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Rising Home Values and Low Ownership in North Park, Billings: A Renter-Dominated Urban Neighborhood
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 Park, located in Billings, Montana, is a vibrant urban neighborhood characterized by a predominantly renter-occupied housing market. Over the past decade, this area has experienced notable fluctuations in population density, homeownership rates, and housing prices. The neighborhood has seen a general trend of increasing average home prices and average rent, while homeownership rates have remained relatively low, hovering around 25%.
The relationship between homeownership percentages and average home prices in North Park reveals an interesting dynamic. Despite the steady increase in average home prices from $131,749 in 2010 to $230,644 in 2022, homeownership rates have not shown a corresponding upward trend. In fact, the percentage of owner-occupied homes decreased slightly from 27% in 2013 to 23% in 2022. This suggests that rising home prices may be outpacing local residents' ability to purchase homes, potentially contributing to the persistently high renter population.
Federal interest rates have played a role in shaping homeownership trends in North Park. The period from 2010 to 2021 saw historically low interest rates, ranging from 0.08% to 2.16%. Despite these favorable borrowing conditions, homeownership rates in North Park remained relatively stable, fluctuating between 22% and 27%. This indicates that other factors, such as local economic conditions or housing supply, may have a more significant impact on homeownership in this neighborhood than interest rates alone.
The renter population in North Park has consistently comprised the majority of residents, with the percentage of renter-occupied units ranging from 73% to 78% between 2013 and 2022. During this period, average rent prices increased substantially, rising from $573 in 2013 to $849 in 2022, representing a 48% increase. This upward trend in rent prices occurred alongside fluctuations in the neighborhood's population, which peaked at 6,123 in 2019 before declining to 5,581 in 2022. The high renter percentage and rising rent prices suggest a strong demand for rental properties in the area, possibly driven by factors such as job market conditions or the neighborhood's desirability.
In 2023 and 2024, North Park's housing market continued its upward trajectory. The average home price reached $247,542 in 2023 and further increased to $253,061 in 2024, representing a 9.7% rise over two years. Concurrently, federal interest rates climbed significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homebuying decisions in the neighborhood.
Looking ahead, predictive models suggest that the upward trend in both average home prices and average rent is likely to continue over the next five years. Based on historical data and current market conditions, average home prices in North Park could potentially reach around $300,000 by 2029. Similarly, average rent prices may approach or exceed $1,000 per month within the same timeframe, assuming the current rate of increase persists.
In summary, North Park exhibits a housing market characterized by steadily increasing property values and rent prices, coupled with a persistently high renter population. The neighborhood's relatively low homeownership rate, despite periods of low interest rates, suggests that factors beyond financing costs are influencing housing choices. As property values continue to rise, it will be crucial to monitor how these trends impact the neighborhood's demographic composition and overall affordability in the coming years.
