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Bozeman Creek: Soaring Home Values and Shifting Ownership in Montana's Growing Neighborhood
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
Bozeman Creek, a picturesque neighborhood in Bozeman, Montana, has experienced significant changes in homeownership rates and housing prices over the past decade. This area, known for its proximity to outdoor recreational activities, reflects the dynamic nature of Bozeman's real estate market. From 2013 to 2022, the neighborhood saw a decline in homeownership rates, dropping from 56% to 50%. During this same period, average home prices in Bozeman Creek increased substantially, rising from $233,116 in 2013 to $652,582 in 2022, representing a 180% increase over nine years.
The relationship between federal interest rates and homeownership rates in Bozeman Creek shows some correlation. When interest rates remained low from 2013 to 2016, around 0.1%, homeownership rates were stable at 54-56%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined to 50%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The percentage of renters in Bozeman Creek increased from 44% in 2013 to 50% in 2022, coinciding with a steady rise in average rent prices. The average rent increased from $914 per month in 2013 to $1,218 in 2022, a 33% increase over nine years. This growing renter population and rising rent prices suggest a strong demand for rental properties in the area, possibly driven by the increasing cost of homeownership and the neighborhood's attractiveness to new residents.
Recent data shows that the average home price in Bozeman Creek reached $655,061 in 2023 and further increased to $677,758 in 2024. This continued upward trend in home prices occurs despite the federal interest rate rising to 5.02% in 2023 and 5.33% in 2024, indicating a robust demand for housing in the area that persists even in a higher interest rate environment.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in Bozeman Creek will continue to rise, albeit at a potentially slower rate due to the higher interest rate environment. Average rent prices are also expected to increase, driven by the growing renter population and the overall desirability of the neighborhood.
In summary, Bozeman Creek has experienced a shift towards a more balanced mix of homeowners and renters over the past decade, with a slight preference for renting in recent years. The substantial increase in average home prices, coupled with rising rent costs, reflects the neighborhood's growing popularity and the overall strength of Bozeman's real estate market. These trends suggest that Bozeman Creek will likely remain a sought-after area for both homeowners and renters in the coming years, with continued upward pressure on both home prices and rents.
