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Rising Home Values and Ownership in South 39th Street, Missoula: A Decade of Change
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
South 39th Street in Missoula, Montana, has experienced significant changes in homeownership and housing prices over the past decade. This neighborhood, known for its mix of residential and commercial areas, has seen a notable increase in homeownership rates from 77% in 2013 to 86% in 2022. Concurrently, average home prices have more than doubled, rising from $207,056 in 2013 to $480,952 in 2022, representing a 132% increase over nine years.
The relationship between federal interest rates and homeownership rates in South 39th Street reveals an interesting pattern. Despite historically low interest rates from 2013 to 2021 (ranging from 0.08% to 1.83%), homeownership rates continued to climb. This suggests that factors beyond interest rates, such as local economic conditions and housing supply, played a significant role in driving homeownership in the area.
As homeownership increased, the percentage of renters in South 39th Street decreased from 23% in 2013 to 14% in 2022. Despite this decline in the renter population, average rent prices saw a substantial increase. In 2013, the average rent was $869 per month. By 2022, it had nearly doubled to $1,727, representing a 99% increase over nine years. This rise in rent prices, despite a smaller renter population, may indicate a shortage of rental properties or an increase in higher-end rental options in the area.
The most recent data shows that the average home price in South 39th Street continued to rise in 2023, reaching $489,614. In 2024, it further increased to $502,296. These increases occurred despite rising federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. This suggests a strong local housing market that has remained resilient in the face of higher borrowing costs.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in South 39th Street will continue to rise, albeit at a potentially slower rate due to higher interest rates. By 2029, average home prices could reach approximately $575,000 to $600,000. Average rent prices are also expected to increase, potentially reaching $2,000 to $2,200 per month by 2029, assuming current trends continue.
In summary, South 39th Street has experienced a significant shift towards homeownership over the past decade, accompanied by substantial increases in both home prices and rent. The neighborhood has shown resilience in its housing market, with prices continuing to rise even in the face of increasing interest rates. These trends suggest a strong local economy and high demand for housing in the area, which are likely to continue shaping the neighborhood's real estate landscape in the coming years.
