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Warrensburg, Missouri: Home Values Surge as University Town Shifts Towards Homeownership
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Warrensburg, Missouri, a vibrant city known for hosting the University of Central Missouri, has experienced notable shifts in its housing market over the past decade. The city has seen a gradual transition from a predominantly renter-occupied market to a more balanced mix of owners and renters, alongside significant changes in average home prices and rent costs.
The homeownership rate in Warrensburg has shown a steady increase from 2013 to 2022. In 2013, 47% of housing units were owner-occupied, and this figure rose to 50% by 2022. This upward trend in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price in Warrensburg was $151,770, which grew to $245,585 by 2022, representing a remarkable 61.8% increase over nine years.
The relationship between federal interest rates and homeownership rates in Warrensburg presents an interesting dynamic. Despite historically low interest rates from 2013 to 2021, ranging from 0.08% to 0.14%, the city saw only a modest increase in homeownership. This suggests that other local factors, such as the university's influence on the rental market, may have played a significant role in housing decisions.
Conversely, the percentage of renter-occupied housing units in Warrensburg decreased slightly from 53% in 2013 to 50% in 2022. During this period, average rent prices experienced substantial growth. In 2013, the average rent was $635, which increased to $947 by 2022, marking a 49.1% rise. This significant increase in rent prices occurred despite the slight decrease in the proportion of renters, possibly indicating a tightening rental market or an increase in higher-quality rental properties.
In 2023 and 2024, Warrensburg's housing market continued to evolve. The average home price reached $253,386 in 2023 and further increased to $258,782 in 2024, showing continued growth albeit at a slower pace compared to previous years. Notably, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which could impact future homeownership trends.
Looking ahead, predictive models suggest that average home prices in Warrensburg may continue to rise over the next five years, potentially reaching around $280,000 by 2029. This projection is based on the historical growth rate and assumes relatively stable economic conditions. For rent prices, the forecast indicates a potential increase to approximately $1,100 per month by 2029, continuing the upward trend observed in recent years.
In summary, Warrensburg has experienced a gradual shift towards increased homeownership, accompanied by substantial growth in both average home prices and rent costs. The city's housing market has shown resilience and growth, with homeownership rates rising despite significant increases in property values. The rental market, while slightly shrinking in proportion, has seen considerable price appreciation. These trends, coupled with recent interest rate changes, suggest a dynamic and evolving housing landscape in Warrensburg for the coming years.
