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Washington, Missouri: Rising Home Values Amidst Stable Ownership Rates
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
Washington, located in Missouri, is a vibrant community with a population of 19,908 as of 2022. This charming city, spanning 9.99 square miles, has experienced interesting shifts in homeownership rates and housing prices over the past decade. The city has maintained a relatively high percentage of homeowners, with average home prices showing a consistent upward trend, while average rent prices have fluctuated.
Homeownership rates in Washington have remained strong, ranging from 69% to 77% between 2013 and 2022. This trend coincides with a steady increase in average home prices. In 2013, the average home price was $163,949, and by 2022, it had risen significantly to $269,664, representing a 64.5% increase over nine years. The peak of homeownership was observed in 2021 at 77%, corresponding with an average home price of $241,865. This correlation suggests that despite rising home prices, residents of Washington have maintained a strong preference for homeownership.
The relationship between federal interest rates and homeownership rates in Washington shows an interesting pattern. From 2013 to 2021, interest rates remained relatively low, ranging from 0.08% to 2.16%. During this period, homeownership rates fluctuated between 69% and 77%. Notably, the highest homeownership rate of 77% in 2021 coincided with an extremely low interest rate of 0.08%. This aligns with the general trend that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in Washington have fluctuated inversely to homeownership rates, ranging from 23% to 30% between 2013 and 2022. Interestingly, average rent prices have shown a gradual decline over this period. In 2013, the average rent was $936, peaking at $969 in 2015, before steadily decreasing to $799 in 2022. This 17.7% decrease in average rent prices over nine years is notable, especially considering the city's relatively stable population, which has hovered around 20,000 throughout this period.
In 2023 and 2024, Washington continued to see growth in average home prices. The average home price reached $279,190 in 2023 and further increased to $288,160 in 2024, representing a 3.6% and 3.2% year-over-year growth, respectively. This growth occurred despite rising federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for some prospective homebuyers.
Looking ahead, based on the observed trends, we can forecast continued growth in average home prices for Washington over the next five years. If the current trajectory holds, average home prices could potentially reach around $330,000 to $350,000 by 2029. However, the trend for average rent prices is less clear. While recent years have shown a decline, economic factors and housing demand could lead to a stabilization or potential increase in rent prices, possibly ranging from $800 to $900 over the next five years.
In summary, Washington has demonstrated a robust homeownership market with steadily increasing average home prices, even in the face of rising interest rates. The declining trend in average rent prices, coupled with stable homeownership rates, suggests a strong preference for home buying in this community. These trends indicate a potentially favorable environment for long-term residents and investors in Washington's real estate market.
