Loading Content...
Average Home Values Rise to $200,615 in Montana's 59254 Zip Code: A Rural Homeownership Stronghold
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 59254, located in Plentywood, Montana, presents an interesting case study of homeownership and housing market trends in a rural setting. This area has experienced fluctuations in population and housing dynamics over the past decade, with a general trend towards increased homeownership and rising home prices.
The homeownership rate in zip code 59254 has shown remarkable stability, hovering around 75-79% between 2013 and 2022. This high rate of homeownership coincides with a significant increase in average home prices. In 2016, the average home price was $113,908, which steadily rose to $197,460 by 2022, representing a 73% increase over six years. This upward trend in home prices, coupled with the consistent homeownership rate, suggests a strong local housing market and continued demand for homeownership despite rising costs.
Federal interest rates have played a role in shaping homeownership trends in the area. For instance, the period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.40%. This coincided with a slight increase in homeownership from 75% to 78%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, the homeownership rate remained stable at around 75-79%, indicating resilience in the local housing market.
Renter percentages in zip code 59254 have remained relatively low, ranging from 21% to 25% between 2013 and 2022. Despite this small percentage, average rent prices have shown a notable increase. In 2013, the average rent was $598, which rose to $745 by 2022, representing a 24.6% increase. This rise in rent prices occurred despite fluctuations in the local population, which peaked at 1,832 in 2016 and declined to 1,739 by 2022, suggesting that other factors beyond population growth were influencing rent prices.
In 2023, the average home price in zip code 59254 reached $200,615, continuing the upward trend observed in previous years. However, 2024 saw a slight decline to $188,764, marking the first decrease in average home prices in recent years. This coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may be contributing to the cooling of home prices in the area.
Looking ahead, predictive models suggest that average home prices in zip code 59254 may experience a period of stabilization or slight decline over the next five years, influenced by the current high interest rate environment. However, given the area's history of strong homeownership rates, prices are likely to remain relatively resilient. Average rent prices are projected to continue their upward trajectory, albeit at a more moderate pace, potentially reaching around $800-$850 by 2029.
In summary, zip code 59254 demonstrates a robust homeownership market with steadily increasing home values over the past decade. The area has maintained a high rate of owner-occupied housing despite rising prices and fluctuating population. Rent prices have also shown consistent growth, reflecting a competitive rental market even with a smaller renter population. The recent cooling in home prices, coupled with higher interest rates, may signal a shift in the local housing market dynamics, but the area's strong history of homeownership suggests continued stability in the coming years.
