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Average Home Values and Ownership in Zip Code 59015: A Rural Montana Community's Housing 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 59015, located in Mountain View Colony, Montana, presents an interesting case study in homeownership and housing market trends. This rural area has experienced significant fluctuations in its housing market over the past decade, with a general trend towards increasing homeownership and rising property values.
The ownership percentage in this zip code has shown a steady increase from 81% in 2013 to 87% in 2022. This upward trend in homeownership coincides with a substantial rise in average home prices. In 2013, the average home price was $174,952, which has more than doubled to $344,505 by 2022. This represents a remarkable 97% increase in average home values over a nine-year period.
The relationship between federal interest rates and homeownership rates in zip code 59015 appears to follow the typical pattern, where lower interest rates tend to encourage homeownership. For instance, as interest rates remained low between 2013 and 2016 (ranging from 0.11% to 0.40%), the homeownership rate held steady at around 81-82%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, we see a corresponding increase in homeownership to 87%, possibly due to residents rushing to secure mortgages before rates climbed further.
The renter percentage in zip code 59015 has decreased from 19% in 2013 to 13% in 2022, inversely mirroring the rise in homeownership. Despite this decrease in the renter population, average rent prices have shown an overall upward trend. The average rent increased from $643 in 2013 to $875 in 2022, representing a 36% increase. This rise in rent prices, despite a shrinking renter population, could be attributed to the overall increase in property values and the limited supply of rental properties in the area.
In 2023 and 2024, the housing market in zip code 59015 continued its upward trajectory. The average home price reached $356,570 in 2023 and further increased to $367,470 in 2024. This represents a 3.5% and 3.1% year-over-year increase respectively. Notably, federal interest rates also saw a significant jump, rising to 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and housing affordability in the area.
Looking ahead, based on the historical data and current trends, we can project continued growth in both average home prices and rent prices over the next five years. Assuming a conservative annual growth rate of 3%, we might expect average home prices in zip code 59015 to reach approximately $425,000 by 2029. Similarly, if rent prices continue to increase at their historical rate of about 4% annually, we could see average rents approaching $1,065 per month by 2029.
In summary, zip code 59015 has demonstrated a strong trend towards increased homeownership and rising property values over the past decade. The area has seen substantial growth in average home prices, nearly doubling since 2013, while maintaining a high rate of owner-occupied housing. Despite a decreasing renter population, rent prices have also shown significant increases. These trends, coupled with recent rises in interest rates, suggest a dynamic and evolving housing market in this Montana community.
