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Rising Home Values and Shifting Ownership in Kansas City's 64116 Zip Code: A Decade of Change
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 64116, located in Kansas City, Missouri, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This diverse urban area has shown a clear shift towards renting, with a corresponding rise in both home values and rental costs.
The homeownership rate in zip code 64116 has generally declined from 2013 to 2022. In 2013, 45% of housing units were owner-occupied, but by 2022, this figure had dropped to 40%. During this same period, average home prices in the area increased substantially. In 2013, the average home price was $104,419, and by 2022, it had risen to $226,355, representing a 116.8% increase over nine years.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable around 43-45%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined to 40%. This trend suggests that rising interest rates may have contributed to the decrease in homeownership, as higher borrowing costs can make purchasing a home less affordable for potential buyers.
Conversely, the percentage of renters in zip code 64116 has increased from 52% in 2013 to 60% in 2022. This shift towards renting coincides with a steady increase in average rent prices. In 2013, the average rent was $914, and by 2022, it had risen to $981, an increase of 7.3% over nine years. The population in the zip code has also grown during this period, from 15,498 in 2013 to 17,398 in 2022, which may have contributed to the increased demand for rental properties and the subsequent rise in rent prices.
Looking at the most recent data, the average home price in zip code 64116 reached $239,929 in 2023 and further increased to $250,382 in 2024. This represents a 10.6% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These high interest rates may continue to impact homeownership rates in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 64116 will continue to rise, potentially reaching around $300,000 by 2029. Average rent prices are also expected to increase, potentially surpassing $1,100 per month within the same timeframe. These projections are based on the consistent upward trends observed in both home values and rental costs over the past decade.
In summary, zip code 64116 has experienced a clear shift towards renting, with homeownership rates declining from 45% to 40% between 2013 and 2022. This trend has occurred alongside substantial increases in both average home prices and average rent costs. The area has seen significant population growth, which has likely contributed to the rising demand for housing and subsequent price increases. With recent data showing continued growth in home values and high interest rates, it's likely that these trends will persist in the coming years, potentially leading to further increases in both home prices and rental costs.
