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Farviews & Pattee Canyon: Rising Home Values and Shifting Ownership in Missoula's Scenic Neighborhood
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Farviews & Pattee Canyon, a scenic neighborhood in Missoula, Montana, has experienced significant changes in homeownership and housing prices over the past decade. From 2013 to 2022, the area witnessed a decline in homeownership rates alongside a substantial increase in average home prices and rents.
The homeownership rate in Farviews & Pattee Canyon decreased from 75% in 2013 to 67% in 2022, coinciding with a dramatic rise in average home prices. The average home price surged from $294,310 in 2013 to $638,116 in 2022, representing a remarkable 116.8% increase. This inverse relationship suggests that the rising home prices may have made homeownership less accessible for some residents.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.4%), homeownership in the neighborhood decreased from 75% to 64%. This counterintuitive trend might be attributed to rapidly rising home prices outpacing the benefits of low interest rates. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership stabilized around 63-66%, possibly indicating a balance between interest rates and home prices.
The percentage of renters in Farviews & Pattee Canyon increased from 25% in 2013 to 33% in 2022, correlating with rising average rent prices. Average rent increased from $907 in 2013 to $987 in 2022, an 8.8% rise. However, this increase was not linear, with fluctuations observed throughout the years. Notably, there was a sharp increase in average rent to $1,152 in 2021, followed by a decrease to $987 in 2022. These changes in rent prices and renter percentages may be influenced by factors such as housing supply, local economic conditions, and population growth, with the neighborhood's population increasing from 3,476 in 2013 to 3,607 in 2022.
In 2023, the average home price in Farviews & Pattee Canyon reached $647,276, with federal interest rates at 5.02%. Moving into 2024, the average home price further increased to $668,853, while interest rates rose slightly to 5.33%. This continued upward trajectory in both home prices and interest rates suggests a robust housing market in the neighborhood, despite potential challenges for prospective homebuyers due to higher financing costs.
Looking ahead, predictive models suggest that average home prices in Farviews & Pattee Canyon may continue to rise over the next five years, potentially reaching around $800,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,200 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, Farviews & Pattee Canyon has experienced a gradual shift towards more renters over the past decade, alongside substantial increases in average home prices. The interplay between federal interest rates, homeownership rates, and housing costs has created a dynamic market environment. With continued growth in both home prices and rents projected, the neighborhood is likely to remain an attractive, albeit increasingly expensive, area for both homeowners and renters in the coming years.
