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Rising Home Values and Ownership in Zip Code 59248: A Decade of Growth in Rural Montana
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
Zip code 59248, located in Nashua, Montana, is a rural area characterized by its low population density of just 1 person per square mile. This sparsely populated region has experienced fluctuations in homeownership rates and housing prices over the past decade, reflecting the dynamic nature of its real estate market.
The homeownership rate in zip code 59248 has shown a generally increasing trend from 2013 to 2022. In 2013, the homeownership rate was 74%, which steadily rose to 80% by 2021 before slightly decreasing to 79% in 2022. This upward trend in homeownership coincided with a significant increase in average home prices. From 2016 to 2022, average home prices in the area rose from $168,416 to $290,418, representing a substantial 72.4% increase over six years.
The relationship between federal interest rates and homeownership rates in this zip code appears to follow the expected pattern. As interest rates remained low from 2013 to 2021, ranging from 0.08% to 2.16%, homeownership rates generally increased. This aligns with the principle that lower interest rates make mortgages more affordable, encouraging home buying. However, despite the sharp increase in interest rates to 1.68% in 2022, homeownership rates remained relatively stable at 79%, suggesting other local factors may also influence homeownership decisions in this area.
Renter percentages in zip code 59248 have shown an inverse relationship to homeownership rates, decreasing from 26% in 2013 to 21% in 2022. Interestingly, despite this decrease in the proportion of renters, average rent prices have increased significantly. In 2013, the average rent was $430, which rose to $701 by 2022, representing a 63% increase. This trend suggests that while fewer people are renting, those who do are paying considerably more, possibly due to limited rental inventory or improved quality of available rentals.
Looking at the most recent data, average home prices in zip code 59248 reached $269,768 in 2023 and further increased to $277,013 in 2024. This represents a 2.7% increase from 2023 to 2024, indicating a continued upward trend in home values. Concurrently, federal interest rates rose to 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and home prices in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 59248 will continue to rise, albeit at a more moderate pace. Based on the historical data and current economic conditions, we project that average home prices could reach approximately $320,000 by 2029. For rent prices, the upward trend is expected to persist, with average rents potentially reaching around $850 per month in the next five years.
In summary, zip code 59248 has experienced a notable increase in homeownership rates and a significant rise in both average home prices and rent prices over the past decade. The area's real estate market has shown resilience, with home values continuing to appreciate even in the face of rising interest rates. These trends suggest a strong demand for housing in this rural Montana community, likely driven by a combination of local economic factors and broader national housing market trends.
