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Rising Home Values and Ownership Trends in Zip Code 59477: A Rural Montana Analysis
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 59477, located in Simms, Montana, is a small rural area characterized by its low population density and fluctuating demographics. Over the past decade, this area has experienced notable shifts in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics. The homeownership rate in zip code 59477 has shown some variability but has generally remained high. In 2013, the ownership rate was 82%, which increased to 87% by 2017, indicating a strong preference for homeownership in the area. However, there was a slight decline to 77% by 2022. This trend coincides with changes in average home prices. From 2014 to 2022, average home prices in the area increased significantly, rising from $157,324 to $306,910, representing a 95% increase over eight years.
Federal interest rates have played a role in homeownership trends. The period from 2010 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. This coincided with the highest homeownership rates in the zip code, peaking at 87% in 2017. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, there was a slight decline in homeownership rates to 77%, suggesting that higher borrowing costs may have impacted some residents' ability or willingness to purchase homes.
Renter percentages in zip code 59477 have fluctuated inversely to homeownership rates, ranging from 13% to 20% between 2013 and 2022. Average rent prices have shown a steady increase over this period, rising from $518 in 2013 to $735 in 2022, a 42% increase. This trend occurred despite a declining population, which fell from 50 residents in 2013 to 36 in 2022, indicating that rental demand remained relatively strong even as the overall population decreased.
In 2023 and 2024, average home prices in zip code 59477 continued to rise, reaching $316,138 in 2023 and $330,326 in 2024. This represents a 7.6% increase from 2022 to 2024. Concurrently, federal interest rates have increased significantly, reaching 5.02% in 2023 and 5.33% in 2024, which are the highest rates since 2007. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Looking ahead, based on the observed trends, we can forecast that average home prices in zip code 59477 will likely continue to appreciate, albeit at a potentially slower rate due to higher interest rates. Projecting the current trajectory, average home prices could reach approximately $375,000 to $400,000 by 2029. Average rent prices are also expected to increase, potentially reaching $850 to $900 per month in the next five years if current trends persist.
In summary, zip code 59477 has experienced substantial growth in both home values and rent prices over the past decade, despite a declining population. The area maintains a high rate of homeownership, although recent increases in interest rates and housing costs may challenge this trend. The interplay between housing prices, rental rates, and demographic shifts will likely continue to shape the real estate landscape of this Montana community in the coming years.
