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Great Falls Home Values Soar Amid River Confluence
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Great Falls, Montana, a city known for its rich history and proximity to the Missouri River, has experienced significant changes in its housing market over the past decade. These changes reflect broader economic trends and local market dynamics. The homeownership rate in Great Falls has shown a gradual increase in recent years, rising from 63% in 2015 to 68% in 2022. This upward trend in homeownership coincides with a significant appreciation in average home prices. In 2015, the average home price in Great Falls was $175,214, which steadily climbed to $283,899 by 2022, representing a substantial 62% increase over seven years.
The relationship between federal interest rates and homeownership rates in Great Falls presents an interesting dynamic. Despite historically low interest rates between 2015 and 2021 (ranging from 0.08% to 1.83%), the city's homeownership rate remained relatively stable, hovering around 63-65%. However, as interest rates began to rise more sharply in 2022 to 1.68%, Great Falls saw its homeownership rate increase to 68%. This suggests that local factors, such as job market stability and housing affordability relative to income, may have played a more significant role in homeownership decisions than national interest rate trends alone.
Conversely, the percentage of renters in Great Falls has decreased from 37% in 2015 to 32% in 2022. During this period, average rent prices experienced a notable increase, rising from $764 in 2015 to $943 in 2022, a 23% jump. This trend indicates that while fewer residents are renting, those who do are facing higher costs. The population growth from 65,102 in 2015 to 67,091 in 2022 may have contributed to the upward pressure on rent prices, even as the proportion of renters decreased.
In 2023 and 2024, Great Falls continued to see growth in average home prices, reaching $302,080 in 2023 and $317,308 in 2024. This represents a 6.4% increase from 2022 to 2023 and a further 5% increase from 2023 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions and affordability.
Looking ahead, predictive models suggest that average home prices in Great Falls may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach approximately $350,000 by 2029. Average rent prices are also expected to increase, potentially reaching around $1,100 per month by 2029, assuming current economic conditions and population growth trends persist.
In summary, Great Falls has experienced a steady increase in homeownership rates alongside significant appreciation in average home prices. The rental market has seen a decrease in the proportion of renters but an increase in average rent prices. These trends, combined with population growth and fluctuating interest rates, paint a picture of a dynamic housing market in Great Falls, with potential for continued growth and changes in the coming years.
