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Average Home Values and Ownership in Zip Code 59218: Culbertson's Rural Real Estate Trends
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 59218, located in Culbertson, Montana, has experienced notable fluctuations in population and housing dynamics over the past decade. This rural area, spanning 243.88 square miles, has seen interesting shifts in homeownership rates and housing prices, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 59218 has shown a general upward trend from 2013 to 2022, with some fluctuations. In 2013, the homeownership rate stood at 71%, rising to a peak of 82% in 2020 before settling at 74% in 2022. This overall increase in homeownership coincided with a significant rise in average home prices. From 2016 to 2022, average home prices in the area surged from $156,893 to $269,969, representing a substantial 72% increase over six years.
The relationship between federal interest rates and homeownership rates in this zip code shows some interesting patterns. Despite historically low interest rates from 2013 to 2016 (ranging from 0.09% to 0.4%), homeownership rates remained relatively stable around 72-74%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates actually increased, peaking at 82% in 2020. This suggests that local factors may have played a more significant role in driving homeownership than national interest rate trends in this particular area.
Renter percentages in zip code 59218 have generally decreased as homeownership rates increased. The renter-occupied housing percentage dropped from 29% in 2013 to 26% in 2022, with a low of 18% in 2020. Interestingly, average rent prices have shown considerable volatility. Starting at $480 in 2013, rent prices peaked at $931 in 2014, then fluctuated before settling at $836 in 2022. This represents a 74% increase in average rent from 2013 to 2022, despite the overall decrease in the percentage of renters.
Looking at the most recent data, average home prices in zip code 59218 continued to rise in 2023, reaching $277,310. However, in 2024, prices have slightly decreased to $277,293, indicating a potential stabilization in the market. Concurrently, federal interest rates have increased significantly, rising to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates could potentially impact future homeownership trends and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 59218 may continue to rise, but at a more moderate pace. The recent stabilization in prices and higher interest rates suggest a potential cooling of the market. Average rent prices are expected to follow a similar pattern, with modest increases likely over the next five years, influenced by overall housing market conditions and local economic factors.
In summary, zip code 59218 has experienced a notable increase in homeownership rates and significant growth in both average home prices and rent prices over the past decade. The area has shown resilience in maintaining high homeownership rates despite rising interest rates, suggesting strong local demand for housing. However, the recent stabilization in home prices and historically high interest rates may signal a shift towards a more balanced housing market in the coming years.
