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Average Home Values and Ownership in Zip Code 59523: A Rural Montana Real Estate 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 59523, located in Chinook, Montana, is a vast rural area spanning 1,451.97 square miles with a population density of just 1 person per square mile. This sparsely populated region has experienced fluctuating homeownership rates and housing market trends over the past decade, reflecting the unique dynamics of rural Montana real estate.
The homeownership rate in zip code 59523 has shown a general declining trend from 2013 to 2022, with some fluctuations. In 2013, the homeownership rate stood at 73%, but by 2022, it had decreased to 68%. This decline coincided with a significant increase in average home prices. In 2016, the average home price was $119,252, and it steadily rose to $220,022 by 2022, representing an impressive 84.5% increase over six years.
The relationship between federal interest rates and homeownership rates in this area is notable. As interest rates remained low from 2013 to 2021, ranging from 0.08% to 1.83%, the homeownership rate experienced some volatility but generally trended downward. This suggests that other factors, such as rising home prices, may have had a stronger influence on homeownership than low interest rates in this particular market.
Renter percentages in zip code 59523 have shown an overall increasing trend, rising from 27% in 2013 to 32% in 2022. Interestingly, average rent prices have been more volatile. They peaked at $891 in 2015, dropped to $568 in 2020, and then rose again to $680 in 2022. This volatility in rent prices, combined with the steady increase in home values, may have contributed to the shift towards renting for some residents.
In 2023 and 2024, the housing market in zip code 59523 continued its upward trajectory. The average home price reached $227,976 in 2023 and further increased to $235,407 in 2024. This represents a 7% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates in the area.
Looking ahead, predictive models suggest that average home prices in zip code 59523 will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. We can expect average home prices to potentially reach around $260,000 to $280,000 by 2029. Average rent prices are also projected to increase, possibly reaching $750 to $800 per month in the same timeframe, assuming the current trends continue.
In summary, zip code 59523 has experienced a gradual shift from homeownership to renting, coupled with substantial increases in average home prices. The area's housing market has shown resilience and growth, even in the face of changing economic conditions and interest rates. These trends reflect the evolving nature of rural Montana's real estate landscape and the ongoing adjustments in housing preferences among its residents.
