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Rising Home Values and Stable Ownership in West Plaza: A Decade of Housing Trends
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
West Plaza, a vibrant neighborhood in Kansas City, Missouri, has experienced significant changes in its housing market over the past decade. This area, known for its mix of residential and commercial spaces, has shown resilience and growth in property values despite relatively stable homeownership rates. From 2013 to 2022, West Plaza's homeownership rate remained steady, fluctuating between 32% and 35%. However, average home prices saw a substantial increase of 71% over 12 years, rising from $143,846 in 2010 to $246,291 in 2022. This significant appreciation in home values did not correspond with a notable increase in homeownership, suggesting that factors such as income levels or personal preferences may have influenced ownership decisions more than property values alone.
The impact of federal interest rates on homeownership in West Plaza has been notable. During the period of historically low interest rates between 2020 and 2021 (0.38% and 0.08% respectively), the neighborhood experienced a slight increase in homeownership from 32% in 2019 to 35% in 2020. However, this uptick was temporary, as ownership rates returned to 33% in 2021 despite continued low interest rates, indicating that local factors may have offset the potential advantages of affordable financing.
Renter occupancy has consistently dominated the housing tenure in West Plaza, ranging from 65% to 68% between 2013 and 2022. Average rent prices steadily increased during this period, rising from $990 in 2013 to $1,233 in 2022, a 24.5% increase. This rise in rent prices coincided with population growth, from 3,914 residents in 2013 to 4,250 in 2022, suggesting that increased demand for rental housing may have contributed to the upward pressure on rents.
In recent years, West Plaza's housing market has continued to demonstrate strength. The average home price reached $250,274 in 2023 and further increased to $262,426 in 2024. This continued appreciation occurred despite a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. The persistent climb in home values, even in the face of higher interest rates that typically make mortgages more expensive, indicates strong underlying demand for housing in the area.
Looking to the future, predictive models suggest that both average home prices and rent prices in West Plaza are likely to continue their upward trajectory over the next five years. Home prices are projected to increase by approximately 3-4% annually, potentially reaching around $305,000 by 2029. Average rent prices are expected to rise at a similar rate, potentially surpassing $1,400 per month within the same timeframe.
In conclusion, West Plaza has demonstrated resilience in its housing market, with steadily increasing home values and rent prices despite fluctuations in interest rates and a consistently high proportion of renters. The neighborhood's ability to maintain growth in both owner-occupied and rental markets suggests a strong overall demand for housing in this area of Kansas City. As the community continues to evolve, these trends indicate that West Plaza will likely remain an attractive location for both homeowners and renters, with property values and rental rates reflecting its desirability.
