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Zip Code 64126: Rising Home Values and Ownership Rates in Kansas City, Missouri
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
Zip code 64126, located in Kansas City, Missouri, has experienced significant shifts in homeownership rates and housing prices over the past decade. This area has seen a remarkable transformation in its real estate landscape, with notable changes in both ownership percentages and average home values. The homeownership rate in zip code 64126 has shown a striking upward trend, particularly in recent years. In 2013, the area had a homeownership rate of 46%. This figure remained relatively stable at 40% from 2014 to 2016 but then began a significant climb. By 2022, the homeownership rate had surged to 66%, marking a substantial increase of 20 percentage points in just six years. This rise in homeownership coincided with a dramatic increase in average home prices. In 2013, the average home price in the area was $19,723. By 2022, this figure had skyrocketed to $80,033, representing a staggering 306% increase over the nine-year period.
The relationship between federal interest rates and homeownership rates in this zip code presents an interesting case. Despite the general trend of lower interest rates encouraging homeownership, the most significant increases in homeownership in 64126 occurred during a period of rising interest rates. For instance, the federal interest rate increased from 0.38% in 2020 to 1.68% in 2022, yet the homeownership rate jumped from 53% to 66% during this time. This suggests that other factors, such as local economic conditions or housing policies, may have played a more significant role in driving homeownership in this area than national interest rates.
As homeownership rates increased, the percentage of renters in zip code 64126 naturally decreased. In 2013, renters occupied 54% of housing units. This figure peaked at 63% in 2017 before steadily declining to 34% by 2022. Interestingly, average rent prices did not follow a consistent trend during this period. The average rent was $840 in 2013, reached a high of $887 in 2016, then fluctuated before settling at $788 in 2022. The population of the zip code also fluctuated during this time, from 5,773 in 2013 to 5,480 in 2022, which may have influenced rental market dynamics.
In 2023 and 2024, the average home prices in zip code 64126 continued to rise, albeit at a slower pace. The average home price in 2023 was $80,058, showing only a marginal increase from 2022. In 2024, the average home price reached $83,096, representing a 3.8% increase from the previous year. This slower growth rate coincides with higher federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024.
Looking ahead, predictive models suggest that average home prices in zip code 64126 may continue to rise over the next five years, but at a more moderate pace compared to the rapid growth seen in the previous decade. Average rent prices are expected to stabilize or increase slightly, reflecting the area's changing demographics and housing market dynamics.
In summary, zip code 64126 has witnessed a remarkable transformation in its housing market. The area has seen a significant shift towards homeownership, with the rate increasing from 46% to 66% between 2013 and 2022. This change has been accompanied by a substantial rise in average home prices, which more than quadrupled during the same period. Despite rising interest rates, the trend towards homeownership has persisted, suggesting strong local factors driving this shift. As the area continues to evolve, it will be crucial to monitor how these trends impact the overall community and housing affordability in the coming years.
