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Rising Home Values and High Ownership: Sunset Hill West's Real Estate Resilience
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Sunset Hill West: A Decade of Housing Market Evolution Sunset Hill West, a picturesque neighborhood in Kansas City, Missouri, has experienced significant changes in its housing market over the past decade. This area is characterized by exceptionally high homeownership rates and fluctuating property values. The neighborhood has consistently maintained a remarkably high percentage of owner-occupied homes, while average home prices and rent have shown notable increases over time.
Homeownership in Sunset Hill West has remained steadfast, with 99% to 100% of properties being owner-occupied from 2013 to 2022. This stability in homeownership coincides with a substantial increase in average home prices. In 2015, the average home price was $1,314,544, which steadily rose to $1,913,515 by 2022, representing a 45.6% increase over seven years. This trend suggests a strong correlation between the high rate of homeownership and the appreciation of property values in the area.
Federal interest rates have played a crucial role in shaping homeownership trends. From 2015 to 2022, interest rates fluctuated between 0.13% and 1.68%, generally remaining at historically low levels. These low rates likely contributed to maintaining the high homeownership rates in Sunset Hill West by making mortgages more affordable and attractive to potential buyers. The stability of homeownership percentages during this period, despite rising home prices, indicates that low interest rates may have offset the impact of increasing property values on affordability.
Renter percentages in Sunset Hill West have been consistently low, ranging from 0% to 1% between 2013 and 2022. Despite the minimal presence of renters, average rent prices have shown an upward trend. In 2013, the median rent was $1,285, which increased to $1,556 by 2022, representing a 21% rise over nine years. This increase in rent prices, despite the low renter population, may be attributed to the overall appreciation of property values in the area and the limited supply of rental units.
In 2023, the average home price in Sunset Hill West reached $1,942,060, and by 2024, it further increased to $2,036,967. This represents a 4.9% year-over-year increase, indicating continued strong growth in the local real estate market. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and property values in the neighborhood.
Looking ahead, based on historical trends and current market conditions, we can forecast that average home prices in Sunset Hill West are likely to continue their upward trajectory over the next five years. Assuming a conservative annual growth rate of 4%, we could see average home prices reaching approximately $2,477,000 by 2029. Similarly, if rent prices maintain their historical growth pattern of about 2% annually, we might expect average rents to increase to around $1,720 per month by 2029.
In summary, Sunset Hill West has demonstrated remarkable stability in its high homeownership rates, coupled with significant appreciation in property values. The neighborhood has weathered changes in federal interest rates while maintaining its character as a predominantly owner-occupied area. The consistent increase in both home prices and rents, despite minimal rental market activity, underscores the desirability and economic strength of this Kansas City neighborhood. As we move forward, Sunset Hill West appears poised for continued growth and stability in its housing market.
