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Average Home Values and Ownership in Hamilton, Montana: Zip Code 59840's Resilient 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
Zip code 59840, located in Hamilton, Montana, has experienced notable changes in its real estate landscape over the past decade. This area has seen fluctuations in homeownership rates and significant increases in both average home prices and average rent prices. The interplay between these factors provides insight into the evolving housing market dynamics of this Montana community.
The homeownership rate in zip code 59840 has shown a general upward trend, with some fluctuations. In 2013, 68% of housing units were owner-occupied. This rate dipped to 61% in 2015 but rebounded to reach 71% by 2021. Concurrently, average home prices have seen a substantial increase. In 2013, the average home price was $186,714, which more than doubled to $511,915 by 2022. This remarkable 174% increase in average home prices over nine years indicates a robust appreciation in the local real estate market.
Federal interest rates have played a significant role in shaping homeownership trends. The period from 2013 to 2021 was characterized by historically low interest rates, ranging from 0.09% to 1.68%. These low rates likely contributed to the overall increase in homeownership, making mortgage financing more accessible and affordable for potential buyers. For instance, the homeownership rate increased from 65% in 2014 to 71% in 2021, coinciding with interest rates remaining below 2%.
Renter percentages have inversely mirrored the homeownership trends, decreasing from 32% in 2013 to 29% in 2021. However, average rent prices have shown a steady upward trajectory. In 2013, the average rent was $916, which increased to $1,090 by 2021, representing a 19% rise. This increase in rent prices, coupled with the growing population (from 14,222 in 2013 to 15,376 in 2022), suggests a competitive rental market despite the decreasing percentage of renters.
In 2023 and 2024, the housing market in zip code 59840 has shown interesting developments. The average home price slightly decreased to $500,407 in 2023 but rebounded to $511,767 in 2024. This slight dip and recovery occurred against the backdrop of significantly higher federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher rates may impact future homebuying activity and affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 59840 may continue to rise over the next five years, albeit at a more moderate pace than the rapid growth seen in recent years. Average rent prices are also expected to increase, driven by ongoing population growth and the area's economic conditions. However, the rate of increase for both home prices and rents may be tempered by the higher interest rate environment.
In summary, zip code 59840 has experienced a significant increase in homeownership rates and average home prices over the past decade, supported by a long period of low interest rates. Despite a decrease in the percentage of renters, average rent prices have also risen steadily. The recent uptick in interest rates and the slight fluctuation in home prices in 2023-2024 may signal a shift towards a more balanced market in the coming years, with continued but more moderate growth in both the ownership and rental sectors.
