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Rising Average Home Values and Ownership Trends in Zip Code 59427: A Rural Montana Case Study
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
Santa Rita, located in zip code 59427 in Montana, presents an interesting case study of homeownership and rental trends over the past decade. This rural area has experienced fluctuations in both population and housing dynamics, with notable shifts in ownership percentages and housing costs.
The homeownership rate in Santa Rita has shown considerable variation between 2013 and 2022. In 2013, the area had a 70% homeownership rate, which decreased to 62% by 2019. However, there was a significant rebound to 69% by 2022. This fluctuation in homeownership rates coincides with changes in average home prices. The average home price in 2016 was $108,053, which declined to $100,296 by 2019. This decrease in home prices may have contributed to the drop in homeownership during this period. However, from 2020 onwards, there was a sharp increase in average home prices, reaching $147,782 in 2022, which aligns with the recovery in homeownership rates.
Federal interest rates have played a role in shaping homeownership trends in Santa Rita. The period from 2013 to 2015 saw historically low interest rates, ranging from 0.09% to 0.13%. This coincided with relatively stable homeownership rates around 64-70%. As interest rates began to rise from 2016 onwards, reaching 2.16% in 2019, we observed a decline in homeownership to 62%. The subsequent drop in interest rates to 0.08% in 2021 correlates with a significant increase in homeownership to 76%, the highest in the observed period.
Renter percentages and average rent prices in Santa Rita have shown some interesting trends. The renter-occupied percentage increased from 30% in 2013 to 38% in 2019, before dropping back to 30% in 2022. Average rent prices have generally increased over this period, rising from $503 in 2013 to $636 in 2022, with some fluctuations in between. The peak average rent of $747 was observed in 2021, coinciding with the lowest renter-occupied percentage of 24%, suggesting a possible relationship between higher rents and lower rental occupancy.
In 2023 and 2024, Santa Rita experienced a continued upward trend in average home prices. The average home price reached $167,295 in 2023 and further increased to $172,841 in 2024. This represents a significant 17% increase from 2022 to 2024. Concurrently, federal interest rates rose sharply to 5.02% in 2023 and 5.33% in 2024, the highest levels since 2007. These high interest rates could potentially impact future homeownership rates and housing market dynamics in the area.
Looking ahead, based on the observed trends and current economic conditions, we can forecast some potential 5-year trends for Santa Rita. Average home prices are likely to continue their upward trajectory, potentially reaching around $200,000 by 2029. However, the rate of increase may slow down due to the high interest rates. Average rent prices are also expected to rise, potentially reaching $800-$850 by 2029, assuming a continued correlation with home prices and inflation.
In summary, Santa Rita has experienced significant fluctuations in homeownership rates, closely tied to changes in average home prices and federal interest rates. The area has seen a general trend of increasing home values and rent prices, with recent years showing particularly strong growth. The interplay between these factors will continue to shape the housing market in this Montana community in the coming years.
