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Rising Home Values and Shifting Ownership Patterns in Kansas City's Zip Code 64165
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 64165, located in Kansas City, Missouri, has experienced significant changes in its real estate landscape over the past decade. This area has seen notable 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 64165 has shown a general trend of decline since 2018, despite maintaining relatively high levels. In 2018, the area boasted an impressive 97% homeownership rate. However, this figure decreased to 82% by 2022, representing a 15 percentage point drop over four years. Interestingly, this decline in homeownership coincided with a substantial increase in average home prices. From 2019 to 2022, average home prices in the area rose from $313,569 to $406,253, marking a 29.6% increase.
The relationship between federal interest rates and homeownership rates in this zip code appears to follow established trends. As interest rates remained low from 2019 to 2021 (2.16% to 0.08%), homeownership rates initially stayed high but began to decline. This could be attributed to rising home prices potentially outpacing the benefits of low interest rates for some buyers. The slight increase in homeownership from 80% in 2020 to 82% in 2022 coincided with a moderate rise in interest rates to 1.68%, possibly indicating a rush to purchase before rates increased further.
Renter percentages in zip code 64165 have shown an inverse relationship to homeownership rates, naturally increasing as homeownership declined. The renter population grew from just 2% in 2018 to 17% in 2022. Interestingly, average rent prices experienced significant fluctuations during this period. Average rents peaked at $1,717 in 2015, then dramatically decreased to $1,084 in 2016, a 36.9% drop. Since then, average rents have shown a gradual increase, reaching $1,118 in 2022. This trend suggests that while the renter population has grown, the rental market has not seen proportional increases in average rent prices.
Looking at the most recent data, average home prices in zip code 64165 continued to rise in 2023 and 2024, reaching $414,922 and $423,727 respectively. This represents a 4.3% increase from 2022 to 2024. Concurrently, federal interest rates have significantly increased to 5.02% in 2023 and 5.33% in 2024, potentially impacting future homeownership trends in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 64165 will continue to rise, albeit at a potentially slower rate due to higher interest rates. We project average home prices could reach approximately $460,000 to $480,000 by 2029. Average rent prices are expected to show moderate growth, potentially reaching $1,200 to $1,300 per month in the same timeframe, assuming the rental market remains stable and population growth continues.
In summary, zip code 64165 has experienced a notable shift from an overwhelmingly owner-occupied area to one with a growing renter population. Despite this change, average home prices have shown strong appreciation, while average rent prices have remained relatively stable after significant earlier fluctuations. The interplay between federal interest rates, home prices, and local market dynamics will likely continue to shape the real estate landscape in this Kansas City neighborhood in the coming years.
