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Wichita's Housing Market: Rising Home Values Amidst Stable Ownership in the Air Capital
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Wichita, the largest city in Kansas, is known for its aviation industry and as the "Air Capital of the World." This vibrant Midwestern city has experienced interesting trends in homeownership, average home prices, and average rent prices over the past decade. The overall trend shows a slight decrease in homeownership, while both average home prices and average rent prices have seen significant increases.
Homeownership in Wichita has shown slight fluctuations over the years, with a general trend of minor decline. In 2013, the homeownership rate was 60%, which increased to 61% in 2014. However, by 2021, it had decreased to 58%, before rebounding to 61% in 2022. This trend correlates interestingly with average home prices. In 2013, the average home price was $104,268, which steadily increased to $173,331 by 2022, representing a substantial 66% increase over this period. Despite the rising home prices, the homeownership rate has remained relatively stable, suggesting that Wichita residents have maintained their ability to purchase homes.
Federal interest rates have played a role in homeownership trends in Wichita. From 2013 to 2016, interest rates remained very low, hovering around 0.1% to 0.4%. During this period, homeownership rates were relatively stable at around 59-60%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, we saw some fluctuations in homeownership rates. However, the impact seems to have been limited, as the rate in 2022 (61%) was similar to that in 2013 (60%), despite the significant increase in interest rates.
Renter percentages in Wichita have shown a slight upward trend, mirroring the minor decline in homeownership. In 2013, 40% of residents were renters, which increased to 42% by 2021, before decreasing to 39% in 2022. Average rent prices have seen a consistent upward trend during this period. In 2013, the average rent was $699, which increased to $900 by 2022, representing a 29% increase. This rise in rent prices, coupled with the city's population growth from 386,558 in 2013 to 396,205 in 2022, suggests a growing demand for rental properties in Wichita.
Looking at the most recent data, average home prices in Wichita continued their upward trajectory, reaching $187,364 in 2023 and $194,568 in 2024. This represents a significant 12% increase from 2022 to 2024. Concurrently, federal interest rates have also risen substantially, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact homeownership rates and housing affordability in the coming years.
Applying predictive models to forecast 5-year trends, we can expect average home prices in Wichita to continue their upward trajectory, potentially reaching around $230,000 by 2029. Average rent prices are also likely to increase, possibly surpassing $1,000 per month within the next five years if current trends persist.
In summary, Wichita's housing market has shown resilience and growth over the past decade. Despite rising home prices and recent increases in interest rates, homeownership rates have remained relatively stable. The rental market has seen steady growth in both demand and prices. As the city continues to grow and evolve, these trends suggest a dynamic and competitive housing market in the coming years, with potential challenges in affordability for both homeowners and renters.
