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Home Values and Ownership in Denton, Montana: A Rural Town's Real Estate Transformation
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
Denton, Montana, a small rural community, has undergone significant changes in its housing market and demographic composition over the past decade. This analysis examines the trends in homeownership rates, average home prices, and average rent prices, providing insights into the evolving real estate landscape of this small town. From 2013 to 2022, Denton experienced a dramatic shift in its homeownership rate. In 2013, 86% of residents owned their homes, but by 2022, this figure had dropped to 49%. This substantial decrease in homeownership coincided with a significant increase in average home prices. The average home price in Denton more than doubled from $157,144 in 2016 to $320,672 in 2022. This inverse relationship suggests that rising home prices may have made homeownership less attainable for many residents.
Federal interest rates played a crucial role in homeownership trends. From 2013 to 2016, when interest rates were near historic lows (ranging from 0.11% to 0.40%), Denton's homeownership rate remained relatively stable at around 80-86%. However, as interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), a gradual decline in homeownership was observed. This trend accelerated in 2020 and 2021, despite low interest rates, possibly due to other economic factors related to the global pandemic.
As homeownership declined, the percentage of renters in Denton increased from 14% in 2013 to 50% in 2022. Average rent prices also showed an upward trend, albeit less dramatic than home prices. The average rent increased from $694 in 2013 to $850 in 2022, representing a 22.5% increase. This increase was much less than the 104% increase in average home prices over a similar period. The town's population fluctuated during this time, from 283 in 2013 to 348 in 2022, which may have contributed to the increased demand for rental properties.
In 2023 and 2024, a slight correction in the housing market was observed. The average home price in Denton decreased from $320,672 in 2022 to $300,259 in 2023 and further to $296,339 in 2024, representing a 7.6% decrease over two years. Concurrently, federal interest rates rose sharply to 5.02% in 2023 and 5.33% in 2024, which likely contributed to the cooling of the housing market.
Projecting potential trends for the next five years, if current patterns continue, average home prices might stabilize or potentially decrease slightly, given the recent market correction and high interest rates. Average rent prices may continue to rise moderately as demand for rental properties remains strong. The homeownership rate could potentially stabilize or see a slight increase if home prices become more affordable relative to local incomes.
In conclusion, Denton has transitioned from a predominantly homeowner community to one with an almost equal split between owners and renters. This change has been accompanied by substantial increases in both home prices and rent, though home prices have shown more volatility. The interplay between federal interest rates, housing affordability, and demographic changes will likely continue to shape Denton's real estate landscape in the coming years.
