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Average Home Values and Ownership in Zip Code 59714: A Decade of Growth in Sedan, Montana
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 59714, located in Sedan, Montana, has experienced significant demographic and housing market changes over the past decade. This rural area has seen a steady increase in population and homeownership rates, coupled with notable fluctuations in average home prices and average rent costs.
The homeownership rate in zip code 59714 has shown a general upward trend from 2013 to 2022. In 2013, the homeownership rate was 70%, which increased to 75% by 2020, indicating a growing preference for homeownership in the area. Concurrently, average home prices have seen substantial growth. In 2013, the average home price was $211,915, which rose dramatically to $548,683 by 2022, representing a 159% increase over this period. This trend suggests a strong correlation between rising homeownership rates and increasing property values in the area.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 59714. From 2013 to 2016, when interest rates were at historic lows (ranging from 0.11% to 0.40%), homeownership rates increased from 70% to 73%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. As interest rates began to rise from 2017 onwards, homeownership rates stabilized around 73-74%, showing resilience in the face of increasing borrowing costs.
Renter percentages in zip code 59714 have inversely mirrored the homeownership trends, decreasing from 30% in 2013 to 25% in 2020, before slightly rebounding to 28% in 2022. Average rent prices have shown volatility over this period. In 2013, the average rent was $1,080, which increased to $1,196 by 2020. However, there was a significant jump to $1,291 in 2021, followed by a decrease to $1,189 in 2022. This fluctuation in rent prices, coupled with the area's population growth from 19,848 in 2013 to 25,529 in 2022, suggests a complex rental market influenced by both supply and demand factors.
Looking at the most recent data, the average home price in zip code 59714 decreased slightly from $548,683 in 2022 to $535,769 in 2023, representing a 2.3% decline. However, in 2024, the average home price has rebounded to $554,564, a 3.5% increase from 2023. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 59714 will continue to rise, albeit at a more moderate pace. By 2029, average home prices could potentially reach the $650,000 to $700,000 range. Average rent prices are expected to follow a similar upward trajectory, potentially reaching $1,400 to $1,500 per month by 2029. However, these projections are subject to various economic factors and local market conditions.
In summary, zip code 59714 has demonstrated a robust housing market with increasing homeownership rates and substantial growth in average home prices over the past decade. The area has shown resilience in maintaining high homeownership rates despite rising interest rates. The rental market has experienced more volatility, with fluctuating average rent prices and a general decrease in the percentage of renters. As the population continues to grow and interest rates remain high, the housing market in this Montana zip code is likely to remain dynamic, with continued upward pressure on both home prices and rents.
