The rental market in Kensington has shown some interesting patterns. The percentage of renters peaked at 56% in 2016 and 2017 but has since declined to 43% in 2022. Average rent prices have fluctuated over the years, with notable increases in certain periods. In 2013, the average rent was $886, rising to $963 in 2018. However, there was a significant jump to $1,093 in 2021, followed by a decrease to $929 in 2022. These fluctuations in rent prices and renter percentages may be influenced by changes in population density and the overall housing supply.

Looking at the most recent data, the average home price in Kensington reached $233,886 in 2023 and further increased to $237,383 in 2024. This continued upward trend in home prices occurs despite the Federal interest rate rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homebuying decisions and could potentially slow the rate of price increases.

Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in Kensington will continue to rise, albeit at a potentially slower rate due to higher interest rates. The average home price could reach approximately $270,000 by 2029. For rent prices, a moderate increase is expected, potentially reaching an average of $1,200 per month by 2029, assuming stable economic conditions and continued population growth in the area.

In summary, Kensington has demonstrated a strong trend towards homeownership, with a significant increase in both ownership rates and average home prices over the past decade. The rental market has shown more variability, with fluctuating rent prices and a recent decrease in the percentage of renters. The neighborhood's real estate market appears resilient, with continued growth in home values even in the face of rising interest rates. These trends suggest a dynamic and evolving housing market in Kensington, reflecting broader economic factors and local demand for housing.