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Rising Home Values and Ownership in Frazer, Montana: A Decade of Housing Market Fluctuations
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
Frazer, located in Montana, is a small community that has experienced notable fluctuations in its population and housing market over the past decade. The city has seen a general trend of increasing homeownership rates, accompanied by significant changes in average home prices and average rent prices.
From 2013 to 2022, Frazer witnessed a substantial increase in homeownership rates, rising from 62% to 70%. This upward trend in homeownership coincided with a significant surge in average home prices. In 2016, the average home price in Frazer was $236,314. By 2022, this figure had increased dramatically to $429,466, representing an 81.7% increase over six years. This correlation suggests that rising property values may have incentivized more residents to invest in homeownership, despite the potentially higher entry costs.
The federal interest rate trends appear to have played a role in the homeownership rates in Frazer. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable around 62-65%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates also increased, peaking at 73% in 2021 before slightly declining to 70% in 2022. This trend suggests that residents may have been motivated to purchase homes before interest rates potentially increased further.
Conversely, the percentage of renters in Frazer decreased from 38% in 2013 to 30% in 2022. Despite this decline in the renter population, average rent prices showed an overall upward trend. In 2013, the average rent was $475, which decreased to $357 in 2017 but then rose steadily to reach $522 in 2022. This 46.2% increase in average rent from 2017 to 2022 occurred despite the declining proportion of renters, possibly indicating a tightening rental market or improved housing quality.
In 2023 and 2024, Frazer experienced some shifts in its housing market. The average home price decreased from $429,466 in 2022 to $387,406 in 2023, a 9.8% decline. However, there was a slight recovery in 2024, with average home prices rising to $399,516, a 3.1% increase from the previous year. Notably, federal interest rates rose significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024, which may have influenced the housing market dynamics.
Looking ahead, based on the historical trends and current market conditions, we can project potential scenarios for the next five years. Average home prices in Frazer may continue to experience moderate growth, potentially reaching around $450,000 by 2029. Average rent prices could also continue their upward trajectory, possibly surpassing $600 by 2029. However, these projections assume relatively stable economic conditions and do not account for unforeseen market disruptions.
In summary, Frazer has demonstrated a clear trend towards increased homeownership, accompanied by substantial growth in average home prices. The rental market, while shrinking in terms of the proportion of renters, has seen rising average rents. These trends, influenced by factors such as federal interest rates and local market dynamics, paint a picture of a changing housing landscape in this Montana community.
