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North Elevation, Billings: Rising Home Values and Stable Ownership Rates
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
North Elevation, a neighborhood in Billings, Montana, has experienced significant changes in its real estate market over the past decade. This area has shown resilience in homeownership rates despite rising home prices and fluctuating interest rates. From 2013 to 2022, the homeownership rate remained steady at 53%, even as average home prices increased from $195,760 to $329,807.
The relationship between homeownership rates and average home prices in North Elevation reveals interesting patterns. Despite the substantial rise in home prices, the consistent homeownership rate suggests a strong desire among residents to own homes, even in the face of increasing costs. This stability persisted through various economic conditions, including periods of low and rising federal interest rates.
Federal interest rates have played a role in homeownership trends in North Elevation. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 0.38%. This period coincided with stable homeownership rates, suggesting that low interest rates may have helped maintain homeownership levels despite rising home prices. As interest rates began to rise more sharply in 2022 to 1.68%, the homeownership rate remained stable at 53%, indicating that other factors may have offset the potential negative impact of higher interest rates on homeownership.
Renter percentages and average rent prices in North Elevation have shown some correlation. In 2013, the renter percentage was 47%, with an average rent of $796. As the renter percentage increased to 54% in 2016, the average rent also rose to $879. However, by 2022, the renter percentage decreased slightly to 47%, while the average rent continued to climb, reaching $1,200. This suggests that factors beyond supply and demand, such as overall market conditions and housing quality improvements, may be influencing rent prices.
In 2023 and 2024, North Elevation saw continued growth in average home prices. The average home price reached $348,739 in 2023 and further increased to $357,490 in 2024. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homeownership rates and market dynamics in the neighborhood.
Looking ahead, predictive models suggest that average home prices in North Elevation will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by ongoing demand for rental properties and overall market appreciation. However, the rate of increase may moderate as the market adjusts to economic conditions and housing supply changes.
In summary, North Elevation has demonstrated resilience in homeownership rates despite rising home prices and fluctuating interest rates. The neighborhood has experienced consistent growth in both average home prices and rent prices over the past decade. Future trends indicate continued appreciation in the real estate market, with potential moderation due to economic factors and market dynamics.
