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Average Home Values and Ownership in Zip Code 59501: A Rural Montana Housing Study
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 59501, located in Herron, Montana, is a vast area covering 1,212.05 square miles. This rural region has experienced fluctuating homeownership rates and housing prices over the past decade, with notable trends in both the rental and ownership markets. From 2013 to 2022, homeownership rates in zip code 59501 showed some variation. In 2013, the homeownership rate was 67%, which increased slightly to 68% in 2014 and 2015. However, there was a decline to 61% in 2018 and 2019, before rebounding to 67% in 2022. During this same period, average home prices saw a substantial increase. In 2013, the average home price was $134,195, which rose steadily to $257,336 by 2022, representing a significant 91.8% increase over nine years.
The relationship between federal interest rates and homeownership rates in this area shows some correlation. For instance, when interest rates were relatively low in 2013 (0.11%), homeownership was at 67%. As interest rates began to rise, reaching 1.83% in 2018, homeownership dropped to 61%. However, despite rising interest rates in recent years, homeownership has rebounded, suggesting other factors may be influencing local housing decisions.
Renter percentages and average rent prices in zip code 59501 have also shown interesting trends. The percentage of renters increased from 33% in 2013 to 39% in 2018 and 2019, before decreasing back to 33% in 2022. Average rent prices fluctuated during this period, starting at $711 in 2013, dropping to $646 in 2015, and then rising to $690 in 2022. The population in the area has remained relatively stable, with 12,397 residents in 2013 and 12,212 in 2022, suggesting that changes in rental trends are not primarily driven by population shifts.
In 2023 and 2024, the housing market in zip code 59501 showed signs of stabilization. The average home price in 2023 was $252,891, a slight decrease from 2022. However, in 2024, prices rose marginally to $257,167. This occurs against the backdrop of significantly higher interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, the highest levels seen in over a decade.
Looking ahead, predictive models suggest that average home prices in zip code 59501 may continue to rise moderately over the next five years, potentially reaching around $280,000 by 2029. However, this growth rate is expected to be slower than the rapid increases seen in the past decade. Average rent prices are also projected to increase, potentially reaching approximately $800 per month by 2029, assuming current economic conditions persist.
In summary, zip code 59501 has experienced significant changes in its housing market over the past decade. Despite fluctuations, homeownership rates have remained relatively strong, ending at 67% in 2022. Average home prices have nearly doubled since 2013, while rent prices have shown more modest increases. The area has demonstrated resilience in the face of rising interest rates, maintaining stable homeownership levels. As we move forward, the housing market in this Montana zip code is expected to continue growing, albeit at a more moderate pace.
