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Bigfork, Montana: Resilient Homeownership Amidst Rising Property Values
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
Bigfork, located in Montana, is a picturesque community known for its stunning natural beauty and proximity to Flathead Lake. This charming town has experienced notable growth and changes in its real estate market over the past decade. The city has maintained a consistently high rate of homeownership, while average home prices and average rent prices have shown significant fluctuations.
The homeownership rate in Bigfork has remained relatively stable, hovering around 80% from 2013 to 2022. In 2013, the homeownership rate was 77%, which gradually increased to 81% by 2022. This high rate of homeownership indicates a strong preference for property ownership among Bigfork residents. Concurrently, average home prices have shown a dramatic upward trend. In 2010, the average home price was $341,028, which dipped to $290,054 in 2012 before beginning a steady climb. By 2022, the average home price had skyrocketed to $784,952, representing a 130% increase over the 2010 figure.
The relationship between federal interest rates and homeownership rates in Bigfork appears to follow the general trend observed nationally. During periods of lower interest rates, such as from 2010 to 2016 when rates remained below 0.5%, the homeownership rate in Bigfork increased from 77% in 2013 to 80% in 2016. This aligns with the principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The percentage of renters in Bigfork has remained relatively low, fluctuating between 17% and 21% from 2013 to 2022. Average rent prices have shown some volatility over this period. In 2013, the average rent was $965, which increased to $1,083 in 2015 before declining to $941 in 2019. By 2022, the average rent had risen again to $1,014. These fluctuations in rent prices, coupled with the growing population (from 6,472 in 2010 to 7,859 in 2022), suggest a dynamic rental market responding to changing demand and economic conditions.
In 2023 and 2024, Bigfork experienced a slight correction in its housing market. The average home price decreased from $784,952 in 2022 to $755,598 in 2023, before rising again to $780,894 in 2024. This adjustment coincides with a significant increase in federal interest rates, which rose from 1.68% in 2022 to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may have contributed to the temporary slowdown in home price appreciation.
Looking ahead, based on historical trends and current market conditions, we can project that average home prices in Bigfork may continue to rise, albeit at a more moderate pace. Over the next five years, average home prices could potentially reach the $900,000 to $1 million range, assuming continued population growth and sustained demand for housing in this desirable location. Average rent prices are likely to follow a similar upward trajectory, potentially reaching $1,200 to $1,300 per month within the next five years, reflecting the overall increase in property values and living costs in the area.
In summary, Bigfork has maintained a strong homeownership market with steadily increasing property values over the past decade. The community has weathered economic fluctuations while preserving its appeal to both homeowners and renters. The recent moderation in home price growth, coupled with rising interest rates, suggests a maturing real estate market that continues to offer opportunities for both long-term residents and newcomers to this Montana gem.
