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Average Home Values and Ownership in Zip Code 59922: A Decade of Growth Near Flathead Lake
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Lakeside, located in zip code 59922 in Montana, has experienced significant changes in homeownership rates and housing prices over the past decade. This area has seen a general trend of increasing homeownership, rising average home prices, and varying average rent prices, reflecting the dynamic nature of its real estate market.
The homeownership rate in Lakeside has shown a notable upward trend, increasing from 72% in 2013 to 80% in 2022. This rise in homeownership coincided with a substantial increase in average home prices, which grew from $342,818 in 2013 to $822,420 in 2022, representing a 140% increase over this period. The most significant jump occurred between 2020 and 2022, with average home prices surging from $473,069 to $822,420, a 74% increase in just two years.
Federal interest rates have played a crucial role in shaping homeownership trends in Lakeside. The period of historically low interest rates from 2013 to 2021, where rates remained below 1% for several years, likely contributed to the increasing homeownership rates. For instance, as interest rates dropped from 1.83% in 2018 to 0.08% in 2021, homeownership rose from 77% to 84%, suggesting that lower borrowing costs made homeownership more accessible.
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Conversely, the rental market in Lakeside has experienced a decline in the percentage of renters, dropping from 28% in 2013 to 20% in 2022. Despite this decrease, average rent prices have shown volatility. They increased from $1,052 in 2013 to $1,567 in 2021, before dropping to $962 in 2022. This fluctuation in rent prices, coupled with the decreasing renter population, suggests a complex interplay between housing supply, demand, and overall population changes in the area.
In 2023 and 2024, the real estate market in Lakeside has shown signs of stabilization. Average home prices slightly decreased to $775,422 in 2023 but are projected to rise to $804,826 in 2024. This modest increase comes despite significantly higher federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability and demand in the housing market.
Looking ahead, predictive models suggest that average home prices in Lakeside may continue to rise moderately over the next five years, albeit at a slower pace than the rapid growth seen in recent years. The high interest rate environment is likely to temper price increases. Average rent prices are expected to stabilize and potentially increase slightly, reflecting the area's desirability and the balance between housing supply and demand.
In summary, Lakeside has experienced a significant shift towards homeownership, accompanied by substantial increases in average home prices. The rental market has contracted in terms of occupancy but has seen volatile rent prices. The interplay between federal interest rates, local economic factors, and housing market dynamics will continue to shape the real estate landscape in this Montana community in the coming years.
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