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Rising Home Values and Stable Ownership: Oak Park Southeast's Resilient Housing Market
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
Oak Park Southeast, a neighborhood in Kansas City, Missouri, has experienced significant changes in its housing market over the past decade. This area has seen notable increases in homeownership rates and substantial growth in average home prices, particularly in recent years. The homeownership rate in Oak Park Southeast has shown an overall upward trend, with some fluctuations. In 2013, the homeownership rate was 57%, which increased to 68% by 2022. This rise in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $15,050, which steadily climbed to $72,693 by 2022, representing a remarkable 383% increase over this period.
The relationship between federal interest rates and homeownership rates in Oak Park Southeast appears to follow general economic trends. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable, fluctuating between 54% and 58%. As interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), homeownership rates showed some variability but ultimately increased to 59% in 2018. Interestingly, the highest homeownership rate of 68% was recorded in 2022, despite a notable increase in interest rates to 1.68%, suggesting other factors may have influenced this trend.
Renter percentages in Oak Park Southeast have generally declined as homeownership increased. In 2013, the renter-occupied rate was 43%, which decreased to 32% by 2022. Average rent prices have shown some volatility over this period. In 2013, the average rent was $1,059, which fluctuated over the years, reaching a low of $908 in 2018 before rising again to $941 in 2022. These changes in rent prices don't show a consistent correlation with the declining renter percentages, indicating that other factors, such as local economic conditions or housing supply, may have played a role in shaping rental trends.
In 2023 and 2024, Oak Park Southeast has continued to see growth in average home prices. The average home price reached $77,882 in 2023 and further increased to $85,607 in 2024, representing a 10% year-over-year increase. This growth has occurred despite the Federal Reserve maintaining higher interest rates, with rates at 5.02% in 2023 and 5.33% in 2024.
Looking ahead, based on the historical data and recent trends, we can anticipate continued growth in average home prices in Oak Park Southeast over the next five years. If the current trajectory persists, average home prices could potentially reach or exceed $100,000 by 2029. Rent prices may also see moderate increases, potentially surpassing $1,200 per month within the same timeframe, assuming economic conditions remain favorable and demand for housing in the area continues to grow.
In summary, Oak Park Southeast has experienced a significant shift towards homeownership, accompanied by substantial increases in average home prices. Despite fluctuations in federal interest rates, the neighborhood has maintained a strong housing market, with recent years showing particularly robust growth in property values. The rental market, while showing some volatility, has generally seen a decrease in the proportion of renters. These trends suggest a transforming neighborhood with increasing property values and a growing preference for homeownership among residents.
