Rents Are Up, But Homeownership Rate’s Falling in KC

original article posted by Rob Roberts, Reporter for the Kansas City Business Journal

Area renter costs vs. owner costs

Kansas City has a widening gap between renter and owner cost:

The Kansas City area’s homeownership rate has been falling, despite decreasing costs of ownership and rising rental costs, Apartment List reports.

According to Apartment List’s analysis of the U.S. Census data, the homeownership rate in Kansas City fell from 71.3 percent to 63.0 percent between 2007 and 2016.

During a similar span, from 2007 through 2014, the average costs of local homeownership (mortgage, maintenance, etc.) fell by 11.1 percent to $1,388, while the average renter costs increased 4.7 percent to $850.

The largest drop in local homeownership between 2007 and 2016 — 9.5 percentage points — was recorded among Asian-Americans, Apartment List reported.

RELATED: Report: Buying a home vs. renting a ‘no-brainer’ in KC

Since the recession of 2007-2009, the national homeownership rate has fallen steadily and recently dropped to its lowest level since 1965.

According to Apartment List, the economic downturn had the greatest impact on homeownership among these three segments of the U.S. population: those in Sun Belt cities like Las Vegas, Phoenix, Orlando and Atlanta; young Americans aged 18-45; and Hispanics and African-Americans.

Read the full article here…