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Average Home Values and Ownership in Zip Code 59932: Lakeside, Montana's Housing Market Near Flathead Lake
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 59932, located in Lakeside, Montana, presents an intriguing case study of housing dynamics in a rural setting. This area has experienced significant fluctuations in homeownership rates and property values over the past decade. The overall trend shows a slight decrease in homeownership, coupled with a substantial increase in average home prices, while average rent prices have remained relatively stable.
The homeownership rate in zip code 59932 has shown a slight downward trend over the years, with some fluctuations. In 2013, the homeownership rate was 79%, which increased to 84% in 2019, marking the highest point in the dataset. However, by 2022, it had decreased to 70%. This decline in homeownership coincides with a dramatic increase in average home prices. In 2013, the average home price was $270,090, which steadily rose to $698,025 by 2022, representing a staggering 158% increase over this period.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 59932. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%. During this time, homeownership rates remained relatively stable, hovering around 77-79%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, we observe a corresponding decline in homeownership rates, dropping to 70% by 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The renter population in zip code 59932 has shown an inverse relationship to homeownership rates. In 2013, the renter-occupied percentage was 20%, which remained relatively stable until 2019 when it dropped to 15%. However, by 2022, it had increased to 30%, coinciding with the decrease in homeownership. Interestingly, average rent prices have not shown a consistent upward trend despite the increase in the renter population. The average rent was $963 in 2013, peaked at $1,099 in 2016, and then fluctuated, settling at $854 in 2022. This suggests that other factors, such as local economic conditions or housing supply, may be influencing rent prices more than demand alone.
Looking at the most recent data, we see that in 2023, the average home price in zip code 59932 slightly decreased to $673,084, following the peak in 2022. However, in 2024, the average home price has rebounded to $700,351, surpassing the 2022 peak. This recent uptick occurs despite the federal interest rate reaching 5.33% in 2024, the highest in over a decade. This suggests a strong underlying demand for housing in the area, potentially driven by factors such as local economic growth or the area's desirability.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 59932 will continue to rise, albeit at a more moderate pace. The rapid appreciation seen from 2020 to 2022 is likely unsustainable, but the area's attractiveness and limited housing supply could support continued growth. Average rent prices are expected to stabilize and potentially increase slightly, aligning more closely with the rising home values and the growing renter population.
In summary, zip code 59932 has experienced a significant shift in its housing market over the past decade. The most notable trends include a substantial increase in average home prices, a recent decline in homeownership rates, and a growing renter population. Despite rising interest rates, the housing market remains robust, with home prices continuing to climb. These trends suggest a dynamic and evolving housing landscape in this Montana community, likely influenced by a combination of local economic factors, demographic shifts, and broader market forces.
