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Fort Peck, Montana: Rising Home Values and High Ownership Rates in a Small Town
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 Peck, located in Montana, is a small community that has experienced fluctuations in its population and housing market over the past decade. The town has seen shifts in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local dynamics.
The homeownership rate in Fort Peck has shown some variability but maintained a generally high level. In 2013, the homeownership rate was 90%, which decreased to 79% by 2017. However, there was a rebound in recent years, with the rate reaching 90% again in 2022. This trend coincides with changes in average home prices, which have shown significant growth. From 2016 to 2022, average home prices in Fort Peck increased from $200,897 to $338,533, representing a substantial 68.5% increase over six years.
The relationship between federal interest rates and homeownership rates in Fort Peck aligns with well-established trends. As interest rates remained low from 2013 to 2016, ranging from 0.11% to 0.40%, homeownership rates were generally high, above 84%. When interest rates began to rise more significantly in 2017 (1%) and 2018 (1.83%), there was a corresponding dip in homeownership rates to 79% and 82%, respectively. This pattern suggests that lower interest rates indeed encouraged homeownership in Fort Peck by making financing more affordable.
Renter percentages and average rent prices in Fort Peck have shown an interesting relationship. As the renter percentage increased from 10% in 2013 to 21% in 2017, average rent prices also rose from $611 to $667. However, as the renter percentage decreased to 9% by 2022, average rent actually continued to increase, reaching $638. This trend suggests that factors beyond simple supply and demand, such as overall housing market conditions or local economic factors, may be influencing rent prices in the town.
In 2023 and 2024, Fort Peck experienced a slight dip in average home prices, followed by a modest increase. The average home price in 2023 was $333,495, representing a 1.5% decrease from 2022. However, in 2024, prices rebounded to $341,275, a 2.3% increase from 2023. Notably, interest rates in 2023 and 2024 were significantly higher at 5.02% and 5.33% respectively, which could potentially impact future homeownership rates and housing market dynamics.
Looking ahead, based on the historical data and current trends, we can forecast the following 5-year trends for Fort Peck: Average home prices are likely to continue their upward trajectory, albeit at a more moderate pace. We might expect prices to reach around $375,000 to $400,000 by 2029. Average rent prices may stabilize or increase slightly, potentially reaching $700 to $750 per month by 2029, assuming the current balance between supply and demand remains relatively stable.
In summary, Fort Peck has demonstrated resilience in its housing market, with high homeownership rates and steadily increasing property values. The interplay between interest rates, homeownership, and rental markets has followed expected patterns, with some local variations. The recent uptick in interest rates may pose challenges to homeownership affordability, but the town's strong ownership culture suggests it may weather these changes effectively. As the community moves forward, balancing housing affordability with property value growth will be key to maintaining its attractiveness to both longtime residents and potential newcomers.
