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Rising Home Values and Shifting Ownership in St. Catherine's Gardens
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
St. Catherine's Gardens, a neighborhood in Kansas City, Missouri, has experienced significant changes in homeownership rates and housing prices over the past decade. This analysis examines the trends in ownership percentages, average home prices, and average rent prices from 2010 to 2024. The homeownership rate in St. Catherine's Gardens has shown a general downward trend. In 2013, 60% of residents were homeowners, but by 2022, this figure had decreased to 54%. Concurrently, average home prices in the neighborhood saw a substantial increase. In 2010, the average home price was $106,174, and by 2022, it had risen to $227,555, representing a 114% increase over 12 years. The relationship between federal interest rates and homeownership rates in St. Catherine's Gardens shows some correlation. As interest rates remained low from 2010 to 2015 (ranging from 0.1% to 0.18%), homeownership rates were relatively stable, hovering around 60%. However, as interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, homeownership rates started to decline, dropping to 54% by 2022. This trend aligns with the general expectation that lower interest rates encourage homeownership due to more affordable financing options.
Renter percentages in the neighborhood have shown an inverse relationship to homeownership rates, naturally increasing as homeownership declined. In 2013, 40% of residents were renters, and by 2022, this figure had risen to 46%. Average rent prices have also increased over time, though not as dramatically as home prices. In 2013, the average rent was $1,107, and by 2022, it had risen to $1,127, a modest 1.8% increase over nine years. The neighborhood's population has fluctuated over the years, potentially influencing rental market dynamics.
Looking at the most recent data, average home prices in St. Catherine's Gardens continued to rise in 2023 and 2024. In 2023, the average home price reached $239,195, and in 2024, it further increased to $251,414. This represents a 10.5% increase from 2022 to 2024. Concurrently, federal interest rates have also risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may potentially impact future homeownership rates and housing market dynamics in the neighborhood.
Based on the historical data and current trends, we can make some predictions for the next five years. Average home prices in St. Catherine's Gardens are likely to continue their upward trajectory, potentially reaching around $300,000 by 2029. However, the rate of increase may slow down due to higher interest rates and potential market saturation. Average rent prices, which have shown more stability, may see moderate increases, potentially reaching around $1,300 by 2029.
In summary, St. Catherine's Gardens has experienced a shift towards more renters and fewer homeowners over the past decade, coinciding with substantial increases in average home prices. The neighborhood has shown resilience in terms of population and housing demand, despite fluctuations. The recent sharp rise in interest rates, coupled with continued home price appreciation, may present challenges for potential homebuyers in the coming years, potentially further shifting the balance towards rentals in this evolving Kansas City neighborhood.
