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Average Home Values and Ownership in Zip Code 59070: Roberts's Resilient Real Estate Market
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 59070, located in Roberts, Montana, presents an intriguing case study of homeownership and housing market dynamics in a rural setting. This area has experienced fluctuations in ownership rates and significant changes in average home and rent prices over the past decade, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 59070 has remained relatively stable, with slight fluctuations between 2013 and 2022. In 2013, the ownership rate stood at 83%, which decreased to 76% by 2020, before rebounding to 78% in 2022. Interestingly, this period coincided with a substantial increase in average home prices. From 2016 to 2022, average home prices in the area rose dramatically from $276,318 to $509,813, representing an impressive 84.5% increase over six years.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. As interest rates remained low between 2013 and 2016 (ranging from 0.09% to 0.4%), homeownership rates initially declined from 83% to 79%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates stabilized around 78%. This suggests that other local factors may have played a more significant role in homeownership decisions than national interest rate trends.
Renter percentages in zip code 59070 have shown an inverse relationship to homeownership rates, naturally. The renter population increased from 17% in 2013 to a peak of 24% in 2020, before settling at 22% in 2022. Average rent prices have fluctuated over this period, with notable increases in recent years. In 2013, the average rent was $1,009, which decreased to $868 in 2017 before rising to $1,016 in 2022. This represents a modest overall increase of 0.7% from 2013 to 2022, significantly lower than the growth in home prices during the same period.
In 2023 and 2024, the housing market in zip code 59070 continued its upward trajectory. The average home price reached $512,752 in 2023 and further increased to $535,623 in 2024, marking a 4.5% year-over-year growth. This growth occurred despite the Federal Reserve's interest rate hikes, with rates rising to 5.02% in 2023 and 5.33% in 2024, levels not seen since before the 2008 financial crisis.
Looking ahead, based on the trends observed, we can project continued growth in both average home prices and rent in zip code 59070 over the next five years. Average home prices could potentially reach around $650,000 by 2029, assuming a conservative annual growth rate of 4%. Average rent prices, which have shown more volatility, might increase to approximately $1,200 per month, based on a projected 3% annual growth rate.
In summary, zip code 59070 has demonstrated resilience in its housing market, with steadily increasing home values despite fluctuations in homeownership rates. The area has maintained a high proportion of owner-occupied homes, even as average home prices have surged. Rent prices, while more volatile, have also trended upward, albeit at a slower pace than home values. These trends, combined with the recent increases in federal interest rates, suggest a robust and dynamic housing market in this Montana community.
