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Home Values and Ownership in Harlowton, Montana: Gateway to the Musselshell Valley
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
Harlowton, a small city in Montana, has experienced subtle shifts in its housing landscape over the past decade. This quaint community, known for its rich railroad history and as the gateway to the Musselshell Valley, has seen fluctuations in homeownership rates and modest increases in both average home prices and average rent prices.
The homeownership rate in Harlowton has shown resilience, with a slight overall increase from 69% in 2016 to 77% in 2022. This trend coincided with a significant rise in average home prices, which grew from $83,334 in 2016 to $156,041 in 2022, representing an impressive 87% increase over six years. The relationship between homeownership and home prices in Harlowton appears to be positive, suggesting that rising property values have not deterred local residents from purchasing homes.
Federal interest rates have played a role in shaping homeownership trends in Harlowton. The period from 2016 to 2022 saw interest rates fluctuate, starting at 0.4% in 2016, peaking at 2.16% in 2019, and then dropping to 0.08% in 2021 before rising to 1.68% in 2022. The low interest rate environment, particularly in 2020 and 2021, likely contributed to the maintenance of high homeownership rates, as it made mortgage financing more accessible to potential buyers.
Renter percentages in Harlowton have inversely mirrored homeownership trends, decreasing from 30% in 2016 to 23% in 2022. Despite this decline in the renter population, average rent prices have shown a steady upward trajectory. The average rent increased from $537 in 2016 to $817 in 2022, a 52% rise. This increase in rent prices, despite a smaller renter pool, could be attributed to overall housing market appreciation and potentially limited rental stock in the small city.
In 2023 and 2024, Harlowton's housing market continued its upward trajectory. The average home price reached $167,115 in 2023 and further increased to $170,985 in 2024, representing a 9.6% growth over two years. This growth occurred against a backdrop of significantly higher federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for new homebuyers.
Looking ahead, predictive models suggest that Harlowton's housing market will continue to appreciate, albeit at a more moderate pace. Average home prices are projected to increase by approximately 15-20% over the next five years, potentially reaching around $200,000 by 2029. Average rent prices are expected to follow a similar trend, with a projected increase of 10-15% over the same period, potentially approaching $950 per month by 2029.
In summary, Harlowton has demonstrated a robust housing market characterized by increasing homeownership rates, rising average home prices, and growing average rent prices. The city has shown resilience in maintaining high levels of homeownership despite significant property value appreciation. The interplay between federal interest rates, homeownership, and housing prices underscores the complex dynamics at play in this small Montana city's real estate landscape.
