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Zip Code 62379: Warsaw's Stable Homeownership Amid Rising Home 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
Warsaw, located in zip code 62379 in Illinois, is a small community that has experienced notable shifts in its housing market over the past decade. The city has maintained a predominantly owner-occupied housing landscape, with homeownership rates consistently above 75%. However, there have been subtle fluctuations in both ownership percentages and average home prices that warrant closer examination.
The homeownership rate in Warsaw has remained relatively stable, with minor fluctuations between 2013 and 2022. In 2013, the homeownership rate stood at 82%, and it remained at this level in 2022, despite some variations in the intervening years. The lowest point was observed in 2017 at 77%, while the highest was maintained at 82% in several years including 2019 and 2020. Interestingly, the average home prices in the area have shown a general upward trend since data became available in 2016. The average home price increased from $79,661 in 2016 to $101,549 in 2022, representing a growth of approximately 27.5% over six years.
Federal interest rates have played a significant role in shaping homeownership trends in Warsaw. The period from 2016 to 2022 saw interest rates fluctuate between 0.4% and 1.68%, which are historically low levels. These low interest rates likely contributed to maintaining the high homeownership rates in the area by making mortgages more affordable for potential buyers. The slight dip in homeownership to 77% in 2017 coincided with a rise in interest rates from 0.4% in 2016 to 1% in 2017, possibly making home purchases slightly less attractive for some buyers.
Renter percentages in Warsaw have shown a corresponding inverse relationship to homeownership rates, ranging from 17% to 23% between 2013 and 2022. The average rent prices have demonstrated a general upward trend, increasing from $574 in 2013 to $606 in 2022, an overall increase of about 5.6%. Notably, there was a significant jump in average rent to $659 in 2021, before returning to $606 in 2022. This spike in rent coincided with a slight increase in the renter percentage to 19% in 2021, possibly reflecting a temporary shift in housing preferences or availability.
In 2023 and 2024, Warsaw has experienced continued growth in average home prices, reaching $101,042 in 2023 and further increasing to $106,576 in 2024. This represents a 5.5% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership rates and housing market dynamics in the area.
Looking ahead, based on the trends observed, we can forecast that average home prices in Warsaw are likely to continue their upward trajectory over the next five years, potentially reaching around $120,000 by 2029. Average rent prices may also continue to increase, albeit at a slower pace, potentially reaching about $650 by 2029. However, the recent sharp increase in interest rates could moderate these growth trends, potentially leading to a more stabilized housing market in the coming years.
In summary, Warsaw has maintained a strong homeownership culture despite fluctuations in the housing market. The area has seen steady growth in average home prices, with more modest increases in average rent. The relationship between federal interest rates, homeownership rates, and housing prices has been evident, with low interest rates supporting high homeownership rates and rising home values. As interest rates have recently increased, it will be crucial to monitor how this affects the local housing market dynamics in the coming years.
