Loading Content...
Home Values Soar as Ownership Rises in Northeast Bozeman's Resilient Housing Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
The Northeast neighborhood of Bozeman, Montana, has experienced significant changes in its housing market over the past decade. This area has seen a notable shift in homeownership rates, alongside substantial increases in both average home prices and average rent prices. The neighborhood's population has fluctuated over the years, with 3,040 residents recorded in 2022.
The relationship between homeownership rates and average home prices in Northeast Bozeman reveals an interesting trend. In 2013, the homeownership rate was 34%, with an average home price of $267,684. As average home prices steadily increased, reaching $519,167 in 2019, the homeownership rate initially declined to 28% in 2015 before beginning to rise again. By 2022, the homeownership rate had climbed to 55%, coinciding with an average home price of $793,906. This suggests that despite rising home prices, more residents were able to become homeowners, possibly due to increased local incomes or other economic factors.
Federal interest rates have played a role in homeownership trends in Northeast Bozeman. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership rates initially decreased. However, as interest rates began to rise gradually from 2017 (1.00%) to 2019 (2.16%), homeownership rates also started to increase. This trend continued even as interest rates dropped again in 2020 and 2021, with homeownership reaching 49% in 2021 when the interest rate was just 0.08%.
Renter percentages and average rent prices in Northeast Bozeman have also shown notable trends. In 2013, 66% of residents were renters, with an average rent of $493. As the renter percentage increased to 72% in 2015, average rent rose to $730. However, by 2022, the renter percentage had decreased to 45%, while average rent had climbed to $1,114. This inverse relationship between renter percentages and average rent prices suggests that as rents became more expensive, more residents may have opted for homeownership.
In 2023 and 2024, average home prices in Northeast Bozeman experienced a slight decrease followed by a modest increase. The average home price in 2023 was $766,968, down from $793,906 in 2022. However, in 2024, the average home price rose to $779,825. Interestingly, this occurred despite federal interest rates increasing to 5.02% in 2023 and 5.33% in 2024, which typically would be expected to cool the housing market.
Looking ahead, predictive models suggest that average home prices in Northeast Bozeman may continue to rise over the next five years, albeit at a potentially slower rate than observed in the past decade. Average rent prices are also expected to increase, possibly reaching around $1,400 by 2029. However, these projections are subject to various economic factors and local market conditions.
In summary, Northeast Bozeman has experienced a significant increase in homeownership rates since 2013, rising from 34% to 55% in 2022, despite substantial growth in average home prices. The neighborhood has also seen a steady increase in average rent prices, which may have contributed to the shift towards homeownership. The recent slight dip and subsequent rise in average home prices in 2023 and 2024, coupled with high interest rates, indicate a resilient local housing market that continues to adapt to changing economic conditions.
