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Rising Home Values and Shifting Ownership in Bridlespur: A Decade of Housing Market Transformation
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Bridlespur, a neighborhood in Kansas City, Missouri, has experienced notable shifts in its real estate landscape over the past decade. This area has maintained a predominantly owner-occupied housing market, with homeownership rates consistently above 85% throughout the observed period. However, the neighborhood has seen fluctuations in both average home prices and average rent prices, reflecting broader economic trends and local market dynamics.
The relationship between homeownership rates and average home prices in Bridlespur reveals an interesting pattern. In 2013, the homeownership rate stood at 95%, with an average home price of $155,458. As average home prices steadily increased, reaching $307,298 in 2022, there was a gradual decline in homeownership rates to 85%. This inverse relationship suggests that rising home prices may have made homeownership less accessible for some residents. For instance, between 2013 and 2022, average home prices nearly doubled, while the homeownership rate decreased by 10 percentage points.
Federal interest rates have played a significant role in shaping homeownership trends in Bridlespur. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%. During this time, homeownership rates remained high, between 93% and 97%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, there was a corresponding decline in homeownership rates to 85%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership by making mortgages more affordable.
The rental market in Bridlespur, although small, has shown notable changes. In 2013, only 5% of housing units were renter-occupied, with an average rent of $873. By 2022, the percentage of renters had increased to 15%, and the average rent had risen to $1,188. This represents a 36% increase in average rent prices over nine years. The growing renter population could be attributed to the rising home prices, which may have priced out some potential buyers, pushing them into the rental market.
In 2023 and 2024, Bridlespur continued to see growth in average home prices. The average home price reached $322,278 in 2023 and further increased to $334,557 in 2024. This represents a 4.9% year-over-year increase from 2022 to 2023, and a 3.8% increase from 2023 to 2024. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates in the neighborhood.
Looking ahead, based on historical trends and current market conditions, we can project potential scenarios for the next five years. If the current trajectory continues, average home prices in Bridlespur could potentially reach around $390,000 by 2029, assuming an average annual growth rate of 3-4%. Average rent prices, which have shown more volatility, might stabilize around $1,400-$1,500 per month, factoring in historical fluctuations and the relationship with home prices.
In summary, Bridlespur has experienced a gradual shift from an overwhelmingly owner-occupied neighborhood to one with a slightly more diverse housing tenure mix. The rise in average home prices, coupled with increasing interest rates, has likely contributed to a small but noticeable increase in the renter population. Despite these changes, Bridlespur remains predominantly owner-occupied, with home prices continuing to appreciate, suggesting ongoing demand for homeownership in this Kansas City neighborhood.
