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Home Values and Ownership in Zip Code 59917: Fortine's Resilient Housing Market
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 59917, located in Fortine, Montana, presents an intriguing case study of homeownership and housing market dynamics in a rural setting. This area has experienced notable fluctuations in both ownership percentages and housing prices over the past decade, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 59917 has shown a slight decline over the years, moving from 84% in 2013 to 79% in 2022. This trend coincides with a significant increase in average home prices, which rose from $216,797 in 2013 to $502,235 in 2022, representing a substantial 131.7% increase over this period. The inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less accessible for some residents.
Federal interest rates have played a crucial role in shaping homeownership trends in the area. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%, which coincided with relatively stable homeownership rates around 82-84%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% by 2022, we observed a gradual decline in homeownership percentages to 79%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership by making mortgages more affordable.
The renter population in zip code 59917 has seen a corresponding increase, rising from 15% in 2013 to 21% in 2022. Interestingly, average rent prices have shown considerable volatility during this period. Starting at $704 in 2013, rent prices peaked at $969 in 2014 before experiencing fluctuations, ultimately reaching $842 in 2022. The increase in the renter population, despite the relatively modest growth in rent prices compared to home values, suggests that more residents may be opting for or being forced into renting due to the rapidly appreciating housing market.
In 2023 and 2024, the housing market in zip code 59917 continued its upward trajectory, with average home prices reaching $513,302 in 2023 and further climbing to $531,626 in 2024. This represents a 5.8% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and market dynamics.
Looking ahead, based on historical trends and current market conditions, we can project continued growth in average home prices for zip code 59917 over the next five years. Assuming a conservative annual growth rate of 4%, we might expect average home prices to reach approximately $646,000 by 2029. Rent prices, which have shown more volatility, could potentially stabilize and grow at a more moderate pace, perhaps reaching an average of around $1,100 per month by 2029, assuming a 3% annual increase.
In summary, zip code 59917 has experienced a notable shift in its housing landscape over the past decade. The area has seen a gradual decrease in homeownership rates alongside substantial increases in average home prices. This trend, coupled with rising interest rates and a growing renter population, suggests a changing dynamic in the local housing market. As property values continue to appreciate, it will be crucial to monitor how these trends impact the community's demographic composition and overall affordability in the coming years.
