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Pendleton Heights: Rising Home Values and Shifting Ownership Trends in a Kansas City Neighborhood
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Pendleton Heights, a vibrant neighborhood in Kansas City, Missouri, has experienced notable shifts in its housing market over the past decade. This area has seen fluctuating homeownership rates, with a general trend towards more renters, while average home prices have shown significant appreciation. Average rent prices have also increased, albeit with some volatility.
The relationship between homeownership rates and average home prices in Pendleton Heights reveals an interesting dynamic. In 2013, the neighborhood had a 25% homeownership rate, with average home prices at $53,546. As average home prices steadily increased, reaching $163,978 by 2019, homeownership rates declined to 21%. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents. However, from 2020 to 2022, there was a slight reversal in this trend. Homeownership rates increased from 23% to 26%, while average home prices continued to rise, reaching $231,496 in 2022. This could indicate a growing interest in homeownership despite higher prices, possibly due to other economic factors or changes in the neighborhood's desirability.
Federal interest rates have played a role in shaping homeownership trends in Pendleton Heights. The period from 2013 to 2015 saw very low interest rates, ranging from 0.11% to 0.13%. During this time, homeownership rates decreased slightly from 25% to 23%, possibly due to other local economic factors outweighing the benefits of low interest rates. As interest rates began to rise more significantly from 2016 (0.4%) to 2019 (2.16%), homeownership rates continued to decline, reaching 19% in 2018 and 2019. However, when interest rates dropped sharply in 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates began to recover, rising to 24% by 2021.
The renter population in Pendleton Heights has shown a general upward trend, with some fluctuations. In 2013, 75% of residents were renters, and this percentage increased to 81% by 2018. During this period, average rent prices decreased from $548 in 2013 to $509 in 2018, possibly making renting more attractive. However, from 2019 to 2022, the renter percentage decreased slightly to 74%, while average rent prices increased substantially from $515 in 2019 to $722 in 2022. This rise in rent prices could be attributed to increased demand for rental properties or overall neighborhood improvements.
Looking at the most recent data, average home prices in Pendleton Heights continued to rise, reaching $236,288 in 2023 and $254,475 in 2024. This represents a 9.9% increase from 2022 to 2024. Concurrently, federal interest rates have increased significantly, standing at 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends in the neighborhood.
Applying predictive models to forecast 5-year trends, we anticipate continued growth in both average home prices and rent prices in Pendleton Heights. Based on the historical data and current market conditions, average home prices could potentially reach around $300,000 by 2029. Average rent prices may also continue their upward trajectory, potentially approaching $900 per month in the same timeframe. However, these projections are subject to various economic factors and local market conditions.
In summary, Pendleton Heights has experienced a complex interplay between homeownership rates, average home prices, and rental market dynamics. The neighborhood has seen substantial appreciation in home values, with a recent uptick in homeownership despite rising prices. Rental rates have fluctuated but generally trended upwards, with significant increases in recent years. The impact of federal interest rates on homeownership has been evident, particularly in the post-2020 period. As the neighborhood continues to evolve, these trends will likely shape its future housing landscape, potentially influencing its demographic composition and overall character.
