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Montreal, Wisconsin: Rising Home Values and Ownership Rates in a Small but Growing Community
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
Montreal, Wisconsin, is a small but growing community that has seen interesting shifts in its housing market over the past decade. The city has experienced fluctuations in homeownership rates, with a general trend towards increased owner-occupancy in recent years. Average home prices have shown steady growth, particularly since 2016, while average rent prices have also risen, albeit with some variability.
The homeownership rate in Montreal has experienced an upward trend, particularly in recent years. In 2013, the owner-occupied rate was 82%, which dipped to 78% in 2017 and remained stable until 2019. However, there was a significant increase from 2020 onwards, reaching 86% in 2022. This rise in homeownership coincides with an increase in average home prices. The average home price in 2016 was $80,498, which steadily increased to $113,472 by 2022, representing a 41% increase over six years. This trend suggests that despite rising prices, more residents were able to enter the housing market, possibly due to factors such as low interest rates or increased local economic opportunities.
The relationship between federal interest rates and homeownership rates in Montreal aligns with well-established trends. From 2016 to 2022, interest rates remained relatively low, ranging from 0.4% to 1.68%. This period of low interest rates corresponds with the increase in homeownership from 80% in 2016 to 86% in 2022. Lower interest rates typically make mortgages more affordable, encouraging more people to buy homes.
The renter percentage in Montreal has shown an inverse relationship to homeownership rates. In 2013, the renter-occupied rate was 18%, which increased slightly to 22% in 2017 and remained stable until 2019. However, it decreased to 14% by 2022. Average rent prices have generally increased over this period, from $502 in 2013 to $737 in 2022, a 47% increase. Despite the rising rent prices, the declining renter percentage suggests that more residents were transitioning to homeownership, possibly due to the factors mentioned earlier.
In 2023 and 2024, the housing market in Montreal continued to evolve. The average home price reached $115,813 in 2023, the highest point in the available data. However, there was a notable decrease to $105,686 in 2024. This decline coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates likely contributed to the cooling of home prices.
Looking ahead, based on the observed trends and current economic conditions, we can forecast some potential scenarios for the next five years. Average home prices may experience a period of stabilization or slight decline in the short term due to higher interest rates. However, if the city's population continues to grow (as evidenced by the increase from 629 in 2022 to 620 in 2021), there could be renewed upward pressure on prices in the medium term. Average rent prices are likely to continue their upward trajectory, albeit at a more moderate pace, potentially reaching around $850-$900 by 2029.
In summary, Montreal has demonstrated a strong trend towards homeownership in recent years, with rising home values and increasing owner-occupancy rates. The rental market has seen declining occupancy despite rising rents. The recent increase in interest rates has begun to impact the housing market, leading to a cooling of home prices in 2024. These trends reflect the dynamic nature of the local housing market and its responsiveness to broader economic factors.
