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Home Values and Ownership in Loma, Montana: A Decade of Growth in a Rural Community
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
Loma, Montana, is a small rural community nestled in the heart of the state. This quaint town has experienced fluctuating homeownership rates and significant changes in average home and rent prices over the past decade. The overall trend shows a slight increase in homeownership, accompanied by substantial growth in both average home values and rent prices.
Homeownership rates in Loma have shown a modest upward trend, with some fluctuations. In 2013, the homeownership rate was 66%, which increased to 73% by 2022. This rise coincided with a significant increase in average home prices. In 2016, the average home price was $120,047, which steadily climbed to $217,455 by 2022, representing an impressive 81% increase over six years. This correlation suggests that as property values appreciated, more residents were motivated to invest in homeownership.
Federal interest rates have played a crucial role in shaping homeownership trends in Loma. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates increased from 66% to 72%, likely due to more affordable financing options. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates remained relatively stable, suggesting that other factors, such as local economic conditions, may have counterbalanced the impact of rising interest rates.
Renter percentages in Loma have shown an inverse relationship to homeownership rates, naturally decreasing as homeownership increased. In 2013, 34% of residents were renters, which decreased to 27% by 2022. Interestingly, despite this decrease in the renter population, average rent prices have risen dramatically. In 2013, the average rent was $449, which more than tripled to $1,375 by 2022. This substantial increase in rent prices, despite a shrinking renter population, could be attributed to factors such as improved housing quality, limited rental supply, or broader economic trends affecting the area.
Looking at the most recent data, average home prices in Loma reached $211,098 in 2023 and further increased to $217,701 in 2024. This continued upward trend in home values occurs alongside a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Loma will continue to rise, albeit at a potentially slower rate due to higher interest rates. By 2029, average home prices could reach approximately $250,000 to $270,000. Average rent prices are also expected to increase, potentially reaching $1,800 to $2,000 per month by 2029, assuming current economic conditions and local market factors persist.
In summary, Loma has experienced a notable increase in homeownership rates over the past decade, coupled with substantial growth in both average home values and rent prices. The interplay between federal interest rates, local economic conditions, and housing market dynamics has shaped these trends. As the community moves forward, it will likely continue to see appreciation in property values and rental costs, potentially influencing the balance between homeowners and renters in this small Montana town.
