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Home Values and Ownership Trends in Zip Code 59845: A Decade of Growth in Rural Montana
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 59845, located in Niarada, Montana, is a rural area spanning 338.15 square miles. This expansive region has seen fluctuations in homeownership rates and housing prices over the past decade. The area has maintained a relatively high rate of owner-occupied housing, while average home prices have shown a significant upward trend, particularly in recent years.
The homeownership rate in zip code 59845 has remained relatively stable, with slight fluctuations between 65% and 73% from 2013 to 2022. In 2013, the homeownership rate was 69%, and it reached its peak at 73% in 2018 before settling back to 70% in 2022. During this period, average home prices experienced a substantial increase. In 2013, the average home price was $96,582, and by 2022, it had risen to $237,857, representing a remarkable 146% increase over nine years.
The relationship between federal interest rates and homeownership rates in this area doesn't show a strong correlation. Despite historically low interest rates from 2013 to 2021 (ranging from 0.08% to 2.16%), the homeownership rate remained relatively stable. This suggests that other factors, such as local economic conditions or housing supply, may have a more significant impact on homeownership in this rural area than national interest rates.
Renter percentages in zip code 59845 have fluctuated inversely to homeownership rates, ranging from 27% to 35% between 2013 and 2022. The average rent prices have shown moderate volatility during this period. In 2013, the average rent was $527, which decreased to $483 in 2017 before rising again to $517 in 2022. This represents a modest overall decrease of 1.9% in average rent over the decade. The population of the area has remained relatively stable, with 1,434 residents in 2013 and 1,415 in 2022, which may contribute to the relatively steady rental market.
In 2023, the average home price in zip code 59845 reached $242,704, a 2% increase from 2022. This growth continued into 2024, with average home prices rising to $253,938, marking a 4.6% increase from 2023. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, which typically discourage home buying, the local housing market has continued to appreciate.
Looking ahead, based on the historical data and recent trends, we can forecast that average home prices in zip code 59845 are likely to continue their upward trajectory over the next five years, albeit potentially at a slower pace due to higher interest rates. Average rent prices may see moderate increases as well, possibly in line with inflation and any potential population growth in the area.
In summary, zip code 59845 has demonstrated a robust and growing housing market, with significant appreciation in average home values over the past decade. The area maintains a high rate of homeownership despite recent increases in interest rates. While rent prices have remained relatively stable, they may face upward pressure in the coming years. The resilience of the local housing market in the face of changing economic conditions suggests a strong underlying demand for housing in this Montana community.
