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Rising Home Values and Ownership Trends in Zip Code 59538: Malta's Rural 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
The zip code 59538, encompassing Malta, Montana, presents an interesting case study in homeownership and housing market dynamics. This rural area, with a population density of just 1 person per square mile, has experienced notable shifts in ownership rates and housing prices over the past decade. Homeownership in Malta has shown a general upward trend, with some fluctuations. In 2013, the ownership rate stood at 77%, dipping to 70% in 2016 before climbing to a peak of 82% in 2020. This rise in homeownership coincided with a significant increase in average home prices. From 2016 to 2022, average home prices in the area rose from $133,149 to $246,889, representing an impressive 85.4% increase over six years. This trend suggests that despite rising prices, local residents were increasingly able or willing to purchase homes.
The relationship between federal interest rates and homeownership rates in Malta doesn't always follow the expected pattern. While interest rates remained low from 2013 to 2015 (around 0.1%), homeownership actually decreased slightly from 77% to 72%. However, as interest rates began to rise from 2016 onwards, homeownership rates in the area also increased, reaching 82% by 2020 when the federal interest rate was 0.38%. This suggests that local factors may have a stronger influence on homeownership than national interest rates in this particular market.
Renter percentages in Malta have generally mirrored the inverse of homeownership trends. The proportion of renters increased from 23% in 2013 to a peak of 30% in 2016, before declining to 18% in 2020. Interestingly, average rent prices have shown a steady increase despite these fluctuations in renter percentages. Average rent rose from $470 in 2013 to $544 in 2018, an increase of 15.7%. However, there was a slight decrease to $499 in 2021 before rising again to $532 in 2022. This overall upward trend in rent prices, even as the percentage of renters decreased, could indicate a tightening rental market or improved quality of rental properties.
In 2023 and 2024, the housing market in Malta continued its upward trajectory. The average home price reached $251,447 in 2023 and further increased to $267,585 in 2024, representing a 6.4% year-over-year growth. This growth occurred despite a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, levels not seen since before the 2008 financial crisis.
Looking ahead, predictive models suggest that the upward trend in both home prices and rent is likely to continue over the next five years. Average home prices could potentially reach around $320,000 by 2029, assuming a similar growth rate to recent years. Rent prices may see more moderate increases, potentially reaching an average of around $600 per month in the same timeframe.
In summary, Malta has experienced a strong trend towards homeownership, with rates rising to 79% by 2022 despite significant increases in home prices. The rental market, while shrinking in terms of percentage of occupants, has seen steady increases in average rent. These trends, coupled with the area's low population density and recent home price growth, paint a picture of a housing market that remains robust despite broader economic challenges.
