Rising Home Values and Shifting Ownership in Lea Manor, Kansas City
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
DATA SOURCE
Lea Manor, a vibrant neighborhood in Kansas City, Missouri, has experienced significant changes in its real estate landscape over the past decade. This analysis focuses on the fluctuations in homeownership rates, average home prices, and rental market trends, reflecting broader economic shifts and local market conditions.
From 2018 to 2022, Lea Manor witnessed a slight decline in homeownership rates, dropping from 83% to 76%. This change coincided with a substantial increase in average home prices, which rose from $230,632 to $313,073, marking a 35.7% increase over four years. The inverse relationship between these trends suggests that rising home prices may have made homeownership less attainable for some residents, contributing to the gradual decrease in ownership percentage.
Federal interest rates have played a crucial role in shaping homeownership trends in Lea Manor. Between 2013 and 2020, historically low interest rates ranging from 0.09% to 0.38% likely contributed to the relatively high homeownership rates observed during this period. However, as interest rates began to rise, reaching 1.68% in 2022, there was a corresponding decline in homeownership percentages, dropping from 80% in 2020 to 76% in 2022.
The rental market in Lea Manor has shown interesting trends as well. The percentage of renters increased from 17% in 2018 to 24% in 2022. Paradoxically, average rent prices decreased during this period, falling from $1,994 in 2018 to $1,651 in 2022, a 17.2% decrease. This decline in average rent prices, coupled with rising home prices, may have made renting a more attractive option for some residents, explaining the increase in the renter population.
In 2023 and 2024, the upward trend in average home prices in Lea Manor continued. The average home price reached $324,151 in 2023 and further increased to $342,703 in 2024, representing a 5.7% year-over-year growth. This rise occurred despite the significant increase in federal interest rates, which climbed to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for prospective homebuyers.
Looking ahead, predictive models suggest that average home prices in Lea Manor will continue to rise over the next five years, albeit at a more moderate pace. Average home prices are expected to potentially reach around $400,000 by 2029. Average rent prices, which have been decreasing, may stabilize and potentially show a slight upward trend, possibly reaching around $1,800 per month in the next five years.
In summary, Lea Manor has experienced a gradual shift towards a higher percentage of renters, driven by rising home prices and fluctuating interest rates. Despite this trend, homeownership remains strong at 76%. The neighborhood's real estate market has shown resilience, with consistently increasing average home prices even in the face of rising interest rates. As we move forward, Lea Manor is likely to maintain its appeal, balancing between homeownership opportunities and rental options, while continuing to see appreciation in property values.
