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Zip Code 64139: Rising Home Values and Shifting Ownership 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 64139, located in Kansas City, Missouri, has experienced significant changes in its housing market over the past decade. This area has seen notable shifts in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics. The homeownership rate in zip code 64139 has shown a gradual decline from 2013 to 2022. In 2013, 82% of housing units were owner-occupied, but by 2022, this figure had decreased to 67%. This 15 percentage point drop in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price in the area was $239,421, which rose steadily to reach $427,510 by 2022, representing a 78.6% increase over this period.
The relationship between federal interest rates and homeownership rates in this zip code shows an interesting pattern. As interest rates remained low from 2013 to 2020 (ranging from 0.08% to 2.16%), homeownership rates initially remained stable but began to decline more rapidly after 2016. This suggests that while low interest rates typically encourage homeownership, other local factors may have been influencing the market in zip code 64139.
Conversely, the percentage of renters in the area has increased from 19% in 2013 to 33% in 2022. This rise in renters coincided with fluctuations in average rent prices. The average rent in 2013 was $920, which decreased to $683 in 2014 before rising significantly to $1,421 in 2016. Since then, average rent prices have shown some volatility but generally remained above $1,200, reaching $1,391 in 2022. The population in the zip code has also fluctuated, peaking at 2,202 in 2021 before decreasing to 1,954 in 2022, which may have influenced rental demand and prices.
Looking at the most recent data, the average home price in zip code 64139 continued to rise, reaching $436,888 in 2023 and $445,779 in 2024. This represents a 4.3% increase from 2022 to 2024, despite the significant rise in federal interest rates to 5.02% in 2023 and 5.33% in 2024. These higher interest rates 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 64139 will continue to increase, albeit at a slower rate due to higher interest rates. We project average home prices could reach approximately $500,000 by 2029. Average rent prices are also expected to rise, potentially reaching around $1,600 per month in the same timeframe, driven by increased demand for rental properties as homeownership becomes less affordable for some residents.
In summary, zip code 64139 has experienced a significant shift from homeownership to renting over the past decade, accompanied by substantial increases in both average home prices and average rent prices. The area has shown resilience in property values despite recent interest rate hikes, suggesting a strong local real estate market. However, the trend towards renting may continue if home prices remain high and interest rates stay elevated, potentially altering the community's long-term demographic composition.
