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Average Home Values and Ownership in Zip Code 59044: A Decade of Change in Laurel, Montana
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 59044, located in Laurel, Montana, has experienced significant changes in its housing market over the past decade. This area has seen a notable shift in homeownership rates and fluctuations in both average home prices and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 59044 has shown a gradual decline from 2013 to 2022. In 2013, 80% of residents were homeowners, but by 2022, this figure had decreased to 75%. Simultaneously, average home prices have experienced substantial growth. In 2013, the average home price was $193,770, and by 2022, it had risen to $349,400, representing an impressive 80% increase over this period. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less attainable for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 59044. During periods of low interest rates, such as from 2013 to 2016 when rates remained below 0.5%, the homeownership rate remained relatively stable at around 77-78%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate declined to 75%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The rental market in zip code 59044 has also experienced notable changes. The percentage of renters increased from 20% in 2013 to 25% in 2022, mirroring the decline in homeownership. Average rent prices have shown significant fluctuations during this period. In 2013, the average rent was $752, which peaked at $1,192 in 2016 before declining to $1,015 in 2022. This represents a 35% increase in average rent from 2013 to 2022, despite some volatility. The increase in the renter population, from 11,804 in 2013 to 14,028 in 2022, may have contributed to the overall upward pressure on rent prices.
In 2023 and 2024, the housing market in zip code 59044 continued to evolve. The average home price rose to $367,863 in 2023 and further increased to $383,744 in 2024, indicating a sustained upward trend in property values. Concurrently, federal interest rates have significantly increased, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 59044 are likely to continue their upward trajectory over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by the growing population and the shift towards renting. However, the rate of increase may be moderated by the overall economic conditions and local market factors.
In summary, zip code 59044 has experienced a decline in homeownership rates alongside significant increases in average home prices from 2013 to 2022. The rental market has grown, with both the percentage of renters and average rent prices increasing over the same period. The recent surge in interest rates and continued rise in home prices in 2023 and 2024 suggest that the housing market in this area will remain dynamic, with potential challenges for aspiring homeowners and ongoing changes in the rental landscape.
