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Rising Home Values and Ownership Dynamics in Zip Code 66204: Overland Park's Real Estate Evolution
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
Zip code 66204, located in Overland Park, Kansas, has experienced dynamic shifts in homeownership, average home prices, and average rent prices over the past decade. This area has seen a general trend of increasing property values and rent costs, with fluctuations in the balance between owner-occupied and renter-occupied housing units.
The ownership percentage in zip code 66204 has shown some variability over the years. In 2013, the homeownership rate was 51%, which increased to 54% in 2015. However, it then decreased to 48% in 2016 and 2019. By 2022, the ownership rate had risen slightly to 51%. Concurrently, average home prices in the area have shown a consistent upward trend. In 2013, the average home price was $132,278, which steadily increased to $258,383 by 2022, representing a substantial 95% increase over this period.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership rates in the zip code remained relatively stable. However, as interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), we observed a slight decline in homeownership rates, dropping from 49% to 48%. This aligns with the general trend that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
Renter percentages in zip code 66204 have generally mirrored the inverse of homeownership rates. In 2013, the renter-occupied percentage was 48%, which decreased to 45% in 2015 before rising to 51% in 2016 and 2019. By 2022, it had settled at 49%. Average rent prices have shown a steady increase over this period. In 2013, the average rent was $1,033, which rose to $1,200 by 2022, representing a 16% increase. This upward trend in rent prices occurred despite fluctuations in the renter population, suggesting strong demand for rental properties in the area.
In 2023, the average home price in zip code 66204 reached $278,441, with interest rates at 5.02%. Moving into 2024, we see a further increase in average home prices to $292,484, while interest rates have risen slightly to 5.33%. This continued appreciation in home values, despite higher interest rates, indicates robust demand in the local real estate market.
Looking ahead, predictive models suggest that both average home prices and rent prices in zip code 66204 are likely to continue their upward trajectory over the next five years. Home prices are projected to increase by approximately 3-5% annually, potentially reaching around $340,000 by 2029. Average rent prices are expected to rise at a similar rate, possibly reaching $1,400 per month in the same timeframe.
In summary, zip code 66204 has demonstrated a resilient and growing real estate market. The area has seen significant appreciation in home values and steady increases in rent prices. While homeownership rates have fluctuated, they have remained relatively stable around the 50% mark. The consistent rise in both home prices and rents, even in the face of varying interest rates, suggests a strong underlying demand for housing in this Overland Park neighborhood.
