Loading Content...
Rising Home Values and Shifting Ownership in Raytown, Missouri: A Decade of Housing Market Evolution
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Raytown, Missouri, a suburban city southeast of Kansas City, has experienced significant changes in its housing market over the past decade. With a population of 36,551 in 2022 and an area of 9.97 square miles, Raytown offers a mix of urban conveniences and suburban living. The city has seen notable shifts in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics.
From 2013 to 2022, Raytown's homeownership rate declined from 69% to 65%, coinciding with a substantial increase in average home prices. In 2013, the average home price in Raytown was $67,911, but by 2022, it had risen dramatically to $180,669, representing a 166% increase over nine years. This significant appreciation in home values likely contributed to the decrease in homeownership, as rising prices may have made purchasing a home more challenging for some residents.
The relationship between federal interest rates and homeownership rates in Raytown follows an expected pattern. During periods of lower interest rates, such as from 2013 to 2016 when rates remained below 0.5%, homeownership rates in Raytown remained relatively stable around 67-68%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined to 65%. This trend suggests that higher interest rates may have made mortgages less affordable, potentially discouraging home purchases.
As homeownership rates decreased, the percentage of renters in Raytown increased from 31% in 2013 to 35% in 2022. Interestingly, average rent prices in Raytown showed relatively modest growth compared to home prices. In 2013, the average rent was $1,008, and by 2022 it had only increased to $1,006, with some fluctuations in between. The highest average rent was recorded in 2021 at $1,072. This relatively stable rent market, combined with rising home prices, may have made renting a more attractive option for some residents, contributing to the increase in the renter population.
In 2023 and 2024, Raytown's housing market continued to evolve. The average home price in 2023 reached $192,591, a further 6.6% increase from 2022. In 2024, the average home price rose to $201,044, marking a 4.4% increase from the previous year. Concurrently, federal interest rates climbed to 5.02% in 2023 and 5.33% in 2024, reaching levels not seen since before the 2008 financial crisis. These higher interest rates could potentially impact homebuying activity in Raytown.
Looking ahead, predictive models suggest that Raytown's housing market may continue to see moderate growth in both home prices and rents over the next five years. Average home prices are projected to increase by approximately 3-4% annually, potentially reaching around $235,000 by 2029. Average rent prices are expected to grow at a slightly slower rate of 2-3% per year, potentially reaching about $1,150 by 2029.
In summary, Raytown has experienced a significant appreciation in home values over the past decade, coinciding with a modest decline in homeownership rates. The rental market has remained relatively stable in terms of prices, though the proportion of renters has increased. Recent years have seen continued growth in home prices alongside rising interest rates, which may influence future homebuying trends. As Raytown moves forward, the balance between homeownership and renting is likely to continue evolving in response to these market dynamics.
