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Average Home Values and Ownership in Zip Code 59718: A Decade of Change in Four Corners, 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 59718, located in Four Corners, Montana, has experienced significant demographic and real estate changes over the past decade. This area has seen a steady increase in population and housing prices, with notable shifts in homeownership rates and rental costs.
The ownership percentage in this zip code has shown a gradual decline from 64% in 2013 to 56% in 2022, while average home prices have risen substantially. In 2013, the average home price was $253,877, which increased to $640,712 by 2022, representing a 152% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may be making homeownership less attainable for some residents.
Federal interest rates have played a role in homeownership trends in zip code 59718. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable at around 61-62%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined to 56%. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The renter percentage in zip code 59718 has increased from 36% in 2013 to 44% in 2022, correlating with rising average rent prices. In 2013, the average rent was $1,252, which increased to $1,286 by 2022, a modest 2.7% increase over nine years. However, it's worth noting that rent prices fluctuated during this period, reaching a peak of $1,360 in 2021. The increasing renter population, which grew from about 9,767 in 2013 to 17,847 in 2022, may have contributed to the upward pressure on rent prices.
In 2023, the average home price in zip code 59718 slightly decreased to $629,527, marking a 1.7% drop from 2022. However, 2024 has seen a rebound, with average home prices rising to $664,267, a 5.5% increase from 2023. This uptick occurs despite the federal interest rate reaching 5.33% in 2024, which is significantly higher than previous years and might typically discourage home purchases.
Looking ahead, based on historical trends and current market conditions, we can expect the average home prices in zip code 59718 to continue their upward trajectory, albeit at a potentially slower rate due to high interest rates. A conservative estimate suggests average home prices could reach around $750,000 to $800,000 in the next five years. Average rent prices are likely to follow a similar upward trend, potentially reaching $1,400 to $1,500 per month in the same period, driven by increasing demand for rentals as homeownership becomes more challenging.
In summary, zip code 59718 has experienced a significant increase in population and average home prices over the past decade, accompanied by a shift from homeownership to renting. The interplay between rising property values, increasing interest rates, and changing demographics has reshaped the local real estate landscape, creating both opportunities and challenges for residents and potential homebuyers in this Montana community.
