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Union Hill's Rising Home Values and Shifting Ownership Trends: 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
Union Hill, a neighborhood in Kansas City, Missouri, has experienced significant changes in its housing market over the past decade. From 2013 to 2022, the area saw a notable decrease in homeownership rates, dropping from 51% to 42%. This decline coincided with a substantial increase in average home prices, which rose from $246,474 in 2013 to $401,753 in 2022, representing a 63% increase over nine years. The inverse relationship between homeownership rates and home prices suggests that rising property values may have made homeownership less attainable for some residents, leading to an increase in renting.
During this period, federal interest rates remained historically low, ranging from 0.08% to 1.83% between 2013 and 2021. Despite these favorable borrowing conditions, which typically encourage homeownership, Union Hill's ownership rates continued to decline. This trend indicates that other factors, such as rapidly appreciating home values, may have outweighed the benefits of low interest rates for potential buyers in the neighborhood.
As homeownership rates decreased, the percentage of renters in Union Hill increased from 49% in 2013 to 58% in 2022. The rental market experienced significant volatility during this time. Average rent prices peaked at $2,041 in 2019 before sharply declining to $1,189 in 2020, possibly due to the economic impacts of the COVID-19 pandemic. By 2022, average rent had rebounded to $1,406, still below the 2019 peak. This fluctuation in rent prices, combined with the steady increase in the renter population from 355 in 2013 to 512 in 2022, indicates a complex rental market responsive to both local and broader economic factors.
More recent data shows that the average home price in Union Hill continued its upward trajectory, reaching $412,161 in 2023 and $425,059 in 2024. This represents a further 5.8% increase from 2022 to 2024, indicating sustained demand and value appreciation in the neighborhood. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, marking a substantial shift from the low-rate environment of previous years. These higher rates may impact future homebuying activity and could potentially slow the rate of home price appreciation.
Predictive models suggest that average home prices in Union Hill are likely to continue their upward trend over the next five years, albeit possibly at a more moderate pace due to higher interest rates. Average rent prices are also expected to increase, potentially returning to and surpassing their 2019 peak, driven by the neighborhood's growing population and the ongoing shift towards renting.
In conclusion, Union Hill has experienced a clear trend of declining homeownership rates alongside rapidly appreciating home values over the past decade. The rental market has shown resilience and growth, despite fluctuations in average rent prices. With recent increases in both home values and interest rates, the neighborhood appears poised for continued evolution in its housing market dynamics, likely favoring a strong rental market while potentially presenting challenges for new homebuyers.
