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Village, Wichita: Rising Home Values and Ownership Trends in a Resilient Housing Market
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
The Village neighborhood in Wichita, Kansas, has undergone significant changes in its housing market over the past decade, characterized by rising home values and a strong trend towards homeownership. This small residential area has experienced notable fluctuations in both average home prices and ownership rates, reflecting broader economic trends and local market dynamics. The homeownership rate in the Village has shown a remarkable increase, particularly in recent years. From a stable rate of 73% in 2013, homeownership remained relatively constant until 2020. However, the period from 2020 to 2022 saw a dramatic rise, with the rate surging to an impressive 87% in 2022. This substantial increase of 14 percentage points in just two years indicates a significant shift towards owner-occupied housing in the neighborhood. Concurrent with this trend, average home prices in the Village have steadily risen. In 2013, the average home price was $185,827, and by 2022, it had increased to $296,745, representing a 59.7% increase over this period. The most substantial annual increase occurred between 2020 and 2021, with average home prices jumping from $245,291 to $273,168, an 11.4% rise in a single year.
The relationship between federal interest rates and homeownership rates in the Village appears to follow expected trends. From 2013 to 2020, when interest rates were generally low, hovering between 0.08% and 2.16%, homeownership rates remained relatively stable, ranging from 71% to 76%. However, as interest rates began to rise more significantly in 2022 to 1.68%, there was a notable surge in homeownership to 87%, possibly indicating a rush to purchase homes before rates increased further.
Conversely, the percentage of renters in the Village has decreased significantly, particularly in recent years. In 2013, renters occupied 27% of housing units, and this figure remained relatively stable until 2020. However, from 2020 to 2022, the renter percentage dropped sharply from 21% to just 13%. Interestingly, average rent prices have shown some volatility during this period. In 2013, the average rent was $1,108, which decreased to $938 in 2019, but then rose again to $1,017 in 2022. Despite the overall decrease in the renter population, the average rent has remained relatively high, possibly due to limited rental inventory in the neighborhood.
As of 2024, the average home price in the Village has continued to rise, reaching $312,622. This represents a 5.4% increase from the 2023 average of $303,334. Notably, federal interest rates have also increased significantly, standing at 5.33% in 2024, up from 5.02% in 2023. These higher interest rates may impact future homebuying trends in the neighborhood.
Looking ahead, based on historical trends and current market conditions, it's projected that average home prices in the Village will continue to increase over the next five years, albeit potentially at a slower rate due to higher interest rates. Average home prices could potentially reach around $350,000 by 2029. Rent prices are expected to remain stable or increase slightly, possibly reaching an average of $1,100 to $1,200 per month by 2029, assuming the trend of decreasing rental inventory continues.
In summary, the Village neighborhood has experienced a significant shift towards homeownership, with a corresponding increase in average home prices. The dramatic rise in homeownership rates, particularly from 2020 to 2022, coupled with steadily increasing home values, suggests a strong demand for owner-occupied housing in this area. The recent sharp increase in interest rates may influence future trends, potentially slowing the rate of home price appreciation and homeownership growth in the coming years.
