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Average Home Values and Ownership in Fromberg, Montana: Zip Code 59029's Evolving Housing Market
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
Fromberg, Montana, zip code 59029, is a small town that has experienced notable shifts in its housing market over the past decade. The area has seen fluctuations in homeownership rates and significant changes in average home and rent prices, reflecting broader economic trends and local demographic shifts.
Homeownership in Fromberg has shown a general trend of increase from 2013 to 2018, with the percentage of owner-occupied homes rising from 78% to 90%. This peak in 2018 coincided with average home prices of $216,465. However, there has been a decline in homeownership since then, dropping to 77% in 2022. Despite this decrease, average home prices continued to rise, reaching $354,089 in 2022. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents in recent years.
The federal interest rate trends appear to have influenced homeownership rates in Fromberg. For instance, the period of low interest rates from 2013 to 2016 (ranging from 0.09% to 0.40%) coincided with an increase in homeownership from 78% to 91%. As interest rates began to rise more significantly from 2017 onwards, we see a gradual decline in homeownership percentages, suggesting that higher borrowing costs may have impacted buyers' ability to purchase homes.
Renter percentages in Fromberg have generally mirrored the inverse of homeownership trends. The percentage of renters decreased from 21% in 2013 to a low of 9% in 2017, before rising again to 22% in 2022. Average rent prices have shown a consistent upward trend, increasing from $662 in 2013 to $825 in 2022. This represents a 24.6% increase in average rent over nine years. The rise in rent prices, coupled with the recent increase in renter percentages, suggests a growing demand for rental properties in the area.
In 2023 and 2024, Fromberg's housing market continued its upward trajectory. The average home price in 2023 was $368,573, and it further increased to $385,023 in 2024. This represents a 4.2% year-over-year increase. Concurrently, federal interest rates rose to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying affordability and contributing to the continued rise in home prices.
Looking ahead, based on the observed trends, we can forecast that average home prices in Fromberg are likely to continue rising over the next five years, albeit potentially at a slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by the growing renter population and overall housing market appreciation. The interplay between interest rates, home prices, and rental demand will likely continue to shape Fromberg's housing landscape in the coming years.
In summary, Fromberg's housing market has demonstrated resilience and growth, with significant increases in both home values and rent prices over the past decade. The shift from peak homeownership rates to a more balanced owner-renter mix, coupled with consistently rising property values, indicates a dynamic and evolving housing market in this Montana town.
