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Average Home Values and Ownership in Zip Code 59221: Fairview's Rural Real Estate Dynamics
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
Fairview, located in zip code 59221 in Montana, is a small rural community that has experienced significant changes in its housing market over the past decade. The area has seen a notable increase in homeownership rates and a substantial rise in rental prices, reflecting broader economic trends and local dynamics. From 2013 to 2022, Fairview observed a general upward trend in homeownership rates. The percentage of residents owning their homes increased from 69% in 2013 to 75% in 2022, with a peak of 79% in 2021. This shift towards higher homeownership coincided with dramatic changes in average rent prices. Over the same period, the average rent in the area rose significantly from $333 in 2013 to $889 in 2022, representing a 167% increase.
The relationship between federal interest rates and homeownership rates in Fairview shows some correlation. As interest rates remained low from 2013 to 2016, ranging from 0.1% to 0.4%, homeownership rates increased from 69% to 70%. This trend continued as interest rates gradually rose, with homeownership reaching 76% in 2019 when the federal interest rate was 2.16%. The low interest rate environment likely contributed to more affordable financing options, encouraging homeownership.
The renter population in Fairview has decreased proportionally as homeownership increased. In 2013, 31% of residents were renters, and this percentage dropped to 25% by 2022. Despite this decrease in the renter population, average rent prices saw a substantial increase. The most dramatic rise occurred between 2015 and 2016, when average rent jumped from $527 to $832, a 58% increase in just one year. This sharp increase in rent prices may have incentivized more residents to consider homeownership as a more affordable long-term option.
In 2023 and 2024, significant changes in the economic landscape affected the housing market. The federal interest rate rose sharply to 5.02% in 2023 and further increased to 5.33% in 2024. These higher interest rates may impact homeownership trends and affordability in the coming years.
Based on the historical data and current trends, potential scenarios for the next five years can be projected. If the current trajectory continues, average rent prices might continue rising, potentially reaching around $1,100-$1,200 by 2029. However, the rate of increase may slow down due to the higher interest rate environment. Homeownership rates might stabilize or slightly decrease as higher mortgage rates could make purchasing homes less affordable for some residents.
In summary, Fairview has experienced a shift towards higher homeownership rates over the past decade, coupled with significant increases in average rent prices. The interplay between federal interest rates, local economic conditions, and housing affordability has shaped these trends. As we move forward, the housing market in this zip code will likely continue to evolve in response to broader economic factors and local demographic changes.
