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Culbertson, Montana: Rising Home Values and Ownership Rates in a Small Town
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
Culbertson, a small town in Montana, has experienced notable fluctuations in its housing market over the past decade. The city has seen shifts in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local dynamics.
From 2013 to 2022, Culbertson's homeownership rate saw an overall increase, rising from 71% to 74%. This trend coincided with a significant rise in average home prices. In 2016, the average home price in Culbertson was $151,663, which steadily increased to $254,845 by 2022, representing a substantial 68% growth over six years.
The relationship between federal interest rates and homeownership rates in Culbertson appears to follow general economic principles. As interest rates remained low from 2013 to 2020, ranging from 0.09% to 0.38%, homeownership rates in Culbertson increased from 71% to 80%. This aligns with the concept that lower interest rates tend to encourage homeownership by making mortgages more affordable.
Renter percentages in Culbertson showed an inverse relationship to homeownership rates, decreasing from 29% in 2013 to 26% in 2022. Despite this decline in the renter population, average rent prices increased steadily. In 2013, the average rent was $668, which rose to $829 by 2022, marking a 24% increase over nine years. This upward trend in rent prices occurred even as the town's population fluctuated, suggesting other factors such as housing supply and local economic conditions may have influenced rental costs.
In 2023 and 2024, Culbertson's housing market continued to evolve. The average home price reached $267,671 in 2023 and further increased to $271,333 in 2024, indicating a continued upward trajectory in property values. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions and mortgage affordability.
Looking ahead, predictive models suggest that Culbertson's housing market may continue to see growth in both home prices and rent costs over the next five years. Average home prices are projected to potentially reach around $300,000 by 2029, while average rent prices could approach $950 per month. These projections assume a continuation of current trends and stable economic conditions.
In summary, Culbertson has experienced a notable increase in homeownership rates and significant growth in average home prices over the past decade. The rental market, while shrinking in terms of percentage, has seen steady increases in average rent prices. The recent rise in interest rates and continued growth in home prices suggest a dynamic housing market that may present both opportunities and challenges for residents and potential homebuyers in the coming years.
