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Average Home Values and Ownership in Zip Code 59050: Trends in Rural Montana's Pryor
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 59050, located in Pryor, Montana, presents an interesting case study of housing trends in a rural area. Over the past decade, this region has experienced fluctuations in homeownership rates and significant changes in average home and rent prices, reflecting the dynamic nature of its real estate market.
The homeownership rate in zip code 59050 has shown some variability between 2013 and 2022. In 2013, the homeownership rate stood at 69%. It reached its peak in 2020 at 71%, before settling at 67% in 2022. During this same period, average home prices demonstrated a substantial upward trend. In 2016, the average home price was $103,775. By 2022, it had increased to $160,674, representing a remarkable 54.8% growth over six years.
When examining the relationship between federal interest rates and homeownership rates, we observe some correlation. For instance, in 2020, when interest rates dropped to 0.38%, the homeownership rate peaked at 71%. Conversely, as interest rates began to rise in 2022 to 1.68%, we saw a slight decrease in homeownership to 67%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options.
The renter percentage in zip code 59050 has fluctuated inversely to the homeownership rate, ranging from 29% to 35% between 2013 and 2022. Interestingly, average rent prices have shown significant volatility during this period. In 2013, the average rent was $521. It reached its highest point in 2019 at $745, before decreasing to $639 in 2022. This represents a 22.6% increase in average rent from 2013 to 2022, despite some fluctuations.
Looking at the most recent data, the average home price in zip code 59050 continued to rise in 2023, reaching $163,699. In 2024, it further increased to $172,711, showing a steady upward trend. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact homeownership rates and affordability in the coming years.
Applying predictive models to forecast 5-year trends, we anticipate continued growth in average home prices, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach approximately $200,000 by 2029. For rent prices, we expect a more moderate increase, potentially reaching around $700 by 2029, assuming the current economic conditions and population trends persist.
In summary, zip code 59050 has experienced notable growth in both average home prices and rent over the past decade. While homeownership rates have remained relatively stable, they have shown sensitivity to changes in interest rates. The recent surge in home prices, coupled with rising interest rates, may present challenges for potential homebuyers in the coming years. However, the area's real estate market has demonstrated resilience and consistent growth, suggesting a potentially stable investment environment for the foreseeable future.
