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Rising Home Values and Low Ownership in Old Westport: A Decade of Rental Dominance
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
Old Westport, a vibrant neighborhood in Kansas City, Missouri, has experienced significant shifts in its housing market over the past decade. This area, known for its dynamic urban atmosphere, has seen fluctuating trends in homeownership rates, average home prices, and average rent prices, reflecting the evolving nature of urban living in Kansas City. The homeownership rate in Old Westport has shown considerable volatility, ranging from a low of 3% in 2015 to a high of 10% in 2019. This fluctuation coincides with notable changes in average home prices. In 2010, the average home price in Old Westport was $155,319. By 2022, it had increased significantly to $265,919, representing a 71% rise over 12 years. Despite this substantial increase in home values, the homeownership rate remained relatively low, ending at 9% in 2022.
The relationship between federal interest rates and homeownership rates in Old Westport presents an intriguing pattern. In 2013, when the federal interest rate was 0.11%, the homeownership rate was 9%. As interest rates remained low, hovering around 0.1% to 0.4% from 2014 to 2016, homeownership rates actually decreased, reaching a low of 3% in 2015. This suggests that factors beyond interest rates, such as local market conditions or demographic shifts, may have played a more significant role in homeownership trends in this neighborhood.
Renter occupancy has been the dominant housing trend in Old Westport, consistently above 90% throughout the observed period. The average rent prices have shown some volatility, with notable increases and decreases. In 2013, the average rent was $910, which increased to $1,070 in 2015, representing a 17.6% rise in just two years. However, by 2022, the average rent had decreased to $694, a 35% drop from its peak. This decrease in rent prices occurred despite the neighborhood's population remaining relatively stable, fluctuating between 963 and 1,405 residents over the years.
Looking at the most recent data, the average home price in Old Westport rose to $273,048 in 2023 and further increased to $285,468 in 2024. This represents a 7.4% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends in the neighborhood.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Old Westport will continue to rise, potentially reaching around $325,000 by 2029. However, this growth rate may slow compared to previous years due to higher interest rates. Average rent prices are expected to stabilize and potentially increase moderately, possibly reaching $800-$850 per month by 2029, assuming economic conditions remain stable and the neighborhood maintains its appeal to renters.
In summary, Old Westport has demonstrated a strong rental market with consistently high renter occupancy rates. Despite significant increases in average home prices, homeownership rates have remained relatively low. The neighborhood has shown resilience in maintaining its population despite fluctuations in housing costs. The recent rise in interest rates, coupled with increasing home prices, may continue to challenge potential homebuyers in the coming years, potentially reinforcing the area's status as a primarily renter-occupied neighborhood.
