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Cooper Park: Rising Home Values and Shifting Ownership Patterns in Bozeman's Resilient 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
Cooper Park, a vibrant neighborhood in Bozeman, Montana, has experienced significant changes in homeownership rates and substantial increases in both average home prices and rent over the past decade. The area has generally seen a trend towards increased renter occupancy, with recent shifts back towards homeownership, while property values have consistently risen.
The relationship between homeownership rates and average home prices in Cooper Park reveals an interesting dynamic. In 2013, the homeownership rate was 45%, with an average home price of $307,356. As average home prices steadily increased, reaching $531,167 in 2019, the homeownership rate declined to 39%. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents. However, a notable shift occurred in 2022, when the homeownership rate increased to 50% despite the average home price reaching $803,012, indicating a possible resurgence in the ability or desire to purchase homes in the area.
Federal interest rates have played a role in homeownership trends in Cooper Park. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 0.38%. During this time, homeownership rates fluctuated but generally remained below 46%. Interestingly, as interest rates began to rise more significantly in 2022 to 1.68%, homeownership in the neighborhood also increased to 50%, contrary to the typical expectation that higher interest rates would deter homebuying.
Renter percentages and average rent prices in Cooper Park have shown a generally positive correlation. In 2013, 55% of residents were renters, with an average rent of $743. By 2019, the renter percentage had increased to 61%, accompanied by a rise in average rent to $917. This trend continued into 2021, with 55% of residents renting and average rent reaching $1,187. The increase in both renter percentage and average rent prices could be attributed to the growing population, which rose from 1,117 in 2013 to 1,431 in 2021, potentially increasing demand for rental properties.
Looking at the most recent data, the average home price in Cooper Park slightly decreased from $803,012 in 2022 to $796,691 in 2023, before rebounding to $828,006 in 2024. This recent uptick in home prices occurs alongside a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homebuying activity in the neighborhood.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Cooper Park will continue to rise, potentially reaching around $950,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,600 per month within the same timeframe. These projections are based on the historical growth patterns observed in the neighborhood.
In summary, Cooper Park has demonstrated resilience in its housing market, with consistently rising property values despite fluctuations in homeownership rates. The recent increase in homeownership, even in the face of rising home prices and interest rates, suggests a strong desire for property ownership in the area. The rental market has also shown steady growth, reflecting the neighborhood's increasing population and demand for housing. As Cooper Park continues to evolve, it will likely remain an attractive location for both homeowners and renters, with property values and rental prices expected to maintain their upward trajectory.
