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Zip Code 64166: Rising Home Values and 100% Homeownership 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 64166, located in Kansas City, Missouri, presents an intriguing case study of homeownership and real estate trends. This area has experienced significant fluctuations in population and housing dynamics over the past decade, with a notable trend towards increased homeownership and rising average home prices.
The ownership percentage in zip code 64166 has shown a strong upward trend, increasing from 90% in 2013 to 100% in 2022. This remarkable shift coincides with a substantial rise in average home prices. In 2019, the average home price was $345,604, which increased to $434,908 by 2022, representing a 25.8% increase over just three years. This parallel growth in homeownership and home values suggests a robust and desirable housing market in the area.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 64166. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 0.38%. These low rates likely contributed to the high homeownership rates observed during this time, as they made mortgages more affordable for potential buyers. The sharp increase in interest rates to 1.68% in 2022 coincided with the peak in homeownership at 100%, possibly indicating a rush to purchase homes before rates climbed further.
Renter percentages in zip code 64166 have inversely mirrored the homeownership trend, decreasing from 10% in 2013 to 0% in 2022. Despite this decline in renters, average rent prices have remained relatively stable, increasing slightly from $1,627 in 2013 to $1,609 in 2022. This stability in rent prices, despite the decreasing renter population, might be attributed to the overall growth in population from 394 in 2013 to 539 in 2022, which could have maintained demand for the limited rental properties available.
In 2023 and 2024, the housing market in zip code 64166 continued to evolve. The average home price reached $443,917 in 2023 and further increased to $451,788 in 2024, representing a 2.1% and 1.8% year-over-year growth, respectively. These increases occurred despite the federal interest rates rising to 5.02% in 2023 and 5.33% in 2024, which are the highest rates seen in over a decade. This suggests a resilient housing market in the area, capable of sustaining growth even in a high-interest-rate environment.
Looking ahead, predictive models forecast continued growth in both average home prices and rent prices over the next five years. Average home prices are expected to maintain a steady upward trajectory, potentially reaching around $500,000 by 2029. Rent prices, while more stable, are also projected to increase gradually, possibly surpassing $1,700 per month within the same timeframe.
In summary, zip code 64166 has demonstrated a strong trend towards homeownership, with ownership rates reaching 100% by 2022. This shift has been accompanied by significant increases in average home prices, which have shown resilience even in the face of rising interest rates. The rental market, while diminishing, has maintained stable prices. These trends paint a picture of a desirable area with a robust housing market, likely to continue attracting homeowners and investors in the coming years.
