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Rising Home Values and Ownership in Zip Code 59825: Clinton, Montana's Rural 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
Zip code 59825, located in Clinton, Montana, has experienced significant fluctuations in homeownership rates and housing prices over the past decade. This rural area has seen a general trend of increasing homeownership, rising average home prices, and varying average rent costs, reflecting the dynamic nature of its real estate market.
The ownership percentage in zip code 59825 has shown a notable upward trend, increasing from 72% in 2013 to 81% in 2022. This rise in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $216,723, which steadily climbed to $518,390 by 2022, representing a remarkable 139% increase over nine years. This trend suggests a strong correlation between rising home values and increasing homeownership rates in the area.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 59825. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%, which likely contributed to the initial increase in homeownership from 72% to 73%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership continued to increase, reaching 80% by 2019. This suggests that other local factors, such as employment opportunities or lifestyle preferences, may have outweighed the impact of rising interest rates on homeownership decisions in this area.
The renter percentage in zip code 59825 has inversely mirrored the homeownership trend, decreasing from 27% in 2013 to 19% in 2022. Interestingly, despite this decline in the renter population, average rent prices have shown an overall upward trend. The average rent increased from $948 in 2013 to $1,148 in 2022, a 21% rise. This increase in rent prices, despite a shrinking renter pool, could be attributed to factors such as improving housing quality or increased demand for the limited rental properties available in the area.
In 2023 and 2024, the average home prices in zip code 59825 experienced a slight dip followed by a recovery. The average home price decreased to $501,721 in 2023 but rebounded to $518,528 in 2024. This recent trend coincides with higher federal interest rates of 5.02% in 2023 and 5.33% in 2024, which may have initially cooled the market before other factors drove prices back up.
Looking ahead, based on historical trends and current market conditions, we can forecast the following 5-year trends for zip code 59825: Average home prices are likely to continue their upward trajectory, potentially reaching around $600,000 by 2029, assuming a moderate annual growth rate of 3-4%. Average rent prices may continue to increase, albeit at a slower pace than home prices, potentially reaching approximately $1,300-$1,400 per month by 2029.
In summary, zip code 59825 has demonstrated a strong trend towards increased homeownership and rising property values over the past decade. Despite fluctuations in federal interest rates, the area has maintained a robust housing market with steadily increasing average home prices. The rental market, while shrinking in terms of population, has seen consistent growth in average rent prices. These trends, combined with recent market resilience in the face of higher interest rates, suggest a continuing strong and potentially growing real estate market in this Montana ZIP code for the foreseeable future.
