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Average Home Values and Ownership in Zip Code 59638: Jefferson City's Remarkable Growth
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
Jefferson City, located in zip code 59638 in Montana, is a small community that has experienced interesting shifts in homeownership and housing prices over the past decade. This area has seen a general trend of increasing homeownership rates alongside rising average home prices, while rental rates have declined.
The homeownership rate in Jefferson City has shown a steady increase from 2013 to 2022. In 2013, 78% of housing units were owner-occupied, and this figure rose to 84% by 2022. This upward trend in homeownership coincided with a significant increase in average home prices. In 2013, the average home price was $217,485, and by 2022, it had more than doubled to $532,999. This represents a remarkable 145% increase in average home prices over a nine-year period.
The trend of increasing homeownership rates in Jefferson City appears to have been influenced by federal interest rates. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership rates increased from 78% to 80%. As interest rates began to rise more significantly from 2017 onwards, homeownership rates continued to climb, reaching 84% by 2022. This suggests that while low interest rates initially encouraged homeownership, other factors such as local economic conditions or housing market dynamics may have sustained the trend even as rates increased.
Conversely, the percentage of renters in Jefferson City has decreased over time. In 2013, 22% of housing units were renter-occupied, but by 2022, this figure had dropped to 16%. Interestingly, despite the decrease in renter-occupied units, average rent prices have shown considerable fluctuation. Average rent peaked at $1,130 in 2015 before declining to $808 in 2022. This represents a 28.5% decrease in average rent prices from their peak, which could be attributed to factors such as changes in local housing supply or economic conditions.
In 2023 and 2024, the housing market in Jefferson City continued to evolve. The average home price in 2023 was $548,881, showing a further increase from 2022. In 2024, the average home price rose to $574,296, indicating continued growth in the local real estate market. Notably, federal interest rates increased significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership trends.
Looking ahead, based on the historical data and current trends, we can project potential scenarios for the next five years. If the current trajectory continues, average home prices in Jefferson City could potentially reach around $700,000 by 2029. However, the rate of increase may slow down due to higher interest rates. Average rent prices, which have been declining, might stabilize or see a slight increase, potentially reaching around $850 per month by 2029, assuming local economic conditions remain stable.
In summary, Jefferson City has experienced a significant increase in homeownership rates and average home prices over the past decade, while rental rates have declined. The community has shown resilience in maintaining high homeownership rates despite fluctuating interest rates. The continued rise in average home prices, even in the face of higher interest rates in recent years, suggests a strong local housing market. These trends indicate a growing preference for homeownership in this Montana community, potentially driven by factors such as local economic stability or the area's desirability as a place to live.
