Loading Content...
Rising Home Values and Ownership in Billings' Heights: A Decade of Growth
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 Heights neighborhood in Billings, Montana, has experienced significant changes in homeownership rates and property values over the past decade. This area has seen a steady increase in owner-occupied housing, coupled with rising average home prices and fluctuating average rent costs. From 2013 to 2022, the Heights neighborhood witnessed a notable increase in homeownership rates. The percentage of owner-occupied homes rose from 70% in 2013 to 77% in 2022, indicating a growing preference for homeownership in the area. This trend coincided with a substantial rise in average home prices. In 2013, the average home price in the Heights was $210,414, which steadily increased to $358,687 by 2022, representing a 70.5% increase over nine years.
The relationship between federal interest rates and homeownership rates in the Heights appears to follow established trends. As interest rates remained relatively low from 2013 to 2021, ranging from 0.08% to 2.16%, homeownership rates in the neighborhood increased. This aligns with the general principle that lower interest rates make home financing more accessible, encouraging more people to purchase homes. The significant jump in homeownership from 73% in 2020 to 77% in 2022 coincided with historically low interest rates in 2020 and 2021, at 0.38% and 0.08% respectively.
Conversely, as homeownership rates increased, the percentage of renters in the Heights decreased from 30% in 2013 to 23% in 2022. Despite this decline in the renter population, average rent prices showed an overall upward trend. The average rent increased from $968 in 2013 to $1,114 in 2022, a 15% increase. However, this trend was not linear, with some fluctuations observed. For instance, average rent peaked at $1,170 in 2021 before slightly decreasing in 2022. These changes in rent prices may be influenced by factors such as housing supply, local economic conditions, and the overall increase in property values in the area.
Looking at the most recent data, the average home price in the Heights continued to rise, reaching $379,494 in 2023 and $388,270 in 2024. This represents a 5.8% increase from 2022 to 2023 and a further 2.3% increase from 2023 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends in the neighborhood.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in the Heights will continue to rise, albeit at a potentially slower rate due to higher interest rates. By 2029, average home prices could reach approximately $450,000 to $475,000, assuming a moderate annual growth rate of 3-4%. Average rent prices are also expected to increase, potentially reaching $1,300 to $1,400 per month by 2029, based on historical trends and accounting for potential market adjustments.
In summary, the Heights neighborhood in Billings has demonstrated a strong trend towards increased homeownership and rising property values over the past decade. The area has seen a significant appreciation in average home prices, a steady increase in homeownership rates, and generally rising average rent prices, despite a decreasing renter population. Recent increases in federal interest rates may influence future homeownership trends, but the neighborhood's consistent growth suggests it will remain an attractive area for both homeowners and investors in the coming years.
