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Geraldine, Montana: Rising Home Values and 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
Geraldine, a small town in Montana, has experienced fluctuations in its population and housing market over the past decade. This quaint community, known for its close-knit atmosphere and rural charm, has seen interesting trends in homeownership rates, average home prices, and rental costs.
The homeownership rate in Geraldine has shown a general upward trend from 2013 to 2022. In 2013, the ownership rate was 73%, which increased to a peak of 81% in 2019. However, by 2022, it had slightly decreased to 74%. This overall increase in homeownership coincides with a significant rise in average home prices. In 2016, the average home price was $141,590, which steadily increased to $234,876 by 2022, representing a substantial 65.9% increase over six years.
Federal interest rates have played a role in homeownership trends in Geraldine. From 2013 to 2016, interest rates remained low, ranging from 0.11% to 0.40%, which likely contributed to the increase in homeownership during this period. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), we see a continued increase in homeownership, possibly due to residents rushing to purchase homes before rates climbed further.
The rental market in Geraldine has shown inverse trends to homeownership. The percentage of renters decreased from 24% in 2013 to 19% in 2019, before rising slightly to 24% in 2022. Despite this overall decrease in renter percentage, average rent prices have consistently increased. In 2013, the average rent was $604, which rose to $1,026 by 2022, a substantial 69.9% increase over nine years. This increase in rent prices, despite a fluctuating renter population, suggests a tightening rental market, possibly due to limited rental inventory in this small town.
In 2023 and 2024, Geraldine's housing market showed signs of stabilization. The average home price in 2023 was $220,902, a slight decrease from 2022, but still significantly higher than previous years. In 2024, the average home price rose to $229,964, indicating a recovery in the market. Interest rates in 2023 and 2024 were considerably higher at 5.02% and 5.33% respectively, which may impact future homeownership rates and housing affordability in the town.
Looking ahead, based on the trends observed, we can predict that average home prices in Geraldine will continue to rise over the next five years, albeit at a slower pace than seen in recent years. The average home price could potentially reach around $260,000 by 2029. Rent prices are also expected to continue their upward trajectory, possibly reaching an average of $1,200 to $1,300 per month in the same timeframe.
In summary, Geraldine has experienced a notable increase in homeownership rates and a significant rise in both home prices and rent costs over the past decade. The interplay between federal interest rates, housing prices, and rental market dynamics has shaped the town's real estate landscape. As Geraldine moves forward, it will likely continue to see moderate growth in its housing market, reflecting its appeal as a small, tight-knit community in Montana.
