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Average Home Values and Ownership Trends in Zip Code 59762: Montana's Rural Housing Market Dynamics
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 59762, located in Anaconda-Deer Lodge County, Montana, presents an intriguing case study of homeownership and housing market dynamics in a rural setting. This area has experienced fluctuations in its homeownership rates and housing prices over the past decade, with a general trend towards increased homeownership and rising average home values.
The homeownership rate in zip code 59762 has shown a notable increase from 80% in 2013 to 88% in 2022, indicating a strong preference for homeownership in this community. During this same period, average home prices have risen significantly, from $218,787 in 2013 to $507,117 in 2022, representing a 131.8% increase over nine years. This upward trend in both homeownership rates and home prices suggests a robust demand for housing in the area, despite its relatively small population.
Federal interest rates have played a role in shaping homeownership trends in zip code 59762. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%, which coincided with a rise in homeownership from 80% to 86%. As interest rates began to increase more substantially from 2017 onwards, homeownership rates remained relatively stable, fluctuating between 82% and 88%, demonstrating the area's resilience to rising borrowing costs.
The rental market in zip code 59762 has experienced some volatility. The percentage of renters decreased from 19% in 2013 to 12% in 2022. Average rent prices have shown considerable fluctuation, ranging from a low of $376 in 2017 to a high of $953 in 2021, before settling at $450 in 2022. These variations in rent prices and the declining renter population suggest a shift towards homeownership, possibly driven by the area's relatively affordable housing market compared to urban centers.
In 2023 and 2024, the housing market in zip code 59762 continued its upward trajectory. The average home price reached $510,289 in 2023 and further increased to $561,380 in 2024, representing a 10% rise in just one year. This growth occurred despite federal interest rates climbing to 5.02% in 2023 and 5.33% in 2024, indicating strong local demand for housing that outweighed the potential dampening effect of higher borrowing costs.
Looking ahead, predictive models suggest that average home prices in zip code 59762 will continue to rise over the next five years, albeit at a potentially slower pace due to the higher interest rate environment. Average rent prices are expected to stabilize and potentially increase moderately, reflecting the area's limited rental market and the ongoing preference for homeownership.
In summary, zip code 59762 has demonstrated a robust housing market characterized by increasing homeownership rates and rising average home values. The area has shown resilience to fluctuating interest rates and a strong preference for homeownership over renting. As the community continues to evolve, it is likely to maintain its appeal to homeowners, with property values expected to appreciate further in the coming years.
