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Fairfield, Montana: Small Town Sees Big Changes in Home Values and Ownership
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
Fairfield, a small town in Montana, has experienced significant demographic and housing market changes over the past decade. This analysis explores the trends in homeownership rates, average home prices, and average rent prices in Fairfield, revealing interesting patterns in the local real estate market.
From 2013 to 2022, Fairfield saw fluctuations in homeownership rates, with a general trend towards increased owner occupancy. In 2013, the homeownership rate stood at 73%, dropping to a low of 66% in 2016 and 2018, before rising to 76% in 2022. This upward trend in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price in Fairfield was $153,134, which steadily climbed to $343,954 by 2022, representing a remarkable 124% increase over this period.
The relationship between federal interest rates and homeownership rates in Fairfield shows some interesting patterns. Despite historically low interest rates from 2013 to 2021 (ranging from 0.08% to 1.83%), homeownership rates fluctuated. However, as interest rates began to rise more significantly in 2022 to 1.68%, homeownership in Fairfield actually increased to 76%, its highest level in the observed period. This suggests that local factors may have played a more significant role in homeownership decisions than national interest rates during this time.
Renter percentages in Fairfield have generally mirrored the inverse of homeownership rates, ranging from a high of 34% in 2016 and 2018 to a low of 24% in 2022. Average rent prices have shown a consistent upward trend, increasing from $602 in 2013 to $913 in 2022, a 52% rise. This increase in rent prices occurred alongside population growth, with Fairfield's population rising from 1,057 in 2013 to 1,372 in 2022, potentially contributing to increased rental demand and prices.
In 2023 and 2024, Fairfield's housing market continued to evolve. The average home price in 2023 was $349,053, a slight increase from 2022. In 2024, it further rose to $365,236. These increases occurred despite the federal interest rate climbing to 5.02% in 2023 and 5.33% in 2024, which typically might slow housing market growth.
Looking ahead, predictive models suggest that Fairfield's housing market may continue its upward trajectory, albeit at a potentially slower pace. Average home prices could reach around $400,000 within the next five years if current trends persist. Rent prices may also continue to rise, potentially reaching an average of $1,100 to $1,200 per month in the same timeframe.
In summary, Fairfield has experienced a notable increase in homeownership rates and significant growth in both average home prices and rent prices over the past decade. The town's real estate market has shown resilience, with home prices continuing to rise even in the face of increasing interest rates. These trends, combined with the town's population growth, suggest a robust and dynamic housing market in this small Montana town.
