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Boulder, Montana: Rising Home Values Amidst Fluctuating Ownership Rates
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
Boulder, Montana, a small town in the Treasure State, has experienced significant changes in its housing market over the past decade. The community has seen notable shifts in homeownership rates, average home prices, and average rent prices. Generally, there has been a trend of decreasing homeownership, rising average home prices, and fluctuating average rent prices.
The relationship between homeownership percentages and average home prices in Boulder reveals an interesting dynamic. In 2013, the homeownership rate stood at 83%, with average home prices at $135,036. As average home prices steadily increased, reaching $195,654 by 2019, the homeownership rate declined to 62%. This trend suggests that rising home prices may have made homeownership less attainable for some residents. However, the trend reversed slightly in recent years, with homeownership increasing to 75% in 2022 despite average home prices reaching $314,044.
Federal interest rates have played a role in shaping homeownership trends in Boulder. The period from 2013 to 2015 saw relatively low interest rates (0.11% to 0.13%), coinciding with high homeownership rates of 83% to 74%. As interest rates began to rise from 2016 onwards, reaching 1.83% in 2018, homeownership rates continued to decline, hitting a low of 62% in 2019. However, the sharp drop in interest rates in 2020 and 2021 (0.38% and 0.08% respectively) may have contributed to the rebound in homeownership rates, which increased to 75% by 2022.
Renter percentages and average rent prices in Boulder have shown some correlation. In 2013, the renter-occupied rate was 17%, with average rent at $1,169. As the renter percentage increased to 38% by 2019, average rent prices also rose, peaking at $1,525 in 2018. However, there was a significant drop in average rent prices in subsequent years, falling to $720 in 2022, while the renter percentage decreased to 25%. This trend might be attributed to various factors, including changes in housing supply and demand dynamics within the city.
In 2023 and 2024, Boulder's housing market continued to evolve. The average home price in 2023 was $324,425, showing a slight increase from the previous year. In 2024, the average home price further rose to $329,962. Interestingly, federal interest rates also increased significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and affordability in the city.
Looking ahead, predictive models suggest that average home prices in Boulder may continue to rise moderately over the next five years, potentially reaching around $360,000 by 2029. Average rent prices, which have been volatile in recent years, are projected to stabilize and potentially increase slightly, possibly reaching around $800-$850 per month by 2029. These predictions are based on current trends and historical data patterns.
In summary, Boulder has experienced a complex interplay between homeownership rates, average home prices, and average rent prices. The city has seen a general trend of increasing home values, with a recent rebound in homeownership rates despite rising prices. Rent prices have shown significant fluctuations, with a notable decrease in recent years. The relationship between these factors and broader economic indicators like federal interest rates highlights the multifaceted nature of the local housing market. As Boulder moves forward, these trends will likely continue to shape its housing landscape, influencing affordability and accessibility for both homeowners and renters.
