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Custer, Montana: Home Values Soar as Ownership Rebounds
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Custer, Montana is a small community that has experienced significant fluctuations in population and housing dynamics over the past decade. This analysis examines the trends in homeownership rates, average home prices, and average rent prices in Custer, providing insights into the local real estate market. The homeownership rate in Custer has shown a notable trend, decreasing from 79% in 2013 to a low of 62% in 2019, before rebounding to 78% in 2022. This shift coincides with changes in average home prices, which have seen a substantial increase over the same period. In 2013, the average home price was $169,619, rising steadily to reach $394,137 in 2022, representing a 132% increase over nine years.
The relationship between federal interest rates and homeownership rates in Custer appears to follow expected patterns. As interest rates remained low from 2013 to 2016, hovering around 0.1-0.4%, homeownership rates initially declined. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates in Custer started to recover, suggesting that local factors may have played a more significant role in housing decisions than national interest rates alone.
Renter percentages in Custer have mirrored the inverse of homeownership rates, peaking at 38% in 2019 before declining to 22% in 2022. Average rent prices have shown an overall upward trend, increasing from $508 in 2013 to $796 in 2022, a 57% rise. This increase in rent prices occurred despite fluctuations in the local population, which ranged from a low of 520 in 2015 to a high of 867 in 2019, before settling at 747 in 2022.
In 2023 and 2024, Custer's average home prices continued to rise, reaching $401,595 in 2023 and $422,163 in 2024. This represents a 7% increase from 2022 to 2024. Concurrently, federal interest rates have increased significantly, standing at 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends in the area.
Looking ahead, predictive models suggest that average home prices in Custer may continue to rise over the next five years, potentially reaching around $500,000 by 2029 if current trends persist. Average rent prices are also expected to increase, potentially surpassing $900 per month within the same timeframe. However, these projections are subject to various economic factors and local market conditions.
In summary, Custer has experienced a resurgence in homeownership rates in recent years, despite rapidly increasing home prices. The community has also seen a steady rise in average rent prices, reflecting a dynamic and evolving real estate market. The interplay between population changes, housing prices, and federal interest rates has shaped the local housing landscape, with recent trends suggesting a preference for homeownership among residents.
