Loading Content...
Jordan, Montana: Shifting Home Values and Ownership in a Small Community
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Jordan, Montana, is a small community that has experienced notable changes in its housing market over the past decade. This analysis explores the trends in homeownership rates, average home prices, and average rent prices, highlighting the relationships between these factors and their implications for the local real estate market. The homeownership rate in Jordan has fluctuated over the years, showing a general downward trend from 2013 to 2022. In 2013, the homeownership rate was 76%, which decreased to 69% by 2022. This decline coincided with a significant increase in average home prices. From 2016 to 2022, average home prices in Jordan rose from $126,005 to $218,409, representing a 73% increase over six years.
Federal interest rates have played a role in shaping homeownership trends. From 2013 to 2015, when interest rates were extremely low (0.11% to 0.13%), homeownership rates remained relatively stable, hovering around 75-77%. However, as interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, homeownership rates declined. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
As homeownership rates decreased, the percentage of renters in Jordan increased from 23% in 2013 to 31% in 2022. This shift coincided with a steady rise in average rent prices. The average monthly rent increased from $512 in 2013 to $635 in 2022, a 24% increase over nine years. It's worth noting that the population of Jordan decreased during this period, from 1,144 in 2013 to 976 in 2022, which may have influenced the rental market dynamics.
In 2023 and 2024, Jordan experienced a slight dip in average home prices, followed by a rebound. The average home price in 2023 was $207,011, showing a 5% decrease from 2022. However, in 2024, prices rose again to $216,084. This recent trend occurred alongside a significant increase in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024, potentially impacting home affordability and market dynamics.
Looking ahead, based on the observed trends, we can predict that average home prices in Jordan may continue to rise moderately over the next five years, potentially reaching around $240,000 by 2029. However, this growth rate may be tempered by high interest rates if they persist. Average rent prices are also likely to continue their upward trajectory, potentially reaching approximately $700 per month by 2029, assuming the current trends persist.
In summary, Jordan has experienced a gradual shift from homeownership to renting, accompanied by substantial increases in both average home prices and rent. These changes have occurred against a backdrop of fluctuating interest rates and a declining population, creating a complex and evolving housing market in this small Montana community.
