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Average Home Values and Ownership Trends in Pablo, Zip Code 59855: A Decade of Growth Despite Rising Interest Rates
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
Pablo, located in zip code 59855 in Montana, is a small community that has experienced notable fluctuations in homeownership rates and housing prices over the past decade. This analysis examines the trends in ownership versus renting, and their relationship to average housing and rent prices in the area.
In Pablo, homeownership rates have shown a significant increase in recent years. In 2013, the ownership rate was 52%, which remained relatively stable until 2019. However, from 2020 to 2022, there was a substantial rise in homeownership, reaching 70% in 2022. This trend coincided with changes in average home prices, which saw a dramatic increase during the same period.
Average home prices in Pablo have experienced substantial growth since 2014. In 2014, the average home price was $112,760. By 2022, this figure had more than doubled to $260,277, representing a 131% increase over eight years. The most significant jump occurred between 2020 and 2021, with average home prices rising from $167,601 to $212,159, a 26.6% increase in just one year.
The relationship between federal interest rates and homeownership rates in Pablo shows an interesting pattern. Despite historically low interest rates from 2013 to 2021 (ranging from 0.08% to 0.40%), homeownership rates remained relatively stable until 2020. However, as interest rates began to rise in 2022 to 1.68%, homeownership in Pablo also increased significantly, reaching 70%. This suggests that local factors may have played a more significant role in homeownership trends than national interest rates in this particular area.
Renter percentages in Pablo have shown an inverse relationship to homeownership rates. In 2013, the renter-occupied rate was 43%, which increased slightly to 52% by 2018. However, from 2019 to 2022, there was a sharp decline in renter-occupied units, dropping to 30% in 2022. Average rent prices have fluctuated over this period, with a general upward trend. In 2013, the average rent was $573, which increased to $723 by 2017. However, rent prices then experienced some volatility, dropping to $610 in 2020 before rising again to $641 in 2021 and then back to $610 in 2022.
Looking at the most recent data, the average home price in Pablo for 2023 was $264,699, showing a continued upward trend from previous years. In 2024, the average home price further increased to $273,798. These figures indicate a steady appreciation in property values. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we can anticipate continued growth in average home prices in Pablo, albeit at a potentially slower rate due to higher interest rates. Average rent prices may also continue to rise moderately, influenced by the overall housing market trends and local economic factors.
In summary, Pablo has experienced a significant shift towards homeownership in recent years, coupled with substantial increases in average home prices. The inverse relationship between homeownership and renting percentages suggests a changing dynamic in the local housing market. Despite rising interest rates, the area has seen continued growth in property values, indicating strong local demand for housing. These trends paint a picture of a small community undergoing notable changes in its residential landscape.
