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Over the past six years, the amount of new home construction in Warsaw increased dramatically, with this year's total more than seven times that of 1999.
Warsaw is growing, but the ratio of new houses to population growth hasn't been established.
City Planner Jeremy Skinner estimates the city expanded anywhere from 7-10 percent this year. With 400 residential lots approved for platting in 2005, even the current population growth could potentially increase, but Skinner said he doesn't likely see a large spike from recent developments.
"There's two ways to look at this," Skinner said. "If you look at this year's number of new subdivisions compared to previous years, then, yes, there's a boom taking place.
"But compare it to the change in interest rates over past years, and the increase could have developed out of that."
In 2001, interest rates were nearly sliced in half after the national economy slumped. With less incentive to save money, the option of buying a home during this period was more appealing. Since this 2001 reduction, the U.S. economy recovered, and rates are steadily increasing back to old numbers.
"Whether or not it's the interest rate or a housing boom is a bit hard to tell," Skinner said. "It's probably a bit of both."
As of November, 66 new homes were constructed within Warsaw, and overall construction costs ranged around $11.7 million. In 2002, 30 homes were built and building costs totaled less than $6 million.
Statistically, numbers in these departments doubled in three years, and both 2003 and 2004 experienced steady growth (43 and 57 new homes respectively.)
According to Skinner, not all 400 lots approved this year will have residents by the end of 2006. Developers phase in housing, and often fill lots with residents over and five- to 10-year span. With these new lots available, as well as from previous approved subdivisions, the potential for massive growth is available.
"Developers don't develop properties they can't sell," Skinner said. "If a housing complex is going up, then I'm pretty sure they'll be able to sell it.
"I believe there will continue to be an incline because of current markets and growth Warsaw has seen from its industries," Skinner said.
He said the growth shouldn't be considered a drastic increase. The change is manageable under current conditions.
"The biggest thing facing the city of Warsaw is infrastructure and how they will accommodate growth and adjust to new cost levels," Skinner said.
As the city grows, factors such as transportation, sewer lines, storm water drainage and police department matters all will need to be adjusted and/or improved in order for the city to run properly.
"The question is not whether population totals will go up," he said. "The question is whether or not it will go down.
"What happens in the next two or three years will determine exactly what takes place. Our economy is much better than it has been, and interest rates are improving."
