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Average Home Values and Ownership in Victor, Montana (Zip Code 59875): A Decade of Dramatic Change
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 59875, located in Victor, Montana, presents an intriguing case study of homeownership and housing market dynamics. This rural area has experienced significant shifts in ownership percentages and housing prices over the past decade, reflecting broader economic trends and local market conditions.
The homeownership rate in Victor has shown a remarkable upward trend, increasing from 69% in 2013 to 85% in 2022. This substantial rise in homeownership coincides with a significant increase in average home prices, which grew from $215,435 in 2013 to $614,429 in 2022, representing a 185% increase over nine years. This correlation suggests a strong local housing market with growing demand for homeownership despite rising prices.
The relationship between federal interest rates and homeownership rates in Victor appears to follow the expected pattern. As interest rates remained historically low between 2013 and 2021, ranging from 0.08% to 2.16%, homeownership rates steadily increased. This trend aligns with the general principle that lower interest rates make mortgages more affordable, encouraging home buying. The sharp rise in homeownership from 82% in 2020 to 85% in 2022, despite a slight increase in interest rates to 1.68% in 2022, suggests a strong local desire for homeownership that persisted even as rates began to rise.
Conversely, the percentage of renters in Victor has declined significantly, from 31% in 2013 to 15% in 2022. Despite this decrease in the renter population, average rent prices have shown volatility. Rent prices peaked at $912 in 2017, then fluctuated, reaching $860 in 2022. This trend suggests that even with a smaller renter pool, demand for rental properties remains relatively strong, possibly due to the area's overall population growth from 3,940 in 2013 to 4,428 in 2022.
In 2023 and 2024, the housing market in Victor showed signs of stabilization after years of rapid growth. The average home price slightly decreased to $588,454 in 2023 but rebounded to $613,669 in 2024. This occurred amid significantly higher federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher rates typically make borrowing more expensive, potentially cooling the housing market, yet prices in Victor have remained relatively robust.
Looking ahead, predictive models suggest that average home prices in Victor may continue to experience moderate growth over the next five years, albeit at a slower pace than the rapid increases seen in the early 2020s. Average rent prices are projected to stabilize and potentially increase slightly, reflecting the area's continued appeal and limited rental inventory.
In summary, Victor has witnessed a substantial increase in homeownership rates alongside significant growth in average home prices over the past decade. The interplay between low interest rates, rising home values, and a growing population has created a dynamic housing market. While the rental market has shrunk proportionally, it remains an important component of the local housing landscape. The recent stabilization in home prices and higher interest rates may signal a new phase in the area's housing market, potentially leading to more balanced growth in the coming years.
