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Rising Home Values and Shifting Ownership in Westside South, Kansas City
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
Westside South, a neighborhood in Kansas City, Missouri, has experienced significant changes in its housing market over the past decade. The area has maintained a relatively stable homeownership rate while seeing substantial increases in average home prices. This analysis examines the trends in homeownership, housing prices, and rental market from 2013 to 2024, with projections for future developments. The homeownership rate in Westside South has fluctuated between 50% and 58% from 2013 to 2022. Despite rising average home prices, the homeownership rate has not shown a consistent decline. In 2016, when average home prices were $87,145, the homeownership rate stood at 53%. By 2022, even with average home prices reaching $183,641, the homeownership rate remained at 50%. This suggests that factors beyond home prices influence homeownership in the area.
Federal interest rates have played a role in homeownership trends in Westside South. In 2016, with interest rates at 0.4%, the homeownership rate was 53%. As interest rates increased to 1.83% in 2018, the homeownership rate rose to 58%, possibly due to anticipation of further rate increases. However, by 2022, with interest rates at 1.68%, the homeownership rate had decreased to 50%, indicating that other economic factors may have influenced this shift.
Renter percentages in Westside South have mirrored the homeownership trends, ranging from 42% to 50% between 2013 and 2022. Average rent prices have shown some volatility during this period. In 2013, the average rent was $1,151, which decreased to $1,008 in 2018 when the renter percentage was at its lowest (42%). By 2022, as the renter percentage increased to 50%, the average rent rose to $1,082. This suggests a potential correlation between higher renter demand and increased rent prices.
The most recent data shows that average home prices in Westside South continued to rise, reaching $185,796 in 2023 and $199,614 in 2024, representing a 7.4% increase from 2023 to 2024. Simultaneously, federal interest rates have climbed significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership rates and housing affordability in the neighborhood.
Applying predictive models to forecast 5-year trends, average home prices in Westside South are anticipated to continue appreciating, potentially reaching around $240,000 by 2029. This projection is based on the consistent upward trend observed since 2016. Average rent prices are also expected to increase moderately, possibly reaching approximately $1,300 by 2029, assuming current economic conditions and housing demand persist.
In summary, Westside South has demonstrated resilience in homeownership rates despite rising home prices. The relationship between federal interest rates and homeownership has been complex, with other factors likely influencing housing decisions. Renter percentages and average rent prices have shown some correlation, with increases in renter demand potentially driving up rental costs. The neighborhood's housing market appears to be on an upward trajectory, with both home prices and rents expected to continue rising in the coming years.
