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Helena's Housing Market: Rising Home Values in Montana's Capital
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Helena, the capital city of Montana, is a vibrant community nestled in the heart of the Rocky Mountains. Known for its rich history and outdoor recreational opportunities, Helena has experienced notable changes in its housing market over the past decade. The city has seen fluctuations in homeownership rates, with a general trend towards increased renting, while average home prices have shown consistent growth.
From 2013 to 2022, Helena's homeownership rate experienced slight variations. In 2013, 59% of residents owned their homes. This figure decreased to 56% in 2015 and remained stable until 2019 when it increased slightly to 57%. By 2022, the homeownership rate stood at 57%. During this same period, average home prices in Helena saw a significant upward trend. In 2013, the average home price was $213,726. By 2022, this figure had more than doubled to $439,077, representing a 105% increase over nine years.
The relationship between federal interest rates and homeownership rates in Helena shows some correlation. In 2013, when interest rates were at 0.11%, the homeownership rate was at its highest at 59%. As interest rates began to rise gradually from 2016 onwards, reaching 1.68% in 2022, the homeownership rate stabilized around 56-57%. This suggests that while lower interest rates may have initially encouraged homeownership, other factors also played a role in the housing market dynamics of Helena.
Renter percentages in Helena have shown a slight increase over the years, inversely mirroring the homeownership trends. In 2013, 41% of residents were renters, which increased to 44% by 2015 and remained stable until 2019 when it decreased slightly to 43%. The average rent prices, however, did not follow a consistent trend. In 2013, the average rent was $897, which decreased to $819 in 2016 before rising again to $852 in 2022. This fluctuation in rent prices, despite the increase in renter percentage, could be attributed to various factors including housing supply and local economic conditions.
Looking at the most recent data, the average home price in Helena continued its upward trajectory, reaching $445,409 in 2023 and further increasing to $460,437 in 2024. This represents a 4.9% increase from 2023 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends.
Applying predictive models to forecast 5-year trends, it's anticipated that average home prices in Helena will continue to rise, albeit potentially at a slower rate due to higher interest rates. Average rent prices are also expected to increase moderately, driven by the consistent demand for rental properties and the overall appreciation of real estate in the area.
In summary, Helena's housing market has demonstrated resilience and growth over the past decade. The city has maintained a relatively stable homeownership rate despite rising home prices, while experiencing a slight increase in the renter population. The significant appreciation in average home values, coupled with fluctuating rent prices, reflects a dynamic real estate environment influenced by various economic factors. As Helena continues to evolve, these housing trends will play a crucial role in shaping the city's future development and community composition.
