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Average Home Values and Ownership in Zip Code 59927: A Micro-Community's Real Estate Trends
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 59927, located in Olney, Montana, is a small rural area with a population that has fluctuated between 7 and 14 residents over the past decade. This sparsely populated region has seen interesting shifts in homeownership rates and housing prices, offering a unique perspective on real estate trends in remote areas.
The homeownership rate in zip code 59927 has shown considerable volatility over the years. In 2013, the area boasted 100% owner-occupied homes. This rate fluctuated between 50% and 100% in subsequent years, with notable shifts occurring in 2014, 2015, and 2017 when it dropped to 50%. By 2022, the ownership rate returned to 100%, indicating a strong preference for homeownership in this small community. Interestingly, the average home prices have shown a consistent upward trend since data became available in 2016. The average home price rose from $261,937 in 2016 to $612,118 in 2022, representing a substantial 133.7% increase over six years.
Federal interest rates have played a role in homeownership trends. From 2010 to 2015, interest rates remained exceptionally low, hovering around 0.1% to 0.18%. During this period, homeownership rates in zip code 59927 were generally high, often at 100%. As interest rates began to rise gradually from 2016 onwards, reaching 1.83% in 2018 and 2.16% in 2019, homeownership rates remained stable at 50% to 100%. This suggests that in this small community, factors beyond interest rates, such as local economic conditions and personal preferences, may have a more significant impact on homeownership decisions.
Renter percentages and average rent prices in zip code 59927 have shown an inverse relationship to homeownership rates. When homeownership was at 100%, there were naturally no renters. In years with 50% homeownership, such as 2014, 2015, and 2017, we can infer a 50% renter occupancy. Average rent prices fluctuated considerably, peaking at $677 in 2016 before declining to $438 in 2019 and then rising again to $491 in 2022. These fluctuations may be attributed to the extremely small population and limited housing stock, where even minor changes can have significant impacts on average rents.
In 2023 and 2024, average home prices in zip code 59927 experienced a slight decrease followed by a modest increase. The average home price in 2023 was $561,437, representing an 8.3% decrease from 2022. However, in 2024, the price rose slightly to $566,830, a 1% increase from 2023. Concurrently, federal interest rates increased significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may influence future homeownership trends in the area.
Looking ahead, predictive models suggest that average home prices in zip code 59927 may continue to rise moderately over the next five years, potentially reaching around $650,000 by 2029. Average rent prices are expected to follow a similar trend, potentially increasing to approximately $600 per month in the same timeframe. However, these projections should be considered within the context of the area's small population and limited housing stock, which can lead to significant fluctuations based on individual property transactions or changes.
In summary, zip code 59927 presents a unique case study of real estate trends in a micro-community. The area has experienced substantial growth in average home prices, volatile homeownership rates, and fluctuating rent prices. Despite rising interest rates, the community has maintained a strong preference for homeownership, with periods of 100% owner-occupied homes. The interplay between these factors in such a small population highlights the distinctive nature of real estate dynamics in rural, sparsely populated areas.
