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High Home Values and Ownership Trends in Sparse Montana Zip Code 59829
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
Zip code 59829, located in Conner, Montana, presents an intriguing case study of housing trends in a rural setting. This expansive area, covering 677.77 square miles, has experienced notable fluctuations in homeownership rates and housing prices over the past decade. The overall trend shows a slight decrease in homeownership, coupled with a significant increase in average home prices and average rent costs.
The homeownership rate in zip code 59829 has shown a gradual decline from 80% in 2013 to 74% in 2022. This 7.5% decrease in homeownership coincides with a substantial rise in average home prices. In 2013, the average home price was $200,631, which more than doubled to $563,895 by 2022, representing a remarkable 181% increase. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents.
Federal interest rates have played a significant role in shaping homeownership trends. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained relatively stable, ranging from 74% to 80%. However, as interest rates began to rise from 2017 (1%) to 2019 (2.16%), we observed a slight decline in homeownership, dropping to 73% by 2019. Interestingly, despite the sharp drop in interest rates in 2020 and 2021 (0.38% and 0.08% respectively), homeownership did not rebound, likely due to the concurrent spike in home prices.
The renter population in zip code 59829 has grown from 20% in 2013 to 26% in 2022, an increase of 30%. This shift correlates with a significant rise in average rent prices. In 2013, the average rent was $493, which increased to $663 by 2022, representing a 34.5% increase. The population has remained relatively stable during this period, fluctuating between 1,997 and 2,230 residents, suggesting that the increase in renters is more likely due to housing affordability issues rather than population growth.
Looking at the most recent data, 2023 saw a slight dip in average home prices to $531,284, a 5.8% decrease from 2022. However, prices rebounded slightly in 2024 to $536,412. This coincides with a sharp increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may continue to impact homeownership rates and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 59829 will continue to rise, albeit at a more moderate pace. Based on historical data and current economic factors, we project average home prices could reach approximately $600,000 by 2029. Average rent prices are also expected to increase, potentially reaching around $750 per month in the same timeframe. These projections assume a continuation of current economic conditions and housing market trends.
In summary, zip code 59829 has experienced a significant transformation in its housing landscape over the past decade. The most striking trends include the substantial increase in average home prices, a gradual shift from homeownership to renting, and rising average rent costs. These changes, influenced by factors such as federal interest rates and local economic conditions, suggest a changing dynamic in housing affordability and accessibility in this Montana community.
