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Rising Home Values and Ownership in Broadus, Montana: A Decade of Housing Market Transformation
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Broadus, a small town in Montana, has experienced significant changes in its housing market over the past decade. The city has seen a notable shift towards homeownership, with average home prices steadily increasing. This trend, coupled with fluctuations in average rent prices, has reshaped the local real estate landscape.
The homeownership rate in Broadus has shown a strong upward trend, rising from 65% in 2013 to 81% in 2022. This increase in homeownership coincides with a substantial rise in average home prices. In 2016, the average home price was $127,893, which climbed to $250,669 by 2022, representing a 96% increase over six years. This correlation suggests that despite rising prices, more residents were able to enter the housing market, possibly due to favorable economic conditions or increased local prosperity.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period of low interest rates coincided with the steady increase in homeownership in Broadus, from 65% to 82%. Lower interest rates typically make mortgages more affordable, encouraging home buying. The slight dip in homeownership to 81% in 2022 occurred as interest rates began to rise more sharply to 1.68%.
As homeownership increased, the percentage of renters in Broadus decreased from 34% in 2013 to 19% in 2022. Interestingly, despite the declining renter population, average rent prices showed an overall upward trend. The average rent rose from $462 in 2013 to $633 in 2022, a 37% increase. This trend suggests that even as fewer people rented, the demand for rental properties remained strong enough to drive up prices, possibly due to a shortage of available rental units or an increase in the quality of rental properties.
In 2023 and 2024, Broadus experienced further increases in average home prices, reaching $259,646 in 2023 and $271,763 in 2024. This continued upward trajectory occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homeownership rates and home price growth.
Looking ahead, predictive models suggest that average home prices in Broadus may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by ongoing demand and the overall trend of rising housing costs. However, the rate of increase for both home prices and rents may moderate compared to the rapid growth seen in recent years.
In summary, Broadus has witnessed a significant shift towards homeownership, accompanied by substantial increases in both average home prices and rent prices. The interplay between federal interest rates, homeownership rates, and housing costs has shaped a dynamic real estate market in this Montana town. As the market continues to evolve, balancing affordability with growth will likely be a key challenge for the community.
