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Rising Home Values and High Ownership Rates in Montana's 59079 Zip Code: A Rural Real Estate Boom
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
The zip code 59079, encompassing Shepherd in Montana, presents an intriguing case study of homeownership and housing market dynamics in a rural setting. Over the past decade, this area has experienced significant fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
Homeownership rates in zip code 59079 have shown a notable upward trend, particularly in recent years. In 2013, the homeownership rate stood at 89%, and after some fluctuations, it reached an impressive 93% by 2022. This increase in homeownership coincided with a substantial rise in average home prices. In 2013, the average home price was $233,791, and it steadily climbed to $442,179 by 2022, representing an increase of nearly 89% over this period.
The relationship between federal interest rates and homeownership rates in this zip code appears to follow the general trend of lower interest rates encouraging higher homeownership. For instance, as interest rates remained relatively low between 2013 and 2021 (ranging from 0.08% to 2.16%), homeownership rates in the area generally increased. The most significant jump in homeownership occurred between 2019 and 2022, rising from 85% to 93%, despite a slight increase in interest rates from 0.38% in 2020 to 1.68% in 2022.
Conversely, the percentage of renters in zip code 59079 has decreased over time, dropping from 17% in 2017 to just 7% in 2022. Interestingly, average rent prices have not shown a consistent trend in relation to this decrease. Average rent peaked at $1,061 in 2015 when the renter percentage was 10%, then fluctuated before settling at $887 in 2022. This suggests that factors beyond supply and demand, such as local economic conditions or housing policies, may be influencing rent prices in this area.
Looking at the most recent data, the average home price in zip code 59079 continued to rise, reaching $459,055 in 2023 and $473,309 in 2024. This represents a further increase of 7% from 2022 to 2024. Notably, federal interest rates also increased significantly during this period, rising to 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, which typically discourage homebuying, the area has maintained its upward trend in home prices.
Applying predictive models to forecast 5-year trends, we can anticipate continued growth in average home prices in zip code 59079, albeit potentially at a slower rate due to the current higher interest rate environment. Average home prices could potentially reach around $550,000 by 2029 if the current trajectory continues. Rent prices, which have been more volatile, may stabilize or see modest increases, potentially reaching an average of $950-$1,000 per month in the next five years.
In summary, zip code 59079 has demonstrated a strong trend towards homeownership, with rates increasing to 93% by 2022. This has been accompanied by significant growth in average home prices, which have more than doubled since 2010. Despite recent increases in interest rates, home prices continue to rise, suggesting robust demand in this area. The rental market, while shrinking in terms of percentage, has shown more variability in pricing. These trends point to a housing market in zip code 59079 that strongly favors homeownership, with continued potential for property value appreciation in the coming years.
