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Rising Home Values and Changing Ownership in Central-Terry, Billings
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
The Central-Terry neighborhood in Billings, Montana, has experienced significant changes in its residential landscape over the past decade. This urban area has seen fluctuating homeownership rates and evolving property values, reflecting broader economic trends and local market conditions. The housing market in Central-Terry has demonstrated remarkable growth and resilience despite various economic factors.
Homeownership rates in Central-Terry have shown notable variability from 2013 to 2022. In 2013, the neighborhood had an equal distribution of owners and renters at 50% each. Ownership peaked at 55% in 2018 but subsequently declined to 47% by 2022. This shift coincided with substantial growth in average home prices, which increased from $156,763 in 2010 to $287,019 in 2022, representing an impressive 83% increase over 12 years.
The relationship between federal interest rates and homeownership in Central-Terry presents an intriguing case study. Despite historically low interest rates from 2013 to 2016, hovering around 0.1%, homeownership rates remained relatively stable, only increasing slightly from 50% to 51%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership paradoxically increased to 55% in 2017 and 2018 before declining to 47% by 2022. This suggests that local factors may have played a more significant role in homeownership trends than national interest rates alone.
Renter percentages in Central-Terry have generally mirrored the inverse of homeownership rates, rising from 45% in 2017 to 53% in 2022. During this period, average rent prices experienced notable fluctuations. Starting at $756 in 2013, rents peaked at $916 in 2021 before decreasing to $783 in 2022. The population of Central-Terry has also seen changes, declining from a high of 12,556 in 2012 to 10,598 in 2022, which may have influenced rental market dynamics.
In 2023 and 2024, the Central-Terry neighborhood continued to see growth in average home prices. The average home price reached $304,941 in 2023 and further increased to $312,943 in 2024, representing a 9% rise over two years. This growth occurred despite federal interest rates climbing to 5.02% in 2023 and 5.33% in 2024, indicating strong local demand for housing even in a higher interest rate environment.
Looking ahead, predictive models suggest that average home prices in Central-Terry may continue to rise over the next five years, potentially reaching around $350,000 by 2029 if current trends persist. Average rent prices are also projected to increase, possibly surpassing $1,000 per month within the same timeframe, assuming steady economic growth and continued demand for housing in the area.
In summary, the Central-Terry neighborhood has demonstrated resilience and growth in its housing market, with substantial increases in average home prices despite fluctuations in homeownership rates. The area has weathered changes in federal interest rates and population shifts, maintaining a dynamic balance between owner-occupied and rental properties. As the neighborhood continues to evolve, it presents opportunities for both homeowners and renters, with the potential for further appreciation in property values and rental rates in the coming years.
