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Average Home Values and Ownership in Zip Code 59645: White Sulphur Springs' Doubling Property Prices
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
White Sulphur Springs, located in zip code 59645 in Montana, has experienced significant changes in homeownership rates and housing prices over the past decade. This small city, known for its natural hot springs and scenic mountain views, has seen a notable shift towards increased homeownership and rising average home prices in recent years.
The ownership percentage in White Sulphur Springs has shown a remarkable upward trend, particularly from 2020 onwards. In 2019, the homeownership rate was 72%, but it dramatically increased to 86% in 2020 and further rose to 92% in 2021. This surge in homeownership coincided with a substantial increase in average home prices. From 2015 to 2022, average home prices in the area more than doubled, rising from $133,539 to $296,524. This trend suggests a strong correlation between rising home values and increased homeownership rates in the area.
The relationship between federal interest rates and homeownership rates in White Sulphur Springs appears to follow the general economic principle that lower interest rates encourage homeownership. For instance, the period from 2020 to 2021 saw historically low interest rates (0.38% in 2020 and 0.08% in 2021), which coincided with the significant jump in homeownership rates from 86% to 92%. This aligns with the notion that lower interest rates make mortgages more affordable, potentially driving more people to purchase homes.
Conversely, the renter percentage in White Sulphur Springs has decreased significantly in recent years. In 2019, renters made up 28% of the population, but this figure dropped to 14% in 2020 and further decreased to 8% in 2021. Interestingly, despite the declining renter population, average rent prices have shown volatility. The average rent peaked at $887 in 2013, dropped to a low of $462 in 2016, and then rose again to $630 in 2022. This fluctuation in rent prices, coupled with the decreasing renter population, suggests a complex rental market dynamic in the area.
In 2023 and 2024, White Sulphur Springs continued to see growth in average home prices, reaching $303,736 in 2023 and $311,408 in 2024. This represents a 2.4% increase from 2023 to 2024. Notably, federal interest rates have also risen significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, the continued rise in home prices suggests sustained demand in the local housing market.
Looking ahead, based on the observed trends, we can predict that average home prices in White Sulphur Springs may continue to increase over the next five years, albeit potentially at a slower rate due to higher interest rates. The average home price could potentially reach around $350,000 by 2029. Rent prices, which have shown volatility, may stabilize or increase slightly, possibly reaching an average of $700-$750 per month in the next five years. However, these predictions are subject to various economic factors and local market conditions.
In summary, White Sulphur Springs has experienced a significant shift towards homeownership, accompanied by substantial increases in average home prices. The inverse relationship between homeownership and renter percentages, coupled with the impact of interest rates, paints a picture of a dynamic and evolving housing market in this Montana city. The continued rise in home prices, even in the face of increasing interest rates, suggests a robust local housing market with potential for further growth in the coming years.
