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Rising Home Values and Ownership in Zip Code 59474: Shelby, Montana's Resilient Housing Market
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 59474, located in Shelby, Montana, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area, characterized by its rural setting and small-town charm, has seen interesting dynamics in its real estate market. The ownership percentage in zip code 59474 has shown a general upward trend, increasing from 54% in 2017 to 64% in 2022. This rise in homeownership coincided with fluctuations in average home prices. In 2016, the average home price was $129,482, which dipped slightly to $126,202 in 2017 before steadily climbing to $161,316 by 2022. This represents a 24.5% increase in average home prices over six years, despite some initial volatility.
Federal interest rates have played a significant role in shaping homeownership trends in the area. The period from 2016 to 2022 saw interest rates fluctuate from 0.4% to 1.68%. The relatively low interest rates during this period likely contributed to the increased homeownership rates, as lower rates typically make mortgages more affordable and attractive to potential buyers. The jump in homeownership from 59% in 2020 to 64% in 2022 coincides with interest rates remaining below 2%, suggesting a strong correlation between low interest rates and higher homeownership rates in this zip code.
Conversely, the renter percentage in zip code 59474 has decreased from 46% in 2017 to 36% in 2022. Interestingly, average rent prices have shown significant volatility during this period. In 2013, the average rent was $879, which decreased to $555 by 2017. There was a slight increase to $592 in 2020, followed by a substantial jump to $765 in 2021, before dropping again to $591 in 2022. This volatility in rent prices, coupled with the overall decrease in the renter population, suggests a complex rental market influenced by various factors including local economic conditions and housing supply.
Looking at the most recent data, the average home price in zip code 59474 rose to $172,538 in 2023 and further increased to $176,341 in 2024. This represents a 9.3% increase from 2022 to 2024, indicating a continued upward trend in home values. Simultaneously, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends, potentially slowing down the rate of increase seen in recent years.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 59474 will continue to rise, albeit at a potentially slower rate due to higher interest rates. We project average home prices could reach approximately $200,000 by 2029. For rent prices, the forecast suggests a more stable trend with potential moderate increases, possibly reaching an average of around $650-$700 per month by 2029.
In summary, zip code 59474 has experienced a significant increase in homeownership rates, rising from 54% to 64% between 2017 and 2022, concurrent with a 27.8% increase in average home prices. The rental market has shown volatility, with decreasing renter percentages and fluctuating rent prices. Recent data indicates continued growth in home values, but higher interest rates may influence future market dynamics. These trends reflect a changing real estate landscape in this Montana community, with implications for both current and prospective residents.
