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Zip Code 64163: Resilient Homeownership Amid Rising Home Values in Kansas City, Missouri
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
DATA SOURCE
United States Census Bureau: American Community Survey Data (ACS)
Zillow: Zillow Home Value Index (ZHVI)
Zip code 64163, located in Kansas City, Missouri, presents an intriguing case study of real estate dynamics in a relatively small urban area. This zip code has experienced fluctuations in homeownership rates and significant changes in both average home prices and average rent prices over the past decade.
The homeownership rate in zip code 64163 has remained relatively stable, with some minor fluctuations. In 2013, the homeownership rate stood at 62%, and by 2022, it was at 61%. During this period, average home prices saw a substantial increase. In 2013, the average home price was $104,502, and by 2022, it had risen to $249,001, representing a remarkable 138% increase over nine years. This trend suggests that while homeownership rates remained relatively constant, property values in the area appreciated significantly.
Federal interest rates play a crucial role in homeownership trends. From 2013 to 2016, interest rates were extremely low, ranging from 0.11% to 0.40%. During this period, homeownership rates in zip code 64163 fluctuated between 58% and 62%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates remained relatively stable, hovering around 60%. This suggests that other local factors may have influenced homeownership rates more than interest rates in this particular zip code.
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Renter percentages in zip code 64163 have shown some variability over the years. In 2013, the renter-occupied rate was 33%, and it fluctuated between 30% and 36% until 2019. In 2020 and 2021, there was a notable increase to 41% renter-occupied units. Concurrently, average rent prices have steadily increased. In 2013, the average rent was $565, and by 2022, it had risen to $720, representing a 27.4% increase over nine years. The population of the zip code has also fluctuated, from 775 in 2013 to 763 in 2022, which may have influenced rental market dynamics.
Looking at the most recent data, the average home price in zip code 64163 continued to rise, reaching $260,352 in 2023 and $269,802 in 2024. This represents a 4.6% increase from 2022 to 2023 and a further 3.6% increase from 2023 to 2024. Interestingly, federal interest rates also saw a significant increase, rising to 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership trends in the area.
Applying predictive models to forecast 5-year trends, we can expect average home prices in zip code 64163 to continue their upward trajectory, albeit potentially at a slower rate due to higher interest rates. Average home prices could reach around $300,000 by 2029. Average rent prices are also likely to continue increasing, potentially reaching $850-$900 by 2029, assuming the current growth rate persists.
In summary, zip code 64163 has demonstrated resilience in homeownership rates despite significant increases in average home prices. The rental market has seen steady growth in both occupancy rates and average rent prices. The recent sharp increases in federal interest rates may influence future homeownership trends, potentially slowing down the rate of home price appreciation. Overall, this zip code presents a picture of a gradually appreciating real estate market with a relatively stable balance between homeowners and renters.
