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Average Home Values and Ownership in Zip Code 59844: A Decade of Change in Rural 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 59844, located in Heron, Montana, is a rural area spanning 95.27 square miles. This region has experienced fluctuating homeownership rates and significant changes in average home and rent prices over the past decade. The area has maintained a relatively high percentage of owner-occupied housing, though this has slightly decreased in recent years, while average home prices have shown a substantial upward trend.
The percentage of owner-occupied housing in zip code 59844 has seen a gradual decline from 2013 to 2022. In 2013, the homeownership rate stood at 85%, but by 2022, it had decreased to 76%. This 9% drop coincided with a significant increase in average home prices. In 2013, the average home price was $226,132, which more than doubled to $563,387 by 2022. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents.
Federal interest rates have played a role in homeownership trends in the area. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership rates remained stable at around 85-86%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), we observed a corresponding decline in homeownership rates, dropping to 79% by 2019. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The percentage of renter-occupied housing in zip code 59844 has increased from 15% in 2013 to 24% in 2022. This rise in renters corresponds with fluctuations in average rent prices. In 2013, the average rent was $781, which peaked at $1,333 in 2016 before declining to $820 in 2022. Despite the overall increase in renters, the average rent prices have not shown a consistent upward trend, suggesting that other factors, such as local economic conditions or housing supply, may be influencing rental markets in this area.
In 2023, the average home price in zip code 59844 experienced a slight decrease to $549,176 from the previous year's $563,387. This minor correction comes after years of substantial price growth. The federal interest rate in 2023 was 5.02%, significantly higher than in previous years. Moving into 2024, we see a slight uptick in average home prices to $551,372, while the federal interest rate has further increased to 5.33%. These high interest rates may continue to impact homeownership trends in the area.
Looking ahead, based on historical trends and current market conditions, we can project potential scenarios for the next five years. Average home prices in zip code 59844 may continue to appreciate, albeit at a slower rate than seen in recent years, potentially reaching around $600,000 by 2029. Rent prices could see moderate increases, possibly reaching an average of $900-$950 per month in the same timeframe. However, these projections are subject to various economic factors and local market conditions.
In summary, zip code 59844 has experienced a gradual shift from high homeownership rates to an increasing renter population, coinciding with substantial growth in average home prices. The interplay between federal interest rates, home prices, and homeownership rates highlights the complex dynamics of the local housing market. As the area continues to evolve, these trends will likely shape the future of housing in this Montana community.
