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Raymore, Missouri: Rising Home Values and Shifting Ownership in a Growing Suburban City
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
Raymore, Missouri, a growing suburban city in Cass County, is located approximately 20 miles southeast of Kansas City. Known for its family-friendly atmosphere and excellent school district, Raymore has experienced significant population growth and housing market changes over the past decade. The city has maintained a high homeownership rate, while average home prices and rent have shown notable increases. Homeownership in Raymore has remained consistently high, with a slight decline from 83% in 2013 to 80% in 2022. During this period, average home prices have shown a substantial increase. In 2013, the average home price was $168,515, which rose to $334,699 by 2022, representing a 98.6% increase over nine years. This upward trend in home prices, despite a small decrease in homeownership, suggests a strong demand for housing in the area.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, when interest rates were at historic lows (0.11% to 0.40%), homeownership in Raymore remained stable at around 82-83%. As interest rates began to rise from 2017 (1.00%) to 2019 (2.16%), homeownership rates in Raymore showed resilience, maintaining at 83%. However, the slight dip to 80% ownership in 2022 coincided with a sharp increase in interest rates to 1.68%, potentially making mortgages less affordable for some buyers.
Renter occupancy in Raymore has seen a modest increase, from 15% in 2013 to 20% in 2022. This trend has been accompanied by a rise in average rent prices. In 2013, the average rent was $1,316, which increased to $1,484 by 2022, a 12.8% increase over nine years. The growth in both renter percentage and rent prices suggests an increasing demand for rental properties, possibly driven by the city's population growth from 20,666 in 2013 to 24,731 in 2022.
Looking at the most recent data, the average home price in Raymore for 2023 was $336,900, showing a slight increase from 2022. In 2024, the average home price has risen further to $337,901. These increases come despite the federal interest rate climbing to 5.02% in 2023 and 5.33% in 2024, indicating a resilient housing market in Raymore.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Raymore will continue to rise, albeit at a potentially slower rate due to higher interest rates. We project average home prices could reach approximately $370,000 to $390,000 by 2029. Average rent prices are also expected to increase, potentially reaching $1,600 to $1,700 per month by 2029, driven by population growth and demand for housing.
In summary, Raymore has demonstrated a robust housing market with steadily increasing home values and rent prices over the past decade. Despite a slight decrease in homeownership rates, the city maintains a high proportion of owner-occupied homes. The recent increases in federal interest rates have not significantly dampened the housing market, suggesting strong underlying demand. As Raymore continues to grow, we expect to see further appreciation in both home values and rent prices, making it an attractive market for both homeowners and investors.
