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Warson Woods: A Small Missouri City with Exceptionally High Home Ownership and Rising Values
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
Warson Woods, a small city in Missouri, is known for its high homeownership rates and stable property values. This affluent suburb has consistently maintained a strong preference for owner-occupied housing, with average home prices showing a general upward trend over the years.
The homeownership rate in Warson Woods has remained remarkably high, fluctuating between 97% and 99% from 2013 to 2022. This stability in homeownership coincides with a steady increase in average home prices. In 2013, the average home price was $364,325, which rose to $573,520 by 2022, representing a 57.4% increase over this period. The city experienced its most significant year-over-year price increase between 2020 and 2021, when average home prices jumped from $476,670 to $522,303, a 9.6% rise.
Federal interest rates have played a role in shaping homeownership trends in Warson Woods. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%, which likely contributed to the sustained high homeownership rates. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), the homeownership rate remained stable, suggesting that other factors, such as the city's affluence and desirability, may have offset any potential negative impact of rising rates on homeownership.
The rental market in Warson Woods is notably small, with renter-occupied housing ranging from 1% to 3% between 2013 and 2022. Despite this limited rental market, average rent prices have shown some fluctuation. In 2013, the average rent was $1,558, which decreased to $1,350 in 2017 and 2018, before rising again to $1,385 in 2022. The limited supply of rental properties in the city likely contributes to these variations in rent prices.
In 2023, the average home price in Warson Woods reached $605,209, a 5.5% increase from 2022. This upward trend continued into 2024, with average home prices rising to $628,223, representing a further 3.8% increase. Notably, federal interest rates also saw significant increases during this period, rising to 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and property values.
Looking ahead, predictive models suggest that average home prices in Warson Woods are likely to continue their upward trajectory over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are expected to remain relatively stable with minor fluctuations, given the city's limited rental market and consistent high homeownership rates.
In summary, Warson Woods has maintained exceptionally high homeownership rates despite fluctuations in federal interest rates and steadily increasing average home prices. The city's limited rental market has seen some variability in average rent prices, but overall remains a small fraction of the housing landscape. The recent sharp increases in both home prices and interest rates will likely shape the city's real estate market in the coming years, potentially influencing affordability and homeownership trends.
