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Average Home Values and Ownership Trends in Zip Code 46582: Warsaw's Shifting Housing Landscape
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 46582, located in Warsaw, Indiana, has experienced significant demographic and housing market changes over the past decade. This area has seen fluctuations in homeownership rates, coupled with a general upward trend in both average home prices and average rent prices.
The homeownership rate in zip code 46582 has shown a notable decline from 2013 to 2022. In 2013, 82% of housing units were owner-occupied, but by 2022, this figure had dropped to 66%. This decrease in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $154,990, which steadily rose to $274,299 by 2022, representing a 77% increase over nine years.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable at around 80%. However, as interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates started to decline, reaching 75% by 2019. The sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) did not reverse the declining homeownership trend, possibly due to the rapid increase in home prices during this period.
As homeownership rates declined, the percentage of renters in zip code 46582 increased from 18% in 2013 to 34% in 2022. This shift was accompanied by fluctuations in average rent prices. The average rent rose from $773 in 2013 to a peak of $837 in 2021, before slightly decreasing to $795 in 2022. The population of the zip code also grew during this period, from 12,211 in 2013 to 12,855 in 2022, which likely contributed to the increased demand for rental properties.
In 2023 and 2024, the housing market in zip code 46582 continued to evolve. The average home price reached $285,418 in 2023 and further increased to $291,281 in 2024, representing a 6.2% growth over these two years. This price growth occurred despite a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for potential homebuyers.
Looking ahead, based on the observed trends, we can project continued growth in both average home prices and rent prices over the next five years. Average home prices are likely to surpass $300,000 by 2025 and could approach $350,000 by 2029, assuming the current growth rate continues. Average rent prices may also continue to rise, potentially reaching $850-$900 per month by 2029, driven by increasing demand for rental properties as homeownership becomes less affordable for some residents.
In summary, zip code 46582 has experienced a significant shift from homeownership to renting, driven by rapidly increasing home prices and fluctuating interest rates. The area has seen consistent population growth, contributing to increased housing demand. As average home prices continue to rise, the trend towards renting is likely to persist, potentially leading to further increases in average rent prices. These dynamics suggest a changing housing landscape in Warsaw, Indiana, with implications for both current and future residents.
