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Fairview, Montana: Home Values and Ownership Trends in a Small Community
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
Fairview, a small town in Montana, has experienced notable shifts in its housing market over the past decade. This quaint community, spanning just 0.8 square miles, has seen fluctuations in homeownership rates and housing prices that reflect broader economic trends and local dynamics.
From 2013 to 2022, Fairview witnessed a significant increase in homeownership rates. The percentage of owner-occupied homes rose from 69% in 2013 to 75% in 2022, peaking at 79% in 2021. This upward trend in homeownership coincided with a substantial rise in average home prices. In 2019, the average home price in Fairview was $231,865, which climbed to $341,134 by 2022, representing a remarkable 47% increase over just three years.
The relationship between federal interest rates and homeownership rates in Fairview follows a generally expected pattern. As interest rates remained low from 2013 to 2021, ranging from 0.08% to 1.83%, homeownership in Fairview steadily increased. This aligns with the principle that lower interest rates typically encourage homeownership by making mortgages more affordable. The peak in homeownership at 79% in 2021 coincided with a historically low federal interest rate of 0.08%.
Conversely, the rental market in Fairview has shown an inverse relationship to homeownership trends. The percentage of renter-occupied homes decreased from 31% in 2013 to 25% in 2022. Despite this decline in the renter population, average rent prices have risen substantially. In 2013, the average rent was $332, which increased to $889 by 2022, representing a 168% increase. This significant rise in rent prices, despite a decreasing renter population, suggests a tightening rental market, possibly due to limited rental inventory or increased demand for higher-quality rental properties.
Looking at the most recent data, 2023 saw a slight decrease in average home prices to $304,092, followed by a further dip to $294,090 in 2024. This cooling in the housing market coincides with a sharp increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates likely contributed to the moderation in home prices by reducing affordability and cooling demand.
Applying predictive models to forecast the next five years, we anticipate a potential stabilization or modest increase in average home prices in Fairview. The recent cooling trend may continue in the short term due to higher interest rates, but long-term demand for housing in this small town could support gradual price appreciation. For rent prices, the forecast suggests a continued upward trend, albeit at a potentially slower pace than seen in recent years, as the market adjusts to changing economic conditions and housing preferences.
In summary, Fairview's housing market has demonstrated resilience and growth over the past decade. The town has seen a strong trend towards homeownership, significant appreciation in both home values and rent prices, and a recent moderation in the housing market influenced by rising interest rates. These trends reflect the dynamic nature of Fairview's real estate landscape and suggest a market that continues to evolve in response to both local and national economic factors.
