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Average Home Values and Ownership in Zip Code 59471: A Rural Montana Housing Market Analysis
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 59471, located in Roy, Montana, is a rural area characterized by low population density and a predominantly owner-occupied housing market. Over the past decade, this region has experienced fluctuations in homeownership rates and housing prices, reflecting broader economic trends and local dynamics.
The homeownership rate in zip code 59471 has remained relatively stable, hovering around 73-75% between 2013 and 2022. Despite this consistency, average home prices have shown a significant upward trend. In 2016, the average home price was $124,605, which steadily increased to $260,617 by 2022, representing a substantial 109% increase over six years. This rise in home values did not significantly impact homeownership rates, suggesting a resilient local housing market where residents maintained their ability to own homes despite rising prices.
Federal interest rates have played a role in shaping homeownership trends in the area. From 2016 to 2022, interest rates fluctuated, starting at 0.4% in 2016, peaking at 2.16% in 2019, and then dropping to 0.08% in 2021 before rising to 1.68% in 2022. The relatively low interest rates during this period likely contributed to the stability in homeownership rates, making mortgages more affordable for residents despite rising home prices.
Renter percentages in zip code 59471 have remained relatively low, ranging from 23% to 28% between 2013 and 2022. Average rent prices have shown some volatility, with a general downward trend. In 2013, the average rent was $592, which decreased to $538 by 2022, representing a 9.1% decline. This decrease in rent prices, coupled with the area's growing population from 396 in 2013 to 509 in 2022, suggests that the rental market has remained competitive and affordable for tenants.
In 2023 and 2024, the housing market in zip code 59471 experienced some changes. The average home price slightly decreased from $260,617 in 2022 to $252,905 in 2023, followed by a small increase to $255,199 in 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions in the area.
Looking ahead, based on historical trends and current market conditions, we can anticipate continued growth in average home prices for zip code 59471 over the next five years. The area may see average home prices reaching approximately $300,000 by 2029, assuming a moderate annual growth rate of 3-4%. Average rent prices are likely to stabilize and potentially increase slightly, possibly reaching around $600 per month by 2029, reflecting a gradual 2% annual increase from the 2022 levels.
In summary, zip code 59471 demonstrates a stable housing market with a strong preference for homeownership. Despite significant increases in average home prices, the area has maintained high homeownership rates. The rental market has remained affordable, with decreasing average rents over the past decade. Future trends indicate continued growth in home values and a potential slight increase in rent prices, reflecting the area's steady population growth and economic stability.
