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Roanoke's Rising Home Values and Shifting Ownership Patterns: A Decade of Change
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
Roanoke, a vibrant neighborhood in Kansas City, Missouri, has experienced significant fluctuations in homeownership rates and property values over the past decade. Known for its charming blend of residential and commercial spaces, the area has seen a general trend of increasing average home prices, while ownership percentages have varied considerably. Average rent prices have shown more modest changes, with some volatility in recent years.
The relationship between homeownership rates and average home prices in Roanoke reveals an interesting dynamic. In 2013, the ownership rate stood at 46%, with an average home price of $270,329. As home prices steadily increased, reaching $331,340 by 2016, the ownership rate dropped to 38%. However, a reversal occurred in subsequent years. By 2020, despite average home prices climbing to $414,284, the ownership rate surged to 63%. This trend continued into 2021, with ownership peaking at 67% while average home prices reached $454,179. Interestingly, 2022 saw a significant shift, with ownership rates dropping back to 50% even as average home prices hit $511,009.
Federal interest rates have played a role in these homeownership trends. The period from 2013 to 2015 saw historically low interest rates, ranging from 0.11% to 0.13%. Despite these favorable borrowing conditions, homeownership in Roanoke initially declined. However, as interest rates began to rise gradually from 2016 (0.4%) to 2019 (2.16%), homeownership rates in the neighborhood started to increase. This counterintuitive trend suggests that other local factors, such as neighborhood development or changing demographics, may have had a stronger influence on homeownership than interest rates alone.
Renter percentages and average rent prices in Roanoke have shown their own distinct patterns. In 2013, 54% of residents were renters, with an average rent of $704. The renter percentage peaked at 62% in 2015 and 2016, despite a decrease in average rent to $639 in 2015. Interestingly, as the renter percentage began to decline from 2017 onwards, average rent prices started to increase. By 2019, the renter percentage had dropped to 48%, while average rent rose to $709. The most recent data from 2022 shows a balanced 50% renter occupancy, with average rent at $706.
Looking at the most recent data, 2023 saw average home prices in Roanoke reach $520,077, with federal interest rates at 5.02%. In 2024, average home prices have further increased to $544,531, while interest rates have risen slightly to 5.33%. This continued appreciation in home values, coupled with higher interest rates, may impact affordability and future homeownership trends in the neighborhood.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Roanoke will continue to rise, potentially reaching around $650,000 by 2029. This projection is based on the consistent upward trajectory observed over the past decade. For average rent prices, we expect a more moderate increase, potentially reaching approximately $800 by 2029, assuming the trend of gradual rent appreciation continues.
In summary, Roanoke has demonstrated remarkable resilience and growth in its housing market. The neighborhood has experienced significant increases in average home prices, with periods of both rising and falling homeownership rates. Rent prices have shown more stability, with recent years indicating a trend towards higher rents. The interplay between these factors, along with broader economic conditions, will continue to shape the housing landscape of this dynamic Kansas City neighborhood in the coming years.
