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"Havre, Montana: Rising Home Values and Shifting Ownership in a Historic 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
Havre, Montana, is a small city located in the northern part of the state, known for its rich history and proximity to the beautiful Bear Paw Mountains. Over the past decade, Havre has experienced fluctuations in homeownership rates and housing prices, reflecting broader economic trends and local dynamics.
The homeownership rate in Havre has shown some variability over the years, with a general trend of slight decline. In 2013, the homeownership rate stood at 67%, reaching a peak of 69% in 2015. However, by 2018 and 2019, it had decreased to 60%. Concurrently, average home prices in Havre have seen a steady increase. In 2013, the average home price was $134,133, rising to $177,512 by 2019, representing a 32% increase over six years. This upward trend in home prices, despite fluctuations in homeownership rates, suggests a complex interplay of factors affecting the local housing market.
Federal interest rates have played a significant role in shaping homeownership trends in Havre. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates in Havre remained relatively stable, hovering around 65-69%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), there was a noticeable decline in homeownership rates, dropping to 60% by 2019. This inverse relationship demonstrates how higher interest rates can make homeownership less affordable, potentially pushing more residents towards renting.
The rental market in Havre has shown interesting trends as well. The percentage of renters increased from 33% in 2013 to 40% in 2018 and 2019. During this period, average rent prices also saw an overall increase, rising from $718 in 2013 to $806 in 2018, before slightly decreasing to $764 in 2019. This trend suggests that as homeownership became less attainable for some residents, demand for rentals increased, driving up rental prices.
In 2023 and 2024, Havre's housing market continued to evolve. The average home price in 2023 was $252,881, showing a slight decrease from the 2022 figure of $257,452. However, in 2024, prices rebounded slightly to $257,114. These fluctuations occurred against a backdrop of significantly higher federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher rates likely contributed to the stabilization of home prices after the rapid increases seen in previous years.
Looking ahead, based on historical trends and current market conditions, we can project potential scenarios for Havre's housing market over the next five years. Average home prices are likely to continue their upward trajectory, albeit at a more moderate pace due to higher interest rates. We might expect average home prices to reach around $280,000 to $300,000 by 2029. Rent prices are also anticipated to increase, potentially reaching an average of $900 to $950 per month in the same timeframe. However, these projections are subject to various economic factors and local market conditions.
In summary, Havre's housing market has demonstrated resilience and growth over the past decade, with rising home values and increasing rental demand. The interplay between federal interest rates, homeownership rates, and housing affordability has been a key factor shaping these trends. As the city moves forward, balancing housing affordability with market growth will be crucial for maintaining a vibrant and diverse community.
