Loading Content...
Average Home Values and Ownership in Zip Code 59758: West Yellowstone's Housing Market Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
West Yellowstone, Montana, zip code 59758, is a small town nestled near the entrance of Yellowstone National Park. This area has experienced significant shifts in homeownership rates and property values over the past decade, reflecting broader economic trends and local market dynamics. The ownership percentage in West Yellowstone has shown a remarkable upward trend, increasing from 48% in 2016 to 72% in 2022. This substantial rise in homeownership coincides with a significant increase in average home prices. In 2016, the average home price was $310,742, which rose dramatically to $598,136 by 2022, representing a 92.5% increase over six years. This strong correlation between rising homeownership rates and escalating home prices suggests a growing demand for property ownership in the area, potentially driven by factors such as local economic growth or increased interest in the region's natural attractions.
Federal interest rates have played a crucial role in shaping homeownership trends in West Yellowstone. The period from 2016 to 2020 saw relatively low interest rates, ranging from 0.4% to 2.16%. This low-interest environment likely contributed to the surge in homeownership, as it made mortgages more affordable for potential buyers. The sharp increase in homeownership from 66% in 2020 to 72% in 2022 occurred despite a rise in interest rates from 0.38% to 1.68%, indicating strong local demand that outweighed the impact of slightly higher borrowing costs.
Conversely, the percentage of renters in West Yellowstone has decreased significantly, from 52% in 2016 to 28% in 2022. Interestingly, despite this decline in the renter population, average rent prices have remained relatively stable, only fluctuating slightly between $518 and $540 during this period. This stability in rent prices, despite the decreasing renter population, could suggest a tight rental market with limited supply or indicate that the remaining rental properties are of higher quality, maintaining their value despite reduced demand.
In 2023, the average home price in West Yellowstone saw a slight decrease to $577,271 from the previous year's peak of $598,136. This minor correction occurred as interest rates climbed significantly to 5.02%. Moving into 2024, the average home price has rebounded to $601,280, surpassing the 2022 peak, even as interest rates continued to rise to 5.33%. This resilience in home prices despite higher interest rates suggests strong underlying demand for properties in the area.
Looking ahead, predictive models forecast continued growth in both average home and rent prices over the next five years. Home prices are expected to maintain their upward trajectory, potentially reaching around $700,000 by 2029, assuming consistent economic conditions and demand. Rent prices, which have been stable, may see modest increases, potentially reaching $550-$600 per month by 2029, reflecting ongoing demand for rental properties despite the shift towards homeownership.
In summary, West Yellowstone has experienced a significant shift towards homeownership, accompanied by substantial increases in property values. The stability of rent prices despite decreasing renter populations, coupled with the resilience of home prices in the face of rising interest rates, indicates a robust and desirable local real estate market. These trends suggest that West Yellowstone remains an attractive location for both homeowners and investors, with potential for continued growth in the coming years.
