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Forsyth, Montana: Rising Home Values and Shifting Ownership in a Small City
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
Forsyth, Montana, a small urban center with a population of 1,909 as of 2022, has experienced significant changes in its housing market dynamics over the past decade. The city has seen a notable decline in homeownership rates coupled with a substantial increase in average home prices, reflecting broader shifts in the local real estate landscape.
From 2013 to 2022, Forsyth witnessed a general decline in homeownership rates. In 2013, 71% of residents owned their homes, but this figure dropped to 61% by 2022. Concurrent with this downward trend in homeownership, the city experienced a significant surge in average home prices. Between 2016 and 2022, average home prices rose from $135,192 to $216,654, marking a substantial 60.3% increase over six years.
The relationship between federal interest rates and homeownership rates in Forsyth shows some correlation. As interest rates remained low from 2013 to 2020, ranging from 0.09% to 0.38%, homeownership rates initially held steady but began to decline in later years. The most significant drop in homeownership occurred between 2020 and 2021, falling from 65% to 60%, despite interest rates being at a very low 0.08% in 2021. This suggests that factors beyond interest rates, such as rising home prices, may have played a crucial role in homeownership trends.
Renter percentages in Forsyth have inversely mirrored the homeownership trends, increasing from 29% in 2013 to 39% in 2022. Average rent prices have fluctuated over this period, with notable variations. In 2013, the average rent was $573, which peaked at $676 in 2017 before declining to $504 in 2022. Despite the overall increase in the renter population, the average rent prices have not shown a consistent upward trend, possibly influenced by local economic factors and housing supply dynamics.
In 2023 and 2024, Forsyth's housing market continued to evolve. Average home prices reached $224,989 in 2023 and further increased to $229,707 in 2024, indicating ongoing appreciation in the real estate market. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying affordability and market dynamics.
Looking ahead, predictive models suggest a continued upward trajectory for average home prices in Forsyth over the next five years. Based on historical trends and current market conditions, average home prices could potentially reach around $260,000 to $280,000 by 2029. Average rent prices, which have shown more volatility, are projected to stabilize and potentially increase moderately, possibly reaching $700 to $750 per month in the same timeframe.
In summary, Forsyth has experienced a notable decline in homeownership rates coupled with a significant increase in average home prices over the past decade. The rental market has grown, although average rent prices have fluctuated. Recent years have seen continued home price appreciation alongside rising interest rates, suggesting a complex and evolving housing market landscape in this Montana city.
