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Miller Creek: Rising Home Values and Ownership Rates Amid Interest Rate Fluctuations
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Miller Creek, a picturesque neighborhood in Missoula, Montana, has experienced significant changes in homeownership and housing prices over the past decade. This analysis examines the trends in home values, ownership rates, and rental market dynamics from 2013 to 2024.
From 2013 to 2022, Miller Creek saw a substantial increase in homeownership rates, rising from 67% to 77%. This 10 percentage point increase coincided with a dramatic rise in average home prices. In 2013, the average home in Miller Creek was valued at $288,644. By 2022, this figure had more than doubled to $640,118, representing a 122% increase over nine years. This trend suggests a strong correlation between rising property values and increased homeownership in the neighborhood.
The relationship between federal interest rates and homeownership rates in Miller Creek presents an intriguing dynamic. Despite fluctuations in interest rates, the neighborhood maintained a steady increase in homeownership. For instance, when interest rates were at a low of 0.08% in 2021, the homeownership rate was 77%. This rate remained constant at 77% in 2022, even as interest rates rose to 1.68%. This stability in homeownership rates, despite rising interest rates, indicates that other factors such as local economic conditions and housing demand may have played a more significant role in Miller Creek's housing market.
The rental market in Miller Creek has shown inverse trends to homeownership. The percentage of renters decreased from 33% in 2013 to 23% in 2022. This decline in renters corresponds with an increase in average rent prices. In 2013, the average rent was $1,205, which rose to $1,352 by 2022, an increase of 12.2%. The relatively modest increase in rent prices compared to the significant rise in home prices suggests that renting may have become a more attractive option for some residents, despite the overall trend towards homeownership.
Recent data shows continued growth in the Miller Creek housing market. The average home price rose to $646,013 in 2023 and further increased to $669,286 in 2024, representing a 3.6% year-over-year growth. This steady appreciation occurred despite high interest rates of 5.02% in 2023 and 5.33% in 2024, indicating robust demand in the local housing market.
Predictive models suggest that average home prices in Miller Creek may continue to rise over the next five years, potentially reaching around $800,000 by 2029. Rent prices are also expected to increase, possibly surpassing $1,600 per month within the same timeframe. However, these projections are subject to various economic factors and local market conditions.
In conclusion, Miller Creek has experienced a significant shift towards homeownership over the past decade, accompanied by substantial increases in property values. The neighborhood has demonstrated resilience in maintaining high homeownership rates despite rising interest rates. While the renter population has decreased, rent prices have seen moderate growth. The continued appreciation of home values, even in the face of high interest rates, suggests a strong and desirable housing market in Miller Creek for the foreseeable future.
