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Average Home Values and Ownership in Zip Code 59873: A Resilient Rural Housing Market in Belknap, 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 59873, located in Belknap, Montana, presents an interesting case study in rural housing dynamics. This area 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 ownership percentage in this zip code has shown a notable increase from 73% in 2013 to 81% in 2022, indicating a strong preference for homeownership among residents. This trend has coincided with a substantial rise in average home prices, which have more than doubled from $162,337 in 2013 to $410,114 in 2022. The relationship between these two factors suggests that despite rising prices, the desire for homeownership has remained strong in this community.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 59873. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%, which likely contributed to the initial increase in homeownership from 73% to 71% during this time. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, the homeownership rate continued to climb, reaching its peak of 81% in 2022. This suggests that other local factors, such as job market stability or lifestyle preferences, may have outweighed the impact of rising interest rates on homeownership decisions in this area.
Renter percentages in zip code 59873 have inversely mirrored the homeownership trend, decreasing from 27% in 2013 to 19% in 2022. Interestingly, average rent prices have not shown a consistent correlation with this trend. Rent prices fluctuated considerably, peaking at $809 in 2016 when the renter percentage was 29%, then dropping to $640 in 2022 despite the lower renter percentage of 19%. This suggests that local rental market dynamics may be influenced by factors beyond simple supply and demand, such as housing quality or economic conditions affecting the renter population.
Looking at the most recent data, average home prices in zip code 59873 continued to rise, reaching $411,607 in 2023 and $419,326 in 2024. This represents a slower rate of increase compared to previous years, potentially influenced by the significant jump in federal interest rates to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be tempering home price growth and could impact future homeownership rates in the area.
Applying predictive models to forecast 5-year trends, we anticipate average home prices in zip code 59873 to continue their upward trajectory, albeit at a more moderate pace. Projections suggest prices could reach approximately $450,000 to $475,000 by 2029. Average rent prices are expected to stabilize and potentially see modest increases, potentially reaching $675 to $700 per month in the same timeframe.
In summary, zip code 59873 has demonstrated a strong trend towards homeownership, with rates increasing significantly despite rising home prices. The area has shown resilience in maintaining high homeownership levels even as interest rates have increased. The rental market has shown more volatility, with decreasing renter percentages and fluctuating rent prices. As the community moves forward, it will be crucial to monitor how these trends evolve, particularly in light of recent interest rate hikes and their potential impact on the housing market.
