The rental market in zip code 59405 has shown an inverse relationship to homeownership trends. The percentage of renters decreased from 46% in 2014 to 41% in 2022. Despite this decline, average rent prices have generally increased, rising from $770 in 2014 to $843 in 2022, a 9.5% increase. This trend suggests that while fewer residents are renting, those who do are facing higher costs. The population growth from 29,724 in 2014 to 31,978 in 2022 may have contributed to the upward pressure on rent prices despite the decreasing percentage of renters.

In 2023 and 2024, the housing market in zip code 59405 continued its upward trajectory. Average home prices reached $288,205 in 2023 and further increased to $304,029 in 2024, representing a 12.8% rise over two years. This growth occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for new homebuyers.

Looking ahead, predictive models suggest that both average home prices and rent prices in zip code 59405 are likely to continue their upward trend over the next five years. Average home prices could potentially reach around $350,000 by 2029, assuming a similar growth rate to recent years. Average rent prices may increase to approximately $950 per month in the same timeframe, based on historical trends.

In summary, zip code 59405 has experienced a steady increase in homeownership rates and average home prices over the past decade, with a corresponding decrease in the percentage of renters. Despite rising costs, the area has seen consistent population growth and a robust housing market. The recent sharp increase in interest rates may pose challenges for future homebuyers, but the market has shown resilience thus far. As the area continues to develop, it will be crucial to monitor how these trends impact housing affordability and community dynamics in Great Falls, Montana.