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Sterling Acres: Rising Home Values and Declining Ownership in a 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
Sterling Acres, a neighborhood in Kansas City, Missouri, has experienced significant changes in its housing market over the past decade. The community has witnessed a notable trend of decreasing homeownership rates alongside a substantial increase in average home prices. From 2013 to 2022, the homeownership rate in Sterling Acres declined from 80% to 59%, while the average home price rose dramatically from $76,547 to $189,422, marking a 147% increase.
The relationship between federal interest rates and homeownership rates in Sterling Acres aligns with established patterns. During the period of historically low interest rates from 2013 to 2016 (ranging from 0.11% to 0.40%), homeownership rates remained high, reaching a peak of 91% in 2018. However, as interest rates began to climb more significantly from 2017 onwards, eventually reaching 1.68% by 2022, homeownership rates started to decline, dropping to 59% in 2022.
The rental market in Sterling Acres has also shown interesting trends. As homeownership rates decreased, the percentage of renters increased from 20% in 2013 to 40% in 2022. Surprisingly, despite this increase in renters, average rent prices have fluctuated and generally decreased. In 2013, the average rent was $1,297, which remained relatively stable until 2018 when it dropped to $805. By 2022, the average rent had further decreased to $762. This unexpected decline in average rent prices, despite an increase in the renter population, could be attributed to various factors including changes in housing supply or local economic conditions.
Recent data shows that the average home price in Sterling Acres continued to rise, reaching $198,662 in 2023 and $207,941 in 2024. This represents a 4.7% increase from 2022 to 2023, and a further 4.7% increase from 2023 to 2024. Concurrently, federal interest rates have increased significantly, rising to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and housing affordability in the neighborhood.
Applying predictive models to forecast 5-year trends, it's anticipated that average home prices in Sterling Acres will continue to rise, albeit at a potentially slower rate due to higher interest rates. If the current trajectory continues, average home prices could reach approximately $250,000 by 2029. Average rent prices, which have shown some volatility, may stabilize or increase slightly as demand for rentals potentially grows due to decreased homeownership accessibility.
In summary, Sterling Acres has experienced a significant shift in its housing landscape over the past decade. The neighborhood has seen a substantial increase in average home prices coupled with a decline in homeownership rates. This trend has been influenced by various factors, including changes in federal interest rates. The rental market has expanded, although average rent prices have shown some unexpected declines. As the community moves forward, it will be crucial to monitor how these trends evolve, particularly in light of recent increases in both home prices and interest rates.
