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Home Values Double in Helena's North Neighborhood: A Decade of Growth and Resilience
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
The North neighborhood of Helena, Montana, has experienced significant changes in its housing market over the past decade. This area has seen notable shifts in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions. The neighborhood has maintained a relatively stable homeownership rate while experiencing substantial appreciation in home values.
Homeownership in North Helena has remained relatively steady, with minor fluctuations. The rate stood at 69% in 2013, decreased to 63% by 2017, and then rebounded to 64% in 2022. During this period, average home prices saw a remarkable increase. From 2010 to 2022, the average home value rose from $192,732 to $386,966, representing a 100.8% increase over 12 years.
The relationship between federal interest rates and homeownership rates in North Helena generally followed expected patterns. From 2013 to 2016, relatively low interest rates (0.11% to 0.4%) corresponded with a slight decrease in homeownership from 69% to 63%. As interest rates rose more sharply from 2017 onwards, homeownership rates stabilized around 63-64%, suggesting that local factors may have offset the impact of rising interest rates on homeownership.
Renter percentages in North Helena have shown an inverse relationship to homeownership rates. The proportion of renters increased from 31% in 2013 to 37% in 2017, before slightly decreasing to 36% in 2022. Average rent prices have generally trended upwards, rising from $955 in 2013 to $992 in 2022, an increase of about 3.9%. A significant jump in average rent to $1,056 occurred in 2021, possibly influenced by the neighborhood's population peak of 6,691 in 2020, before settling back to $992 in 2022 as the population decreased to 5,841.
In 2023 and 2024, North Helena continued to see growth in average home prices. The average home price reached $394,011 in 2023 and further increased to $404,912 in 2024, representing a 4.6% rise over two years. This growth occurred despite high federal interest rates of 5.02% in 2023 and 5.33% in 2024, suggesting strong local demand for housing in the area.
Predictive models suggest that North Helena may continue to see moderate growth in both average home prices and average rent prices over the next five years. Home prices could potentially reach around $450,000 by 2029, assuming a continuation of recent trends. Average rent prices might increase to approximately $1,100 per month in the same period, reflecting ongoing demand for rental properties in the area.
In summary, the North neighborhood of Helena has demonstrated resilience and growth in its housing market. The area has maintained a relatively stable homeownership rate while experiencing significant appreciation in home values. Despite fluctuations in population and economic conditions, the neighborhood continues to attract both homeowners and renters, with a trend towards increasing property values and moderate rent growth. These trends suggest a robust and desirable residential market in North Helena for the foreseeable future.
