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Rising Home Values and Ownership in Glasgow, Montana: A Decade of Agricultural City's Housing Trends
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
Glasgow, Montana, is a small city with a population of 3,369 as of 2022, situated in an area of 1.4 square miles. Known for its rich Native American history and proximity to the Fort Peck Indian Reservation, Glasgow has experienced notable shifts in homeownership rates and housing prices over the past decade.
The city has seen a significant increase in homeownership rates, rising from 57% in 2013 to 67% in 2022. This trend coincides with fluctuations in average home prices, which have shown substantial growth in recent years. Average rent prices have also experienced an upward trajectory, albeit with some volatility.
Analyzing the relationship between homeownership rates and average home prices reveals an interesting trend. In 2016, when average home prices were $109,336, the homeownership rate was 64%. As average home prices increased to $175,850 in 2022, the homeownership rate rose to 67%. This suggests that rising home values did not deter homeownership in Glasgow, possibly indicating a strong local economy or increased desire for property investment.
The federal interest rate trends appear to have influenced homeownership rates in Glasgow. For instance, when interest rates were low at 0.08% in 2021, the homeownership rate was high at 68%. However, as interest rates rose to 1.68% in 2022, there was a slight decrease in homeownership to 67%. This aligns with the general trend that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in Glasgow have shown an inverse relationship to homeownership rates, decreasing from 43% in 2013 to 32% in 2022. Interestingly, average rent prices have increased significantly during this period, rising from $554 in 2013 to $754 in 2022. This trend suggests that despite rising rent costs, more residents are transitioning to homeownership, possibly due to the long-term financial benefits of owning property.
In 2023 and 2024, Glasgow's average home prices showed a slight decrease followed by a minor increase. The average home price in 2023 was $172,899, dropping from the 2022 figure, but then rose slightly to $173,894 in 2024. This recent stabilization in home prices occurs alongside higher federal interest rates, which stood at 5.02% in 2023 and increased to 5.33% in 2024.
Looking ahead, predictive models suggest that average home prices in Glasgow may continue to rise moderately over the next five years, potentially reaching around $190,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $850 per month within the same timeframe. These projections are based on historical trends and current economic indicators.
In summary, Glasgow has experienced a notable increase in homeownership rates despite rising home prices, suggesting a robust local housing market. The inverse relationship between homeownership and rental rates, coupled with increasing rent prices, indicates a preference for property ownership among residents. Recent stabilization in home prices and higher interest rates may influence future housing market dynamics in this small Montana city.
