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Rising Home Values and High Ownership Rates: Rexford, Montana's Unique Housing Market
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
Rexford, Montana, is a small community nestled in Lincoln County, known for its scenic beauty and proximity to the Kootenai National Forest. Over the past decade, this town has experienced significant fluctuations in homeownership rates and average home prices, reflecting the dynamic nature of its real estate market.
The homeownership rate in Rexford has shown a general upward trend, with some variations. In 2013, the homeownership rate was at 100%, which gradually decreased to 84% in 2018. However, it rebounded strongly, reaching 99% in 2021 before slightly declining to 93% in 2022. This high rate of homeownership indicates a strong preference for owning rather than renting among Rexford's residents. Concurrently, average home prices have seen a steady increase. In 2010, the average home price was $207,204, which more than doubled to $474,155 by 2022, representing a significant appreciation in property values over this period.
The relationship between federal interest rates and homeownership rates in Rexford presents an interesting case. Despite the national trend where lower interest rates typically encourage homeownership, Rexford's homeownership rates remained high even as interest rates fluctuated. For instance, when interest rates were at a low of 0.08% in 2021, Rexford's homeownership rate peaked at 99%. However, the town maintained a high 93% homeownership rate in 2022 when interest rates rose to 1.68%, suggesting that local factors may have a stronger influence on homeownership than national interest rate trends in this small community.
The rental market in Rexford has been notably small. Until 2020, the percentage of renters was not significant enough to be reported in the data. In 2021, the renter-occupied rate was just 1%, increasing slightly to 7% in 2022. This limited rental market aligns with the town's high homeownership rates. Unfortunately, specific average rent prices are not available for analysis, but the low percentage of renters suggests a limited rental market in the town.
Looking at the most recent data, the average home price in Rexford continued to rise, reaching $484,644 in 2023 and $512,057 in 2024. This represents a 2.2% increase from 2022 to 2023 and a further 5.7% increase from 2023 to 2024. Interestingly, these increases occurred despite rising interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. This suggests that local demand for housing in Rexford remains strong, potentially driven by factors such as limited housing supply or the town's desirable location.
Applying predictive models to forecast 5-year trends, it's anticipated that average home prices in Rexford will continue to rise, albeit at a potentially slower rate than the sharp increases seen in recent years. Based on the historical data and current trends, average home prices could potentially reach around $600,000 by 2029. The rental market is expected to remain limited, but may see a slight increase in the percentage of renters if housing affordability becomes a concern for some residents.
In summary, Rexford's real estate market is characterized by exceptionally high homeownership rates and steadily increasing average home prices. The town has shown resilience in maintaining high homeownership even in the face of rising interest rates, suggesting strong local preferences for owning homes. The limited rental market and continuous appreciation of home values indicate a robust demand for housing in this small Montana community, likely driven by its attractive location and lifestyle offerings.
