Loading Content...
Zip Code 66217: Rising Home Values and Shifting Ownership Trends in Shawnee, Kansas
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 66217, located in Shawnee, Kansas, has experienced significant changes in its housing market over the past decade. This area has seen fluctuations 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 66217 has shown a general decline from 2013 to 2022. In 2013, the area had a 65% homeownership rate, which decreased to 55% by 2022. This decline coincided with a substantial increase in average home prices. In 2013, the average home price was $303,297, which rose steadily to $493,110 by 2022, representing a 62.6% increase over this period. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents.
Federal interest rates have played a role in shaping homeownership trends in the area. From 2013 to 2016, when interest rates were at historic lows (ranging from 0.11% to 0.4%), homeownership rates remained relatively stable, hovering around 62%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined to 55%. 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 66217 has increased as homeownership has declined. The percentage of renters rose from 35% in 2013 to 45% in 2022. Concurrently, average rent prices have shown substantial growth. In 2013, the average rent was $926, which increased dramatically to $1,237 by 2022, representing a 33.6% increase. This rise in rent prices, coupled with the growing renter population, suggests a strong demand for rental properties in the area. The population growth from 6,434 in 2013 to 7,333 in 2022 likely contributed to this increased demand for rental housing.
As of 2024, the average home price in zip code 66217 has reached $539,972, continuing the upward trend observed in previous years. This represents a 9.4% increase from the 2022 average price of $493,110. The federal interest rate in 2024 stands at 5.33%, significantly higher than the 1.68% rate in 2022. This substantial increase in interest rates could potentially impact future homeownership rates and housing affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 66217 may continue to rise over the next five years, potentially reaching around $600,000 by 2029. Average rent prices are also expected to increase, potentially surpassing $1,400 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, zip code 66217 has experienced a shift towards a higher percentage of renters, accompanied by substantial increases in both average home prices and average rent prices. The interplay between rising property values, changing interest rates, and population growth has shaped the local housing market dynamics. As the area continues to evolve, these trends are likely to have significant implications for housing affordability and accessibility in the coming years.
