concurrently, federal interest rates have risen sharply, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may potentially impact future homeownership rates and home price appreciation in the neighborhood.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in North Hyde Park will continue to rise, albeit at a more moderate pace. Projections suggest that by 2029, average home prices could reach approximately $380,000 to $400,000, representing a 20-26% increase from 2024 levels. Average rent prices are also expected to continue their upward trajectory, potentially reaching $1,200 to $1,300 per month by 2029, an increase of 24-34% from 2022 levels.
In summary, North Hyde Park has experienced significant growth in both population and property values over the past decade. The neighborhood has seen a modest increase in homeownership rates despite rapidly rising home prices, suggesting strong demand for housing in the area. Rent prices have also increased substantially, reflecting the growing desirability of the neighborhood. As North Hyde Park continues to evolve, balancing affordability with growth will be crucial for maintaining a diverse and vibrant community.
