Loading Content...
Zip Code 64118: Dynamic Shifts in Home Values and Ownership in Kansas City, Missouri
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 64118, located in Kansas City, Missouri, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has seen a gradual shift in the balance between owners and renters, accompanied by notable fluctuations in property values and rental costs.
The homeownership rate in zip code 64118 has shown a slight decline over the years. In 2013, the area had a 62% homeownership rate, which decreased to 59% by 2022. This trend coincides with a substantial increase in average home prices. In 2013, the average home price was $113,863, but by 2022, it had risen dramatically to $234,507, representing a 106% increase over nine years. This sharp rise in home prices may have contributed to the slight decrease in homeownership, as affordability became a greater challenge for potential buyers.
Federal interest rates have played a role in homeownership trends in zip code 64118. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained relatively stable at 62%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates slightly declined to 59%. This trend aligns with the general understanding that lower interest rates tend to encourage homeownership due to more affordable financing options.
The renter population in zip code 64118 has seen a corresponding increase as homeownership rates declined. The percentage of renters rose from 38% in 2013 to 41% in 2022. This shift coincided with a steady increase in average rent prices. In 2013, the average rent was $1,044, which increased to $1,134 by 2022, representing an 8.6% rise over nine years. The population of the zip code also grew during this period, from 39,306 in 2013 to 42,178 in 2022, potentially contributing to the increased demand for rental properties.
Looking at the most recent data, average home prices in zip code 64118 continued to rise, reaching $248,004 in 2023 and $256,946 in 2024. This represents a 5.7% increase from 2022 to 2023 and a further 3.6% increase from 2023 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 64118 will continue to rise, albeit at a potentially slower rate due to higher interest rates. By 2029, average home prices could reach approximately $300,000 to $320,000. Average rent prices are also expected to increase, potentially reaching $1,300 to $1,400 per month by 2029, assuming the current trends continue.
In summary, zip code 64118 has experienced a slight shift from homeownership to renting over the past decade, driven by rapidly increasing home prices and fluctuating interest rates. The area has seen significant property value appreciation, with average home prices more than doubling since 2013. Rent prices have also increased, though at a more moderate pace. These trends, combined with population growth, suggest a dynamic and evolving real estate market in this Kansas City zip code.
