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Zip Code 64151: Rising Home Values and Shifting Ownership Trends in Kansas City
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 64151, located in Kansas City, Missouri, has experienced significant changes in its housing market over the past decade. This area has seen a gradual shift in homeownership rates and substantial increases in both average home prices and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 64151 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 correlates with the rise in average home prices, which increased from $171,401 in 2013 to $314,352 in 2022, representing an impressive 83% growth over nine years. The inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less attainable for some residents.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, interest rates remained below 0.5%, coinciding with a period of relative stability in homeownership rates around 60-62%. As interest rates began to rise in 2017, reaching 1.83% by 2018, the homeownership rate in the zip code showed a slight decline to 60%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The renter population in zip code 64151 has seen a corresponding increase as homeownership rates declined. The percentage of renters rose from 37% in 2013 to 41% in 2022. This shift coincided with a significant increase in average rent prices, which grew from $964 in 2013 to $1,173 in 2022, a 22% increase. The population of the zip code also grew during this period, from 25,496 in 2013 to 29,337 in 2022, potentially contributing to increased demand for rental properties and higher rent prices.
In 2023 and 2024, the housing market in zip code 64151 continued to evolve. The average home price reached $322,816 in 2023 and further increased to $331,243 in 2024, showing continued appreciation despite higher interest rates. Federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends in the area.
Looking ahead, predictive models suggest that the upward trend in both average home prices and average rent prices is likely to continue in zip code 64151 over the next five years. Based on historical data and current market conditions, average home prices could potentially reach around $380,000 by 2029, while average rent prices might approach $1,400 per month. However, these projections are subject to various economic factors and local market conditions.
In summary, zip code 64151 has experienced a gradual shift towards a higher percentage of renters, driven by rising average home prices and changing economic conditions. The substantial increase in property values, coupled with fluctuations in interest rates, has reshaped the local housing market. As the area continues to grow and evolve, balancing affordable housing options with the rising cost of both homeownership and renting will be crucial for maintaining a diverse and thriving community.
