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Zip Code 66085: Overland Park's Rising Home Values and Shifting Ownership Trends
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 66085, located in Overland Park, Kansas, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has seen a general trend of increasing property values and a slight shift in the balance between owners and renters.
The homeownership rate in zip code 66085 has shown a slight decline over the years, moving from 92% in 2018 to 85% in 2022. This change coincides with a substantial increase in average home prices. In 2010, the average home price was $282,924, and by 2022, it had risen to $573,175, representing a 102.6% increase over 12 years. This significant appreciation in home values may have contributed to the slight decrease in homeownership, as higher prices can make purchasing a home more challenging for some residents.
Federal interest rates have played a role in homeownership trends in the area. For instance, the low interest rates from 2020 to 2021 (0.38% and 0.08% respectively) coincided with a period of stability in homeownership rates, which remained at 90% and 89% during those years. However, as interest rates began to rise in 2022 to 1.68%, the homeownership rate dropped to 85%, suggesting that higher borrowing costs may have impacted some residents' ability to purchase homes.
The renter population in zip code 66085 has seen a corresponding increase, rising from 8% in 2018 to 15% in 2022. This trend aligns with the growth in average rent prices, which increased from $1,691 in 2018 to $1,843 in 2022, a 9% rise over four years. The population growth in the area, from 8,114 in 2018 to 11,329 in 2022, may have contributed to the increased demand for rental properties and the subsequent rise in rent prices.
In 2023 and 2024, the average home prices in zip code 66085 continued to climb, reaching $604,865 in 2023 and $625,526 in 2024. This represents a 5.5% and 3.4% year-over-year increase, respectively. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and property values in the area.
Looking ahead, based on the historical data and current trends, we can anticipate continued growth in both average home prices and rent prices over the next five years. Average home prices could potentially reach around $750,000 by 2029, assuming a moderate annual growth rate of 3-4%. Average rent prices might increase to approximately $2,100 per month, considering a similar growth trajectory. However, these projections could be influenced by various factors such as economic conditions, local development, and changes in population demographics.
In summary, zip code 66085 has experienced a significant increase in property values over the past decade, with a slight shift towards more renters. The area has shown resilience in maintaining high homeownership rates despite rising home prices, but recent increases in interest rates and continued property appreciation may present challenges for future homebuyers. The rental market has also seen steady growth, reflecting the area's increasing population and demand for housing.
