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Zip Code 64128: Rising Home Values and Ownership Trends 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 64128, located in Kansas City, Missouri, has experienced significant changes in homeownership rates and property values over the past decade. This area has seen a gradual shift in the balance between owners and renters, alongside substantial fluctuations in average home prices and rent costs.
The homeownership rate in zip code 64128 has shown a slight increase in recent years, rising from 41% in 2018 to 46% in 2022. This upward trend in homeownership coincides with a dramatic surge in average home prices. In 2013, the average home price was $16,188, but by 2022, it had skyrocketed to $82,236, representing a remarkable 408% increase over nine years. This sharp rise in home values may have influenced some residents to invest in homeownership, despite the potential challenges of affordability.
Federal interest rates have played a significant role in shaping homeownership trends in this zip code. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, the homeownership rate remained relatively stable at 44-45%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, there was a slight increase in homeownership to 46%. This suggests that residents may have been motivated to purchase homes before potential further increases in interest rates made mortgages less affordable.
The renter population in zip code 64128 has fluctuated over the years, with the percentage of renters peaking at 59% in 2018 before declining to 54% in 2022. Interestingly, average rent prices have not shown a consistent upward trend despite the increase in home values. In 2013, the average rent was $891, and it reached its highest point of $925 in 2021 before decreasing to $829 in 2022. This volatility in rent prices, coupled with the dramatic increase in home values, may have influenced some renters to transition to homeownership, contributing to the slight decrease in the renter population.
In 2023 and 2024, the housing market in zip code 64128 showed signs of stabilization. The average home price slightly decreased to $81,664 in 2023 before rebounding to $87,801 in 2024. This represents a more modest growth rate compared to the rapid increases seen in previous years. Notably, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and housing affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 64128 may continue to rise, albeit at a more moderate pace. Over the next five years, we can expect average home prices to potentially reach the $100,000 to $120,000 range, assuming current economic conditions persist. Average rent prices are likely to stabilize and potentially increase slightly, possibly reaching $950 to $1,000 per month by 2029. However, these projections are subject to various economic factors and local market conditions.
In summary, zip code 64128 has experienced a notable increase in homeownership rates and a substantial rise in average home prices over the past decade. The interplay between federal interest rates, housing affordability, and rent prices has shaped the local real estate landscape. As the market shows signs of stabilization, residents and potential investors should continue to monitor these trends closely as they make housing decisions in this evolving Kansas City neighborhood.
