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Average Home Values Soar in Zip Code 59047: Pray, Montana's Rural Housing Market Transformation
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 59047, located in Pray, Montana, showcases an intriguing landscape of homeownership and housing trends. This rural area has experienced significant changes in its real estate market over the past decade, with notable shifts in ownership percentages and housing prices.
The ownership percentage in zip code 59047 has seen a slight decline from 75% in 2013 to 71% in 2022. During this same period, average home prices have shown a remarkable upward trajectory. In 2013, the average home price was $207,502, which steadily increased to $550,261 by 2022, representing a substantial 165% growth over nine years. This inverse relationship between homeownership rates and housing prices suggests that rising property values may have made homeownership less attainable for some residents.
Federal interest rates have played a crucial role in shaping homeownership trends in the area. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%, which coincided with relatively stable homeownership rates around 74-75%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), we observed a gradual decline in homeownership percentages to 70%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in zip code 59047 have inversely mirrored the homeownership trend, increasing from 25% in 2013 to 28% in 2022. Interestingly, average rent prices have shown some fluctuation over this period. Starting at $887 in 2013, rent prices peaked at $961 in 2017 before declining to $865 in 2022. This trend does not directly correlate with the increasing renter population, which grew from 3,092 in 2013 to 3,947 in 2022, suggesting that other factors, such as local economic conditions or housing supply, may be influencing rent prices.
Looking at the most recent data, the average home price in zip code 59047 slightly decreased from $550,261 in 2022 to $528,867 in 2023, showing a minor correction in the market. However, prices have stabilized in 2024 at $529,893, indicating a potential leveling off of the rapid growth seen in previous years. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could impact future homeownership trends in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 59047 may continue to experience moderate growth, potentially reaching around $600,000 by 2029. However, this growth rate is expected to be slower compared to the dramatic increases seen in the early 2020s. Average rent prices are projected to show a gradual upward trend, potentially reaching $950-$1,000 per month by 2029, assuming economic conditions remain stable and population growth continues at its current pace.
In summary, zip code 59047 has demonstrated a dynamic real estate market characterized by substantial increases in average home prices, a slight decline in homeownership rates, and fluctuating rent prices. The interplay between federal interest rates, population growth, and housing affordability has shaped these trends. As the area moves forward, it will be crucial to monitor how these factors continue to influence the local housing market and community composition.
