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Augusta, Montana: Mountain Town Sees 116% Increase in Home Values over a Decade
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
Augusta, Montana, is a small community nestled in the Rocky Mountains, known for its picturesque landscapes and proximity to outdoor recreational activities. Over the past decade, this rural town has experienced fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Augusta has shown a general upward trend from 2013 to 2022, with some fluctuations. In 2013, the homeownership rate was 68%, which increased to 72% by 2021, before slightly decreasing to 67% in 2022. This overall increase in homeownership coincided with a significant rise in average home prices. In 2013, the average home price was $167,818, which steadily increased to $363,220 by 2022, representing a substantial 116% increase over this period.
The relationship between federal interest rates and homeownership rates in Augusta appears to follow the general trend of lower interest rates encouraging homeownership. For instance, from 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.4%), the homeownership rate remained relatively stable at around 63-65%. As interest rates began to rise more significantly from 2017 onwards, there was a slight increase in homeownership, reaching 72% in 2021 when interest rates were at a low of 0.08%. This could be attributed to residents taking advantage of the low rates to purchase homes before anticipated increases.
Renter percentages in Augusta have generally decreased as homeownership rates increased. In 2013, the renter-occupied percentage was 33%, which dropped to 27% by 2021, before rising slightly to 33% in 2022. Average rent prices have shown an overall upward trend, albeit with some fluctuations. In 2013, the average rent was $608, which decreased to $513 in 2017 before rising steadily to $775 in 2022, representing a 27% increase from 2013 to 2022. The population of Augusta has decreased from 353 in 2013 to 312 in 2022, which may have influenced the rental market dynamics.
In 2023, the average home price in Augusta slightly decreased to $356,288, and in 2024, it increased again to $368,937. This represents a modest growth of 3.6% from 2023 to 2024. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, which are the highest levels seen since 2007.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Augusta will continue to rise, albeit at a more moderate pace. Given the current high interest rates and recent price increases, we expect an average annual growth rate of 3-5% in home prices over the next five years. For rent prices, we predict a similar trend of steady increase, with an estimated annual growth of 2-4%, reflecting the overall housing market trends and local economic factors.
In summary, Augusta has experienced a notable increase in homeownership rates and substantial growth in average home prices over the past decade. The rental market has seen more modest increases in prices, with a general decrease in the proportion of renters. Recent years have brought higher interest rates, which may impact future homeownership trends. The community's small size and rural location contribute to its unique housing market dynamics, which continue to evolve in response to broader economic factors and local conditions.
