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Robandee South: Home Values Soar as Ownership Plummets in Kansas City Neighborhood
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Home Values Soar as Ownership Declines in Robandee South Robandee South, a neighborhood in Kansas City, Missouri, has experienced significant changes in its real estate market over the past decade. This area has seen a dramatic shift in homeownership rates and substantial increases in property values, reflecting broader economic trends and local market conditions. From 2013 to 2022, Robandee South underwent a notable transformation in its housing landscape. The homeownership rate dropped from 76% to 32%, while average home prices surged from $39,222 to $145,268, marking a 270% increase. This inverse relationship between homeownership rates and home prices suggests that rising property values may have made homeownership less accessible, transforming Robandee South into a predominantly renter-occupied community.
Federal interest rates have played a crucial role in shaping these trends. Between 2013 and 2016, when interest rates were historically low (0.11% to 0.40%), homeownership rates remained relatively stable at 56-76%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined more sharply. This trend aligns with the principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The renter population in Robandee South grew substantially from 24% in 2013 to 68% in 2022. This shift coincided with a steady increase in average rent prices, rising from $1,107 in 2013 to $1,214 in 2022, a 9.7% increase over nine years. The area's population fluctuated during this period, peaking at 1,854 in 2016 before settling at 1,710 in 2022. The growing renter population and rising rent prices indicate increasing demand for rental properties in the area.
In 2023 and 2024, Robandee South's real estate market continued its upward trajectory. Average home prices reached $155,354 in 2023 and further increased to $160,389 in 2024, representing a 10.4% growth over two years. This rise occurred despite significantly higher federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for prospective homebuyers.
Predictive models suggest that both average home prices and rent prices in Robandee South are likely to continue their upward trend over the next five years. Average home prices could potentially reach around $185,000 by 2029, while average rent prices might approach $1,400 per month. These projections are based on historical trends and current market conditions.
In conclusion, Robandee South has transformed from a predominantly owner-occupied neighborhood to a renter-majority community over the past decade. This shift has been characterized by substantial increases in both average home prices and average rent prices. The interplay between federal interest rates, local market dynamics, and demographic changes has significantly influenced these trends. As the neighborhood continues to evolve, it will likely remain an attractive area for renters and investors, with potential challenges for aspiring homeowners due to rising property values and interest rates.
