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Kalispell, Montana: Rising Home Values and Stable Ownership in a Picturesque Mountain City
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
Kalispell, the largest city in Northwest Montana, is nestled in the Flathead Valley and serves as a gateway to Glacier National Park. This vibrant city has experienced significant growth and changes in its housing market over the past decade, with notable shifts in homeownership rates, average home prices, and average rent prices.
The homeownership rate in Kalispell has remained relatively stable, fluctuating between 61% and 65% from 2013 to 2022. During this period, average home prices have shown a substantial upward trend. In 2013, the average home price in Kalispell was $206,158. By 2022, this figure had dramatically increased to $556,567, representing a remarkable 170% growth over nine years. This sharp rise in home prices, however, did not significantly impact homeownership rates, which only increased slightly from 64% in 2013 to 65% in 2020 and 2021, before settling at 64% in 2022.
Federal interest rates have played a role in shaping homeownership trends in Kalispell. From 2013 to 2015, when interest rates were at historic lows (0.11% to 0.13%), homeownership rates decreased slightly from 64% to 61%. As interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, homeownership rates stabilized and even increased slightly to 64%. This suggests that other factors, such as local economic conditions and housing supply, may have had a more significant impact on homeownership than interest rates alone.
Renter percentages in Kalispell have mirrored the homeownership rates, ranging from 35% to 39% between 2013 and 2022. Average rent prices have shown moderate fluctuations during this period. In 2013, the average rent was $1,006, which increased to $1,020 in 2017, before declining to $982 in 2019. By 2022, the average rent had risen to $1,003, representing a modest overall increase of less than 1% since 2013. The relative stability in rent prices, despite the city's population growth from 29,646 in 2013 to 35,301 in 2022, suggests that housing supply has largely kept pace with demand in the rental market.
In 2023, the average home price in Kalispell experienced a slight decrease to $535,290, down from $556,567 in 2022. This represents a 3.8% decline, which could be attributed to the sharp increase in federal interest rates to 5.02% in 2023. Moving into 2024, the average home price has rebounded slightly to $548,324, a 2.4% increase from 2023. The federal interest rate has further increased to 5.33% in 2024, which may impact future home buying activity.
Looking ahead, based on historical trends and current market conditions, we can project potential scenarios for the next five years. Average home prices in Kalispell may continue to experience moderate growth, possibly reaching around $600,000 by 2029. However, this growth rate is likely to be slower than the rapid increases seen in the past decade. Average rent prices could see more substantial increases, potentially reaching $1,200 to $1,300 by 2029, as demand for rental properties may increase if high home prices and interest rates persist.
In summary, Kalispell's housing market has been characterized by dramatic increases in average home prices, relatively stable homeownership rates, and modest growth in average rent prices. The city's desirable location and growing population have contributed to a robust housing market, despite fluctuations in federal interest rates. As Kalispell continues to evolve, balancing housing affordability with economic growth will be crucial for maintaining a diverse and thriving community.
