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Average Home Values and Ownership in Sidney, Montana Zip Code 59270: A Decade of Housing Market Dynamics
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 59270, located in Sidney, Montana, has experienced significant changes in its housing market over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 59270 has shown a notable trend over the years. In 2013, the homeownership rate stood at 69%, which remained stable through 2014. However, there was a decline to 63% in 2015 and 2016, followed by a further drop to 60% in 2017 and 2018. The trend then reversed, with homeownership rates increasing to 63% in 2019, 65% in 2020 and 2021, and reaching 67% in 2022. This upward trend in homeownership coincided with changes in average home prices. Average home prices in the area increased from $254,754 in 2016 to $345,730 in 2022, representing a substantial 35.7% increase over six years.
The relationship between federal interest rates and homeownership rates in zip code 59270 appears to follow established economic patterns. For instance, the period of low interest rates from 2013 to 2015 (0.11%, 0.09%, and 0.13% respectively) coincided with relatively high homeownership rates. As interest rates began to rise from 2016 onwards, reaching 1.83% in 2018, there was a corresponding decline in homeownership rates. However, the subsequent increase in homeownership from 2019 to 2022 occurred despite rising interest rates, suggesting other local factors may have influenced this trend.
Renter percentages in zip code 59270 have generally moved inversely to homeownership rates. The renter-occupied percentage increased from 30% in 2013 to a peak of 40% in 2017 and 2018, before declining to 33% in 2022. Average rent prices have shown volatility over this period. In 2013, the average rent was $1,019, which decreased to $793 in 2015, then rose to a peak of $1,052 in 2017. Since then, average rent prices have generally declined, reaching $796 in 2022. This trend in rent prices may be influenced by the area's population growth, which increased from 6,549 in 2010 to 8,018 in 2022, potentially affecting housing demand and supply dynamics.
In 2023 and 2024, zip code 59270 experienced a shift in the housing market. The average home price decreased from $345,730 in 2022 to $303,302 in 2023, and further to $290,454 in 2024. This represents a 15.9% decrease over two years. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, which likely contributed to the cooling of the housing market.
Looking ahead, predictive models suggest that average home prices in zip code 59270 may continue to experience some downward pressure in the short term due to high interest rates. However, as the market adjusts, prices are expected to stabilize and potentially start a gradual upward trend over the next five years. Average rent prices are projected to remain relatively stable with potential for modest increases, influenced by the area's steady population growth and the balance between homeownership and renting trends.
In summary, zip code 59270 has demonstrated resilience in its housing market, with homeownership rates recovering in recent years despite fluctuations in average home prices and rent costs. The interplay between interest rates, population growth, and local economic factors continues to shape the housing landscape in this Montana community. The coming years are likely to see a period of adjustment followed by gradual growth in both the homeownership and rental markets.
