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Average Home Values and Ownership in Zip Code 59421: A Decade of Growth in Rural 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 59421, located in Ulm, Montana, presents an intriguing case study of housing trends in a rural setting. This expansive area, covering 777.84 square miles, has experienced fluctuating homeownership rates and housing prices over the past decade. The overall trend shows a slight decline in homeownership, coupled with a significant increase in average home prices, while average rent prices have remained relatively stable.
The homeownership rate in zip code 59421 has shown a gradual decline from 82% in 2013 to 79% in 2022. During this same period, average home prices have risen dramatically, from $179,131 in 2013 to $356,574 in 2022, representing a 99% increase. This inverse relationship suggests that rising home prices may be making homeownership less attainable for some residents. For example, in 2016, when the homeownership rate was 73% (the lowest in the dataset), the average home price was $195,481. As prices continued to climb, reaching $215,768 in 2018, the homeownership rate rebounded slightly to 76%.
Federal interest rates have played a role in homeownership trends in this area. The period from 2013 to 2015 saw historically low interest rates (0.11% to 0.13%), coinciding with higher homeownership rates of 82% to 75%. As interest rates began to rise from 2016 onwards, reaching 1.83% in 2018, homeownership rates fluctuated but generally remained lower than the 2013 peak. However, the relationship is not always straightforward, as evidenced by the 80% homeownership rate in 2020 despite rising home prices, possibly influenced by the low 0.38% interest rate that year.
Renter percentages in zip code 59421 have generally mirrored the inverse of homeownership rates, rising from 18% in 2013 to 20% in 2022. Interestingly, average rent prices have remained relatively stable during this period, only increasing from $685 in 2013 to $683 in 2022, with some fluctuations in between. The highest average rent was $692 in 2016, coinciding with the lowest homeownership rate of 73%. The population has remained relatively stable, ranging from 2,231 to 2,436 residents, which may contribute to the steady rent prices despite changes in the renter percentage.
Looking at the most recent data, average home prices in zip code 59421 continued their upward trajectory, reaching $372,344 in 2023 and $389,554 in 2024. This represents a 9.2% increase from 2022 to 2024. Simultaneously, federal interest rates have risen significantly, from 1.68% in 2022 to 5.02% in 2023, and further to 5.33% in 2024. These higher interest rates may impact future homeownership rates and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 59421 will continue to rise, potentially reaching around $450,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. Average rent prices, which have been more stable, are expected to show a modest increase, potentially reaching around $725 by 2029. However, these projections may be influenced by broader economic factors and local market conditions.
In summary, zip code 59421 has experienced a notable increase in average home prices over the past decade, with a slight decline in homeownership rates. Rent prices have remained relatively stable, while renter percentages have marginally increased. The area's housing market appears to be becoming more expensive, potentially impacting affordability for some residents. The recent sharp rise in interest rates, combined with increasing home prices, may further influence homeownership trends in the coming years.
