Loading Content...
Zip Code 64113: Rising Home Values and Stable Ownership in Kansas City's Prosperous 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
Zip code 64113, located in Kansas City, Missouri, is a vibrant area known for its high homeownership rates and dynamic real estate market. Over the past decade, this zip code has maintained a consistently high percentage of owner-occupied housing, while experiencing significant growth in average home prices and fluctuating average rent prices.
The homeownership rate in zip code 64113 has remained remarkably stable, hovering around 93% from 2013 to 2022. This high rate of ownership coincides with a steady increase in average home prices. In 2013, the average home price was $310,483, and it rose consistently year over year, reaching $515,838 in 2022. This represents a substantial 66% increase over a nine-year period. The stability in homeownership rates, despite rising prices, suggests a strong and enduring demand for properties in this area.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 64113. From 2013 to 2016, interest rates remained exceptionally low, ranging from 0.11% to 0.40%. During this period, homeownership rates held steady at 93%, likely due to the favorable borrowing conditions. As interest rates began to rise more sharply from 2017 (1%) to 2019 (2.16%), there was a slight fluctuation in homeownership rates, with a peak of 95% in 2018. This suggests that even as borrowing became more expensive, the desire for homeownership in this zip code remained strong.
Renter percentages in zip code 64113 have remained relatively low, corresponding inversely to the high homeownership rates. From 2013 to 2022, the percentage of renters fluctuated between 4% and 8%. Interestingly, average rent prices showed significant volatility during this period. In 2013, the average rent was $1,559, which increased to $1,640 by 2015. However, there was a notable drop to $1,467 in 2016, followed by a sharp rise to $1,947 in 2018. By 2022, the average rent had settled at $1,697. These fluctuations in rent prices do not appear to have significantly impacted the overall low percentage of renters in the area, suggesting that other factors, such as the desirability of homeownership, may play a more crucial role in housing decisions in this zip code.
In 2023 and 2024, the upward trend in average home prices continued in zip code 64113. The average home price reached $524,373 in 2023 and further increased to $545,299 in 2024, representing a 4% year-over-year growth. This rise occurred despite a significant increase in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. The continued appreciation in home values, even in a high-interest rate environment, underscores the strong demand for properties in this area.
Looking ahead, based on historical trends and current market conditions, we can project future trends for average home and rent prices in zip code 64113. For home prices, assuming a continuation of the current growth rate, we might expect the average home price to reach approximately $660,000 by 2029. This projection takes into account the steady appreciation observed over the past decade, as well as the recent acceleration in price growth. For rent prices, given their historical volatility, a more conservative estimate would suggest average rents could range between $1,800 and $2,200 by 2029, depending on various economic factors and local market conditions.
In summary, zip code 64113 demonstrates a robust housing market characterized by high homeownership rates and steadily increasing property values. The area has shown resilience to fluctuations in interest rates and maintained its appeal to homeowners despite rising prices. The rental market, while smaller, has shown more variability in pricing. These trends suggest that 64113 will likely continue to be a desirable area for homeowners, with potential for further appreciation in property values in the coming years.
