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Fort Benton, Montana: Rising Home Values and Ownership in the Oldest Continuously Inhabited Settlement
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
Fort Benton, Montana, known as the "Birthplace of Montana," is a historic city situated along the Missouri River. This small city has experienced fluctuations in homeownership rates and housing prices over the past decade. The overall trend shows an increase in homeownership percentage, with average home prices rising steadily and average rent prices showing more variability.
From 2013 to 2022, Fort Benton saw a significant increase in homeownership rates. In 2013, 71% of residents owned their homes, which increased to 78% by 2022. This 7% rise in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $117,119, and by 2022, it had more than doubled to $251,106. This trend suggests that despite rising home prices, more residents were able to purchase homes, possibly due to factors such as increased local economic opportunities or favorable mortgage conditions.
The relationship between federal interest rates and homeownership rates in Fort Benton shows an interesting pattern. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership rates fluctuated between 64% and 72%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates remained relatively stable around 66-69%. Interestingly, the most substantial increase in homeownership occurred between 2020 and 2022, rising from 71% to 78%, despite interest rates increasing from 0.38% to 1.68%. This suggests that while lower interest rates generally encourage homeownership, other local factors may have played a more significant role in Fort Benton's housing market.
The renter population in Fort Benton has shown a decreasing trend, from 29% in 2013 to 22% in 2022. During this period, average rent prices fluctuated considerably. In 2013, the average rent was $585, which decreased to $511 by 2016. However, rent prices then began to increase, reaching $638 in 2022. This overall increase in rent prices, coupled with the decrease in the percentage of renters, might indicate a shift towards homeownership or changes in the local rental market supply.
In 2023 and 2024, Fort Benton's housing market continued to evolve. The average home price in 2023 was $251,167, showing a slight increase from 2022. In 2024, the average home price rose to $258,792, indicating continued growth in the housing market. Concurrently, federal interest rates increased significantly to 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and housing affordability.
Looking ahead, based on the historical data and current trends, we can forecast the following 5-year trends for Fort Benton: Average home prices are likely to continue their upward trajectory, potentially reaching around $300,000 by 2029. Rent prices may stabilize or increase moderately, possibly reaching an average of $700-$750 per month. Homeownership rates could plateau or slightly decrease due to higher interest rates and increasing home prices, potentially settling around 75-76%.
In summary, Fort Benton has experienced a notable increase in homeownership rates and average home prices over the past decade. The rental market has seen more volatility, with a decreasing percentage of renters despite fluctuating rent prices. The city's housing market has shown resilience and growth, even in the face of rising interest rates, suggesting strong local economic factors influencing these trends.
