Zip Code 64117: Average Home Values and Ownership Trends in Kansas City's Resilient Housing Market
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Property Value
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Percent Owner Occupied
Housing Prices
Median Rent
Population
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Zip code 64117, located in Kansas City, Missouri, has experienced notable shifts in its housing market over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics. The homeownership rate in zip code 64117 has shown moderate variability from 2013 to 2022. In 2013, the homeownership rate stood at 55%. It dipped to its lowest point of 51% in 2018 before rebounding to 56% in 2022. This upward trend in recent years suggests a growing preference for homeownership in the area. Correspondingly, average home prices have seen a significant increase. In 2013, the average home price was $71,085. By 2022, it had risen dramatically to $179,698, representing a 152.8% increase over this period. This substantial appreciation in home values may have contributed to the recent uptick in homeownership rates, as more residents may have been motivated to invest in property.
The relationship between federal interest rates and homeownership rates in zip code 64117 follows a generally inverse pattern. For instance, when interest rates were at historic lows between 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates increased from 54% to 56%. This aligns with the well-established trend that lower interest rates tend to encourage homeownership by making mortgages more affordable.
Renter percentages in zip code 64117 have fluctuated in tandem with homeownership rates. The percentage of renters peaked at 49% in 2018 when homeownership was at its lowest. As of 2022, the renter percentage stood at 44%. Average rent prices have steadily increased over the years, rising from $767 in 2013 to $950 in 2022, a 23.9% increase. This trend in rising rents has occurred despite fluctuations in the renter population, suggesting strong demand for rental properties in the area.
In 2023 and 2024, the housing market in zip code 64117 continued its upward trajectory. The average home price reached $193,612 in 2023 and further increased to $202,447 in 2024, representing a 4.6% year-over-year growth. This appreciation occurred despite a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These figures indicate a resilient housing market in the face of higher borrowing costs.
Looking ahead, predictive models suggest that the upward trend in both average home prices and rent prices is likely to continue in zip code 64117 over the next five years. Based on historical data and current market conditions, average home prices could potentially reach around $240,000 by 2029. Similarly, average rent prices might increase to approximately $1,100 per month. However, these projections are subject to various economic factors and local market conditions.
In summary, zip code 64117 has demonstrated a robust housing market characterized by increasing homeownership rates, rapidly appreciating home values, and steadily rising rent prices. The area has shown resilience to rising interest rates, with continued growth in home prices. The interplay between homeownership rates, rental demand, and price appreciation suggests a dynamic and evolving housing landscape in this Kansas City neighborhood.
