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Average Home Values and Ownership in Zip Code 59027: Doubling Prices and Declining Ownership
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 59027, located in South Glastonbury, Montana, presents an intriguing case study of rural housing dynamics. This expansive area, covering 155.05 square miles, has experienced fluctuating population and housing trends over the past decade. The ownership percentage has shown a slight decline, while average home prices have dramatically increased, and average rent prices have exhibited volatility.
From 2013 to 2022, the homeownership rate in zip code 59027 decreased from 83% to 76%. During this same period, average home prices saw a significant rise. In 2013, the average home price was $283,587, and by 2022, it had skyrocketed to $732,377, representing a staggering 158% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less attainable for some residents.
The federal interest rates have played a crucial role in shaping homeownership trends. From 2013 to 2016, interest rates remained extremely low, hovering around 0.1% to 0.4%. During this period, the homeownership rate remained relatively stable at around 83-84%. However, as interest rates began to climb from 2017 onwards, reaching 1.68% in 2022, the homeownership rate gradually declined to 76%. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The renter population in zip code 59027 has shown a corresponding increase as homeownership rates declined. The percentage of renters rose from 16% in 2013 to 23% in 2022. Interestingly, average rent prices have not followed a consistent upward trajectory like home prices. In 2013, the average rent was $577, which increased to a peak of $910 in 2018 before declining to $670 in 2022. This fluctuation in rent prices, coupled with the increasing renter population, suggests a complex interplay of factors affecting the rental market, possibly including changes in housing supply and local economic conditions.
Looking at the most recent data, the average home price in 2023 was $679,779, showing a slight decrease from the 2022 peak. However, in 2024, the average home price has rebounded to $687,817. Concurrently, federal interest rates have continued to rise, reaching 5.02% in 2023 and 5.33% in 2024. These high interest rates may continue to impact homeownership rates in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 59027 will continue to rise, albeit at a more moderate pace. The recent stabilization of prices suggests a potential cooling of the market, but the overall trend remains upward. For rent prices, the forecast indicates a potential increase over the next five years, as the renter population grows and housing demand persists.
In summary, zip code 59027 has experienced a notable shift in its housing landscape over the past decade. The decline in homeownership rates, coupled with dramatically rising home prices, points to increasing challenges in housing affordability. The rental market has grown in response, but with fluctuating rent prices. As interest rates remain high, these trends are likely to continue shaping the housing dynamics in this Montana community.
