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Average Home Values and Ownership in Terry, Montana Zip Code 59349: A Decade of Change in a Vast Rural Area
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 59349, located in Terry, Montana, has experienced significant fluctuations in homeownership rates and housing prices over the past decade. This rural area, characterized by its low population density, has seen interesting shifts in its real estate market dynamics.
The homeownership rate in zip code 59349 has shown a declining trend since 2015. In 2015, the area boasted a high 92% homeownership rate, which gradually decreased to 75% by 2022. This 17 percentage point drop over seven years indicates a substantial shift in the local housing market. Concurrently, average home prices have shown an overall upward trend. From 2016 to 2022, average home prices increased from $106,214 to $130,553, representing a 22.9% increase over six years.
The relationship between federal interest rates and homeownership rates in this zip code appears to follow the general principle that lower interest rates encourage homeownership. For instance, when interest rates were relatively low between 2013 and 2015 (ranging from 0.11% to 0.13%), homeownership rates were at their peak, reaching 92% in 2015. As interest rates began to rise from 2016 onwards, homeownership rates started to decline. However, it's worth noting that other local factors likely influenced this trend as well.
As homeownership rates declined, the percentage of renters in zip code 59349 naturally increased. The renter-occupied housing units rose from 8% in 2015 to 25% in 2022, more than tripling over seven years. Interestingly, average rent prices have shown significant volatility during this period. In 2013, the average rent was $489, which rose dramatically to $1,124 in 2016 and 2017. However, it then dropped sharply to $492 in 2018, before rising again to $733 in 2022. This volatility in rent prices, coupled with the increasing renter population, suggests a complex and changing rental market in the area.
Looking at the most recent data, average home prices in zip code 59349 continued to rise in 2023 and 2024, reaching $136,274 and $142,803 respectively. This represents a further 9.4% increase from 2022 to 2024. Concurrently, federal interest rates have also increased significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may put pressure on homeownership rates in the near future.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 59349 will continue to rise, potentially reaching around $160,000 by 2029. This projection is based on the consistent upward trend observed since 2016. For rent prices, given their historical volatility, it's more challenging to predict a clear trend. However, if the recent stability around $700-$800 continues, we might see average rents settle in the $800-$900 range over the next five years.
In summary, zip code 59349 has experienced a significant shift from a predominantly homeowner market to one with an increasing renter population. Despite this, average home prices have continued to rise, suggesting ongoing demand for property ownership. The volatility in rent prices and the recent sharp increases in interest rates add complexity to the local real estate market dynamics. These trends indicate a changing landscape in Terry's housing market, with potential implications for both residents and investors in the coming years.
