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Rising Home Values and Shifting Ownership in Zip Code 66109: A Decade of Change in Kansas City, Kansas
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
Zip code 66109, located in Kansas City, Kansas, has experienced significant changes in its housing market over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 66109 has shown a gradual decline from 2013 to 2022, with some fluctuations. In 2013, the homeownership rate stood at 85%, but by 2022, it had decreased to 80%. This decline coincided with a substantial increase in average home prices. In 2013, the average home price was $146,112, which rose steadily to $291,949 by 2022, representing a 100% increase over this period. This inverse relationship suggests that rising home prices may have made homeownership less accessible for some residents.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, interest rates remained low, hovering around 0.1-0.4%. During this period, homeownership rates in zip code 66109 remained relatively stable, ranging from 82% to 85%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), we observed a concurrent decline in homeownership rates, which dropped to 78% by 2019. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
Renter percentages in zip code 66109 have shown an overall increase from 15% in 2013 to 20% in 2022, mirroring the decline in homeownership. Average rent prices have also experienced an upward trend, rising from $1,396 in 2013 to $1,549 in 2022, an 11% increase. This increase in both renter percentages and average rent prices occurred alongside population growth, with the population rising from 22,944 in 2013 to 27,804 in 2022. The growing population may have contributed to increased demand for rental properties, supporting both higher renter percentages and rising rent prices.
In 2023 and 2024, the housing market in zip code 66109 continued to evolve. The average home price reached $303,270 in 2023 and further increased to $314,884 in 2024, representing a 3.8% year-over-year growth. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024. These high interest rates, not seen since the early 2000s, are likely to impact homebuying decisions and potentially slow down the pace of home price appreciation.
Looking ahead, predictive models suggest a continued upward trend in both average home prices and rent prices over the next five years, albeit at a potentially slower rate due to high interest rates. Average home prices in zip code 66109 are projected to increase by approximately 2-3% annually, potentially reaching around $355,000 by 2029. Average rent prices are expected to grow at a similar rate, potentially reaching $1,700 by 2029.
In summary, zip code 66109 has experienced a gradual shift towards more renters and fewer homeowners over the past decade, driven by rising home prices and fluctuating interest rates. The area has seen substantial appreciation in home values and moderate increases in rent prices, supported by population growth. As we move forward, the interplay between interest rates, population trends, and housing supply will continue to shape the local real estate market.
