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Rising Home Values and Fluctuating Ownership: The Story of Faireway Hills, Kansas City
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Faireway Hills, a neighborhood in Kansas City, Missouri, has experienced significant changes in its real estate market over the past decade. This analysis focuses on the fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Faireway Hills has shown a slight decline from 93% in 2013 to 89% in 2022. Concurrently, average home prices have increased substantially from $101,189 in 2013 to $226,260 in 2022, representing a 123.6% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less accessible for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in Faireway Hills. From 2013 to 2016, when interest rates were low (0.11% to 0.4%), the homeownership rate remained relatively stable. As interest rates rose more significantly from 2017 onwards, reaching 1.68% in 2022, the homeownership rate fluctuated but ultimately remained at 89%. This resilience in homeownership despite rising interest rates may indicate strong local demand for housing and a preference for ownership in this neighborhood.
The renter population in Faireway Hills has grown from 7% in 2013 to 11% in 2022, mirroring the slight decline in homeownership. Average rent prices have not shown a consistent upward trend during this period, decreasing slightly from $1,180 in 2013 to $1,174 in 2022, with fluctuations in between. The highest average rent of $1,525 was recorded in 2021. These variations in rent prices, coupled with the increasing renter population, suggest a complex rental market influenced by factors such as housing supply, local economic conditions, and changing demographics.
Recent data shows that the average home price in Faireway Hills continued to rise, reaching $232,196 in 2023 and $241,205 in 2024, a 6.6% increase from 2022 to 2024. Federal interest rates have also risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homeownership rates and property values in the neighborhood.
Predictive models forecast that average home prices in Faireway Hills will continue to rise, potentially reaching around $280,000 by 2029. This projection assumes relatively stable economic conditions. Average rent prices are predicted to increase moderately, potentially reaching $1,300-$1,400 per month by 2029. However, these projections could be influenced by various factors, including changes in local development, economic shifts, and demographic trends.
In conclusion, Faireway Hills has experienced a gradual shift towards a slightly higher proportion of renters, although it remains predominantly owner-occupied. The neighborhood has seen substantial appreciation in average home values, outpacing changes in average rent prices. The resilience of homeownership rates despite rising property values and interest rates suggests a strong local housing market. As the neighborhood continues to evolve, balancing affordability with the desirability of the area will likely be a key factor in shaping its future real estate landscape.
