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Average Home Values and Ownership in Zip Code 59522: A Rural Montana Case 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 59522, located in Riverview Colony, Montana, presents an intriguing case study of housing dynamics in a rural setting. This area has experienced fluctuations in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local demographic shifts.
The homeownership rate in zip code 59522 has shown notable variations from 2013 to 2022. In 2013, the ownership rate stood at 62%, rising to a peak of 67% in 2016. However, there was a significant decline to 52% in 2020, before rebounding to 59% in 2022. Interestingly, average home prices have shown a consistent upward trend since 2016, despite these fluctuations in ownership rates. The average home price increased from $141,497 in 2016 to $232,958 in 2022, representing a substantial 64.6% increase over six years.
Federal interest rates have played a role in shaping homeownership trends in the area. The period from 2013 to 2015 saw historically low interest rates, hovering around 0.1-0.13%. During this time, homeownership rates remained relatively stable at 62-66%. As interest rates began to rise from 2016 onwards, reaching 1.83% in 2018, homeownership rates initially held steady but then declined to 52% in 2020 when interest rates dropped sharply to 0.38% due to the global pandemic.
Renter percentages in zip code 59522 have inversely mirrored homeownership rates, ranging from a low of 33% in 2016 to a high of 48% in 2020. Average rent prices have shown a general upward trend, increasing from $535 in 2013 to $596 in 2022, a 11.4% rise. However, this increase has not been as dramatic as the rise in home prices. The population has fluctuated over the years, peaking at 1,351 in 2020 before declining to 1,092 in 2022, which may have influenced rental demand and prices.
In 2023 and 2024, average home prices in zip code 59522 have stabilized, with a slight increase to $233,501 in 2023 and a minor decrease to $231,673 in 2024. This leveling off coincides with a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024, potentially cooling the housing market.
Looking ahead, predictive models suggest that average home prices in zip code 59522 may continue to experience moderate growth over the next five years, albeit at a slower pace than the rapid increases seen from 2016 to 2022. Average rent prices are expected to follow a similar trend, with gradual increases likely to continue, influenced by local economic conditions and housing demand.
The most significant discoveries in zip code 59522 include the substantial increase in average home prices from 2016 to 2022, despite fluctuations in homeownership rates. The inverse relationship between homeownership and rental rates highlights the dynamic nature of the local housing market. The recent stabilization of home prices in 2023 and 2024, coinciding with rising interest rates, suggests a potential shift in market dynamics. Moving forward, both home prices and rent are expected to continue their upward trajectory, albeit at a more moderate pace, reflecting the area's evolving economic landscape and housing demand.
