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Zip Code 65355: Rising Home Values and Strong Ownership in Warsaw, Missouri
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, Missouri, zip code 65355, is a charming city located in the heart of the Show-Me State. Over the past decade, this area has experienced notable shifts in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics. The homeownership rate in Warsaw has shown resilience, with a slight increase from 79% in 2016 to 84% in 2022. This trend coincides with a significant rise in average home prices, which grew from $96,540 in 2016 to $179,203 in 2022, representing an impressive 85.6% increase over six years. This substantial appreciation in home values likely contributed to the steady homeownership rates, as residents may have been motivated to enter the market to capitalize on potential equity gains.
Federal interest rates have played a crucial role in shaping homeownership trends in Warsaw. The period from 2016 to 2020 saw relatively low interest rates, ranging from 0.4% to 2.16%, which likely supported the high homeownership rates observed during this time. The exceptionally low rate of 0.08% in 2021 coincided with a slight dip in homeownership to 82%, possibly due to increased competition in the housing market as more buyers entered with favorable financing conditions.
Renter percentages in Warsaw have remained relatively stable, fluctuating between 16% and 20% from 2013 to 2022. Average rent prices have shown moderate growth, increasing from $627 in 2013 to $666 in 2022, a 6.2% rise over nine years. This modest increase in rent prices, coupled with the growing population from 9,606 in 2013 to 10,061 in 2022, suggests a balanced rental market that has managed to accommodate population growth without significant pressure on rental costs.
In 2023 and 2024, Warsaw experienced a shift in the housing market. Average home prices decreased from the 2022 peak of $179,203 to $170,774 in 2023 and further to $164,830 in 2024. This decline coincides with a sharp increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher rates likely cooled the housing market, making mortgages more expensive and potentially reducing buyer demand.
Looking ahead, predictive models suggest that average home prices in Warsaw may continue to face downward pressure in the short term due to the current high interest rate environment. However, as the market adjusts, prices are expected to stabilize and potentially resume a moderate growth trajectory over the next five years. Rent prices are anticipated to increase gradually, driven by population growth and the potential shift of some would-be buyers to the rental market due to higher mortgage costs.
In summary, Warsaw's housing market has demonstrated strong appreciation over the past decade, with resilient homeownership rates despite significant price increases. The recent cooling of home prices, influenced by rising interest rates, marks a new phase in the market's evolution. As Warsaw continues to grow, balancing affordability with market dynamics will be key to maintaining its attractive housing landscape for both owners and renters.
