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Average Home Values and Ownership in Zip Code 59442: Fort Benton's Thriving Housing 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
Fort Benton, located in zip code 59442 in Montana, is a small community with a rich history as the oldest continuously inhabited settlement in the state. Over the past decade, this area has experienced notable shifts in homeownership rates and housing prices, reflecting broader economic trends and local dynamics. The homeownership rate in Fort Benton has shown a general upward trend, increasing from 65% in 2015 to 77% in 2022. This rise in homeownership coincides with a significant increase in average home prices. In 2013, the average home price was $118,331, which steadily climbed to $252,398 by 2022, representing a 113% increase over nine years. The most substantial year-over-year growth occurred between 2020 and 2021, with average home prices jumping from $182,995 to $215,662, a 17.8% increase in a single year.
Federal interest rates have played a crucial role in shaping homeownership trends in Fort Benton. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 0.38%. These low rates likely contributed to the increased homeownership, as they made mortgages more affordable for potential buyers. The sharp rise in homeownership from 70% in 2019 to 75% in 2020 coincides with the interest rate dropping from 2.16% to 0.38%, illustrating the impact of favorable financing conditions on home buying decisions.
As homeownership rates increased, the percentage of renters in Fort Benton decreased from 34% in 2015 to 23% in 2022. Despite this decline in the renter population, average rent prices showed an overall upward trend. The average rent increased from $589 in 2013 to $720 in 2022, a 22.2% rise over nine years. However, rent prices experienced some fluctuations, with a notable dip to $562 in 2018 before climbing to $725 in 2020, the highest point in the observed period. These rent price variations may be influenced by changes in the local economy and housing market dynamics.
Looking at the most recent data, the average home price in Fort Benton slightly decreased to $251,935 in 2023 but is projected to rise to $258,813 in 2024. This slight uptick occurs despite the federal interest rate increasing to 5.02% in 2023 and 5.33% in 2024, which typically would dampen home buying activity. This resilience in home prices suggests strong underlying demand in the local housing market.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Fort Benton will continue to rise, albeit at a more moderate pace than seen in recent years. The rate of increase may slow due to higher interest rates, but the limited housing supply and continued demand are likely to support price growth. Average rent prices are expected to follow a similar trajectory, with steady increases reflecting the overall appreciation of the local real estate market and potential shifts in housing preferences.
In summary, Fort Benton has experienced a significant increase in homeownership rates and average home prices over the past decade, influenced by favorable interest rates and local market conditions. The rental market, while shrinking in terms of occupancy, has seen overall growth in average rent prices. The resilience of home prices in the face of rising interest rates suggests a robust local housing market, with potential for continued growth in both home values and rental rates in the coming years.
