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Red Ridge South: Rising Home Values and Ownership Amid Economic Shifts
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
Red Ridge South, 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, average home prices, and rental costs, reflecting its growing desirability and changing demographics. The homeownership rate in Red Ridge South has shown a remarkable recovery in recent years. After declining from 23% in 2013 to 16% in 2017, it rebounded strongly to reach 32% by 2022. This increase in homeownership coincided with a substantial rise in average home prices, which nearly doubled from $156,957 in 2013 to $300,839 in 2022, representing a 91.7% increase over this period. The relationship between federal interest rates and homeownership rates in Red Ridge South has followed expected trends. As interest rates remained low between 2013 and 2021, ranging from 0.08% to 1.83%, the neighborhood experienced a gradual increase in homeownership. The most significant jump occurred between 2019 and 2022, when the homeownership rate increased from 20% to 32%, coinciding with historically low interest rates during this period.
Renter percentages in Red Ridge South have fluctuated over the years, showing a general downward trend as homeownership increased. In 2013, 67% of the neighborhood's housing units were renter-occupied. This figure peaked at 75% in 2014 before gradually declining to 68% in 2022. Despite the decrease in the proportion of renters, average rent prices have shown a steady upward trajectory, rising from $961 in 2013 to $1,022 in 2022, an increase of 6.3%. This trend suggests that while fewer units are being rented, the demand for rental properties remains strong, potentially due to population growth or increased desirability of the neighborhood.
In 2023 and 2024, the housing market in Red Ridge South continued to evolve. The average home price reached $317,616 in 2023 and further increased to $331,086 in 2024, representing a 10% growth over two years. This rise occurred despite a significant increase in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024. These higher interest rates typically make mortgages more expensive, yet the continued rise in home prices suggests strong demand for housing in the area.
Looking ahead, predictive models suggest that the upward trend in both average home prices and rent prices is likely to continue over the next five years. Based on historical data and current market conditions, average home prices in Red Ridge South could potentially reach around $400,000 by 2029. Similarly, average rent prices might surpass $1,200 per month within the same timeframe. However, these projections are subject to various economic factors and local market conditions.
In summary, Red Ridge South has experienced a significant increase in homeownership rates and average home prices over the past decade, particularly since 2019. Despite rising interest rates, the housing market remains robust, with continued growth in property values. The rental market, while comprising a smaller percentage of housing units, has also seen steady price increases. These trends indicate a growing desirability of the neighborhood and suggest a positive outlook for both homeowners and investors in the Red Ridge South real estate market.
