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Palestine East, Kansas City: Home Values Soar as Ownership Fluctuates
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
Palestine East, a neighborhood in Kansas City, Missouri, has experienced significant changes in its housing market over the past decade. The area has seen notable shifts in homeownership rates and average home prices, reflecting broader economic trends and local market dynamics. The homeownership rate in Palestine East has fluctuated over the years, while average home prices have experienced substantial growth. In 2013, the homeownership rate was 52%, with average home prices at $13,591. By 2019, the ownership rate had decreased to 35%, while average home prices rose dramatically to $32,057. The most recent data from 2022 shows a recovery in homeownership at 49%, with average home prices reaching $64,816.
Federal interest rates have influenced homeownership trends in Palestine East. During periods of lower interest rates (2013-2016), homeownership rates in the neighborhood were relatively stable, ranging from 50% to 55%. As interest rates began to rise in 2017 (1%) and 2018 (1.83%), homeownership rates dropped to 51% and 41% respectively, aligning with the principle that lower interest rates encourage homeownership due to more affordable financing options.
Renter percentages and average rent prices in Palestine East have shown interesting patterns. In 2013, the renter-occupied percentage was 48%, with an average rent of $1,942. By 2019, the renter percentage increased to 64%, while average rent decreased to $1,628. This trend suggests that despite more people renting, there was downward pressure on rental prices. The population decline from 1,365 in 2013 to 879 in 2019 may have contributed to this dynamic.
Recent data shows continued growth in property values. In 2023, average home prices in Palestine East reached $66,630, with federal interest rates at 5.02%. In 2024, average home prices further increased to $73,497, while interest rates rose to 5.33%. These figures indicate a continuing upward trend in property values despite higher borrowing costs, suggesting strong demand in the neighborhood's real estate market.
Applying predictive models to forecast 5-year trends, we can anticipate continued growth in average home prices, albeit at a potentially slower rate due to higher interest rates. Average rent prices, which have been volatile, may stabilize or increase moderately as the neighborhood's population grows and housing demand increases.
In summary, Palestine East has undergone significant changes in its housing market. The neighborhood has seen fluctuations in homeownership rates over the years, coupled with substantial increases in average home prices. Rental markets have fluctuated, with recent trends showing a balance between renter and owner-occupied units. The interplay between federal interest rates, population changes, and local economic factors has shaped these trends, creating a dynamic and evolving housing landscape in this Kansas City neighborhood.
