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Royal Oaks: Rising Home Values and Resilient Ownership in a Dynamic 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
Royal Oaks, a neighborhood in Kansas City, Missouri, has demonstrated remarkable resilience in its housing market over the past decade. This suburban area has experienced significant fluctuations in homeownership rates and substantial increases in average home prices, while maintaining a generally high rate of owner-occupied housing. The interplay between these factors offers insights into the neighborhood's evolving real estate dynamics. From 2013 to 2022, Royal Oaks witnessed notable changes in its homeownership landscape. The ownership rate peaked at 89% in 2013, subsequently declining to 71% by 2018, before recovering to 84% in 2022. This trend coincided with a steady rise in average home prices, which increased from $108,226 in 2013 to $234,217 in 2022, marking a substantial 116% appreciation. Despite the initial decline in homeownership rates as prices rose, other factors eventually contributed to a resurgence in homeownership, even as prices continued to climb. Federal interest rates played a crucial role in shaping homeownership trends in Royal Oaks during this period. From 2013 to 2016, historically low interest rates ranging from 0.11% to 0.40% corresponded with gradually increasing home prices and relatively stable homeownership rates. As interest rates rose more significantly from 2017 (1.00%) to 2019 (2.16%), a temporary dip in homeownership rates was observed, reaching a low of 71% in 2018. However, the sharp decrease in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with a rebound in homeownership, which climbed back to 83% in 2020 and maintained a high level through 2022.
The rental market in Royal Oaks exhibited interesting patterns during this period. The percentage of renter-occupied housing increased from 11% in 2013 to a peak of 29% in 2018, before declining to 16% in 2022. Average rent prices did not always move in tandem with this trend. From 2013 to 2016, average rent rose significantly from $842 to $1,299, despite only a modest increase in the renter population. Interestingly, as the renter percentage peaked in 2018, average rent decreased to $907, suggesting a potential oversupply of rental units. By 2022, with the renter percentage back down to 16%, the average rent had stabilized at $857. Recent data indicates that the average home price in Royal Oaks has continued its upward trajectory, reaching $244,042 in 2023 and $256,087 in 2024. This represents a further 9.3% increase from 2022 to 2024. Notably, this price appreciation occurred despite a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. This suggests a strong underlying demand for homes in the area, potentially driven by factors such as local economic growth or neighborhood desirability. Predictive models forecasting 5-year trends anticipate that average home prices in Royal Oaks will continue to rise, albeit at a potentially slower rate due to higher interest rates. Projections suggest average home prices could reach approximately $300,000 by 2029. Average rent prices are expected to show moderate growth, potentially reaching around $950 by 2029, as the balance between homeownership and renting stabilizes. In conclusion, Royal Oaks has exhibited resilience in its housing market, with homeownership rates rebounding despite significant increases in average home prices. The neighborhood has shown sensitivity to federal interest rate changes, with lower rates generally corresponding to higher homeownership rates. The rental market has been more volatile, with periods of high rent prices not always aligning with higher renter percentages. As Royal Oaks moves forward, it appears poised for continued growth in property values, with a strong preference for homeownership among its residents.
