Loading Content...
Average Home Values and Ownership in Zip Code 59827: Rural Montana'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
Zip code 59827, located in Conner, Montana, is a rural area spanning 235.04 square miles. This region has experienced significant fluctuations in homeownership rates and housing prices over the past decade, with a general trend towards increased homeownership and rising average home values.
The homeownership rate in zip code 59827 has shown a notable upward trend, increasing from 72% in 2015 to 89% in 2022. This substantial rise in homeownership coincides with a dramatic increase in average home prices. In 2013, the average home price was $207,561, which more than doubled to $542,695 by 2022. This represents a 161% increase in average home values over a nine-year period.
The relationship between federal interest rates and homeownership rates in this area appears to follow the general expectation that lower interest rates encourage homeownership. For instance, as interest rates remained low between 2013 and 2016 (ranging from 0.11% to 0.40%), homeownership rates increased from 85% to 76%. However, even as interest rates began to rise from 2017 onwards, homeownership in this zip code continued to climb, reaching 89% by 2022, suggesting other local factors may be influencing this trend.
Renter percentages in zip code 59827 have inversely mirrored the homeownership trend, decreasing from 28% in 2015 to 10% in 2022. Interestingly, average rent prices have also declined during this period. The average rent peaked at $2,250 in 2013 and 2014, then dropped significantly to $974 in 2015. By 2022, the average rent had further decreased to $654, representing a 71% decline from its peak. This downward trend in both renter percentages and average rent prices suggests a shift in the local housing market dynamics, possibly influenced by the area's decreasing population, which fell from 328 in 2010 to 282 in 2022.
In 2023 and 2024, the housing market in zip code 59827 showed signs of stabilization. The average home price in 2023 was $507,470, a slight decrease from the 2022 peak. However, in 2024, prices have begun to rise again, reaching $511,629. This occurs against the backdrop of significantly higher federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, the highest levels seen since 2007.
Looking ahead, predictive models suggest that average home prices in zip code 59827 may continue to rise moderately over the next five years, albeit at a slower pace than the dramatic increases seen in the previous decade. Average rent prices are expected to stabilize and potentially see modest increases, reversing the downward trend observed in recent years.
In summary, zip code 59827 has experienced a significant shift towards homeownership, accompanied by substantial increases in average home prices. The inverse relationship between homeownership rates and renter percentages, coupled with declining average rent prices, indicates a transforming local housing market. The recent stabilization of home prices and high interest rates suggest a new phase in the area's real estate dynamics, with moderate growth anticipated in both home values and rental rates in the coming years.
