Baker, Montana: Home Values and Ownership Trends in a Small, Resilient Community
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
DATA SOURCE
Baker, Montana, is a small community with a population that has remained relatively stable over the past decade, hovering around 2,000 residents. The city has experienced fluctuations in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics. From 2013 to 2022, Baker saw notable changes in its housing landscape, with shifts in homeownership rates and increases in both average home prices and average rent prices.
The homeownership rate in Baker has shown some variability over the years. In 2013, the homeownership rate stood at 70%. It reached its peak in 2016 at 77% before declining to 66% in 2018. By 2022, the rate had rebounded to 72%. Interestingly, these changes in homeownership rates seem to correlate with fluctuations in average home prices. From 2016 to 2022, average home prices in Baker increased significantly, rising from $141,663 to $232,121, representing a 63.9% increase over six years.
Federal interest rates appear to have influenced homeownership trends in Baker. During periods of lower interest rates, such as from 2013 to 2016 when rates ranged from 0.11% to 0.40%, homeownership rates were generally higher, peaking at 77% in 2016. As interest rates began to rise more sharply from 2017 onwards, reaching 1.68% in 2022, homeownership rates experienced some volatility, though they remained relatively high at 72% in 2022.
Regarding rental trends, the percentage of renters in Baker has fluctuated inversely with homeownership rates. In 2013, renters made up 30% of the population, and this figure decreased to 23% in 2016 when homeownership peaked. By 2018, the renter population increased to 34%, corresponding with the lowest homeownership rate. In 2022, renters accounted for 28% of the population. Average rent prices have shown a consistent upward trend, rising from $512 in 2013 to $784 in 2022, a 53.1% increase over nine years.
In 2023 and 2024, Baker experienced a shift in its housing market. The average home price in 2023 was $215,698, showing a decrease from the 2022 peak. This trend continued into 2024, with average home prices further declining to $201,412. Notably, federal interest rates rose significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024, which likely contributed to the cooling of the housing market.
Looking ahead, predictive models suggest that average home prices in Baker may continue to experience a slight downward trend in the short term due to the high interest rates, potentially stabilizing around $195,000 by 2029. Average rent prices, however, are projected to continue their upward trajectory, potentially reaching around $900 per month by 2029, driven by ongoing demand for rental properties in the area.
In summary, Baker's housing market has demonstrated resilience and adaptability over the past decade. The interplay between homeownership rates, average home prices, and average rent prices reflects broader economic conditions and local market forces. The recent cooling in home prices, coupled with rising interest rates, suggests a period of market adjustment. Despite these changes, the city's stable population and consistent demand for housing indicate a balanced and evolving real estate landscape in Baker.
