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Rising Home Values and Shifting Ownership in Unity Ridge: 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
Unity Ridge, a neighborhood in Kansas City, Missouri, has experienced significant changes in its real estate market and demographic composition over the past decade. The area has witnessed a notable decline in homeownership rates, coupled with a steady increase in average home prices and fluctuating rental patterns. These trends have reshaped the neighborhood's character and economic landscape.
From 2013 to 2022, Unity Ridge saw a dramatic shift in its homeownership rate. In 2013, 85% of residential properties were owner-occupied, but by 2022, this figure had dropped to 52%, representing a 33 percentage point decrease. Conversely, average home prices in the area demonstrated a steady upward trajectory. The average home price rose from $275,112 in 2013 to $475,130 in 2022, marking a substantial 72.7% increase over the nine-year period.
The inverse relationship between homeownership rates and average home prices suggests that rising property values may be making homeownership less attainable for some residents. This trend coincides with fluctuations in federal interest rates, which have played a role in shaping homeownership patterns. For instance, the period from 2013 to 2015 saw relatively stable homeownership rates (85% to 83%) when interest rates were at historic lows (0.11% to 0.13%). However, as interest rates began to rise more significantly from 2016 onwards, reaching 1.68% by 2022, the homeownership rate declined more rapidly, dropping to 52% by 2022.
The renter population in Unity Ridge has grown considerably, mirroring the decline in homeownership. The percentage of renter-occupied units increased from 14% in 2013 to 48% in 2022, more than tripling over nine years. Average rent prices have shown volatility but with an overall upward trend. In 2013, the average rent was $1,373, which decreased to $890 in 2014 before rising again to reach $1,275 in 2022. This represents a net decrease of 7.1% from 2013 to 2022, despite the overall upward trajectory. The population growth from 899 in 2013 to 1,104 in 2022 likely contributed to the increased demand for rental properties.
As of 2024, the average home price in Unity Ridge has reached $497,719, showing continued appreciation from the 2022 figure. This occurs in a high-interest rate environment, with the federal interest rate at 5.33% in 2024, significantly higher than the 1.68% rate in 2022. The 2023 average home price was $486,493, indicating a year-over-year increase of 2.3% from 2023 to 2024, despite the elevated interest rates.
Looking ahead, predictive models suggest that average home prices in Unity Ridge may continue to rise over the next five years, albeit at a potentially slower rate due to the current high-interest rate environment. Average rent prices are also expected to increase, driven by the growing renter population and overall housing demand in the area.
In summary, Unity Ridge has experienced a significant shift from a predominantly owner-occupied neighborhood to one with a more balanced mix of owners and renters. The inverse relationship between rising home prices and declining homeownership rates, influenced by fluctuating interest rates, has been a defining characteristic of the local real estate market. As the neighborhood continues to evolve, these trends are likely to shape its demographic and economic landscape in the coming years.
