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Average Home Values and Ownership in Zip Code 59725: A Decade of Growth in Dillon, 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 59725, located in Dillon, Montana, encompasses an area of 2,542.62 square miles. This expansive rural region has experienced notable shifts in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local market dynamics.
The ownership percentage in this zip code has shown moderate fluctuations, ranging from 62% to 67% between 2013 and 2022. Concurrently, average home prices have demonstrated a consistent upward trajectory. In 2013, the average home price was $159,365, which steadily increased to $353,516 by 2022, representing a remarkable 121.8% growth over this period. This substantial appreciation in home values has outpaced changes in homeownership rates, suggesting that while property values have risen significantly, the proportion of homeowners has remained relatively stable.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 59725. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained relatively stable, ranging from 62% to 64%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, there was a slight increase in homeownership, peaking at 67% in 2018 and 2019. This trend suggests that despite rising interest rates, other factors such as local economic conditions and housing market dynamics may have influenced homeownership decisions in this area.
Renter percentages in zip code 59725 have inversely mirrored homeownership rates, fluctuating between 33% and 38% from 2013 to 2022. Average rent prices have shown an overall upward trend, albeit with some volatility. In 2013, the average rent was $667, which increased to $771 by 2022, representing a 15.6% rise. Notably, there was a significant jump in average rent from $673 in 2019 to $738 in 2020, a 9.7% increase in a single year. This spike coincided with a slight decrease in the renter percentage from 33% to 37%, possibly indicating increased demand for rental properties during this period.
In 2023 and 2024, average home prices in zip code 59725 continued their upward trajectory, reaching $358,220 in 2023 and $367,781 in 2024. This represents a modest 2.7% increase from 2023 to 2024. Concurrently, federal interest rates rose significantly, hitting 5.02% in 2023 and 5.33% in 2024, the highest levels seen in over a decade. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Looking ahead, based on historical trends and current market conditions, we can project that average home prices in zip code 59725 will likely continue to appreciate, albeit at a more moderate pace. Over the next five years, average home prices could potentially reach the $400,000 to $450,000 range. Average rent prices are also expected to continue their upward trend, potentially reaching $850 to $900 per month within the same timeframe. However, these projections may be influenced by various factors, including economic conditions, population growth, and housing supply dynamics.
In summary, zip code 59725 has experienced significant growth in average home prices over the past decade, with relative stability in homeownership rates. The rental market has shown steady growth in prices, with some fluctuations in the proportion of renters. The recent sharp increase in interest rates, combined with continued appreciation in home values, may present challenges for potential homebuyers in the coming years. These trends underscore the dynamic nature of the housing market in this Montana zip code and highlight the importance of monitoring both local and national economic factors in understanding future housing trends.
