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Average Home Values and Ownership in Zip Code 59731: A Rural Montana Community's Real Estate Dynamics
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 59731, located in Garrison, Montana, is a rural area spanning 192.27 square miles. This sparsely populated region has seen fluctuating homeownership rates and housing prices over the past decade, with recent trends indicating a shift in the local real estate market.
The homeownership rate in zip code 59731 has shown some variability over the years, with a general trend towards higher ownership. In 2013, the homeownership rate was 78%, which increased to 83% by 2017. However, there was a slight decline to 76% in 2022. Interestingly, this fluctuation in homeownership coincided with significant changes in average home prices. From 2015 to 2022, average home prices in the area increased dramatically, rising from $174,403 to $347,023, representing a substantial 99% increase over seven years.
Federal interest rates have played a role in homeownership trends in zip code 59731. The period from 2015 to 2020 saw relatively low interest rates, ranging from 0.13% to 2.16%. This low-interest environment likely contributed to the increased homeownership rates observed during this time, as it made financing more accessible to potential buyers. However, the sharp rise in interest rates to 1.68% in 2022 may have contributed to the slight decrease in homeownership that year.
Renter percentages in zip code 59731 have generally mirrored the inverse of homeownership rates. In 2013, renters occupied 22% of housing units, which decreased to 16% by 2017 as homeownership peaked. By 2022, the renter percentage had increased slightly to 23%. Average rent prices have shown a general downward trend over the past decade, decreasing from $532 in 2013 to $488 in 2022, a 8.3% reduction. This trend is noteworthy, especially considering the area's relatively stable population, which stood at 245 in 2022.
Moving into more recent data, the average home price in zip code 59731 continued its upward trajectory, reaching $355,097 in 2023 and further increasing to $373,913 in 2024. This represents a 7.8% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and housing affordability in the area.
Looking ahead, based on the observed trends and current market conditions, we can project potential scenarios for the next five years. Average home prices in zip code 59731 may continue to rise, albeit at a potentially slower rate due to higher interest rates. A conservative estimate might see average home prices reaching approximately $425,000 by 2029. Average rent prices, which have been declining, may stabilize or potentially increase slightly if demand for rentals grows due to decreased affordability of home purchases. We might see average rents return to around $520 by 2029.
In summary, zip code 59731 has experienced significant growth in average home prices over the past decade, coupled with fluctuating but generally high homeownership rates. The recent sharp increase in interest rates may impact future homeownership trends and housing affordability. Meanwhile, average rent prices have been on a downward trend, but this may reverse if home purchasing becomes less accessible due to rising prices and higher interest rates.
