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Park Farms: Rising Home Values and Shifting Ownership Patterns
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Park Farms, a neighborhood in Kansas City, Missouri, has experienced significant changes in homeownership and property values over the past decade. From 2013 to 2022, the area saw a decline in homeownership rates from 64% to 51%, while average home prices rose substantially from $58,877 to $177,831. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less attainable for some residents.
The interplay between federal interest rates and homeownership trends in Park Farms has been notable. Lower interest rates typically encourage homeownership due to more affordable financing options. In 2021, when interest rates reached a historic low of 0.08%, the neighborhood experienced a slight increase in homeownership from 56% in 2020 to 48% in 2021. However, as interest rates began to rise in 2022 to 1.68%, homeownership increased slightly to 51%, possibly due to residents rushing to purchase homes before rates increased further.
As homeownership declined, the renter population in Park Farms grew. The percentage of renters increased from 36% in 2013 to 49% in 2022. Average rent prices fluctuated during this period, starting at $1,053 in 2013, peaking at $1,102 in 2017, and then decreasing to $958 in 2022. The population growth from 6,320 in 2013 to 7,334 in 2022 may have contributed to the increased demand for rental properties, despite the slight decrease in average rent prices.
In 2023, average home prices in Park Farms reached $187,832, with federal interest rates at 5.02%. Moving into 2024, average home prices have continued to climb to $198,439, while interest rates have further increased to 5.33%. These figures indicate a continued upward trend in property values, even as borrowing costs have risen significantly.
Looking ahead, predictive models suggest that average home prices in Park Farms may continue to rise over the next five years, potentially reaching around $240,000 by 2029. Average rent prices, which have shown more variability, are projected to stabilize and potentially increase to approximately $1,100 per month by 2029.
In summary, Park Farms has experienced a shift from homeownership to renting over the past decade, coinciding with a substantial increase in average home prices. The neighborhood has shown resilience in property values, with consistent growth even in the face of rising interest rates. As the community continues to evolve, the balance between homeowners and renters will likely remain a key factor in shaping the neighborhood's character and real estate market dynamics.
