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Rising Home Values and Shifting Ownership in Plains, Montana: A Decade of Housing Market Evolution
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
Plains, Montana, is a small city that has experienced significant demographic and housing market changes over the past decade. The city has seen fluctuations in homeownership rates, along with substantial increases in average home prices and average rent prices. These trends reflect broader economic shifts and changing population dynamics in the area.
The homeownership rate in Plains has shown a gradual decline over the years, while average home prices have experienced a substantial increase. In 2013, the homeownership rate was 75%, with an average home price of $158,223. By 2022, the homeownership rate had decreased to 68%, while the average home price had risen dramatically to $410,632. This inverse relationship suggests that as home prices increased, fewer residents were able to afford homeownership. The most significant jump in average home prices occurred between 2020 and 2022, with a 71% increase from $239,920 to $410,632.
Federal interest rates have played a role in homeownership trends in Plains. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. During this period, homeownership rates fluctuated between 68% and 75%. However, as interest rates began to rise more sharply in 2022 to 1.68%, the homeownership rate remained stable at 68%, possibly due to the offsetting effects of rising home prices and increased borrowing costs.
The renter population in Plains has generally increased as homeownership rates declined. In 2013, 25% of residents were renters, with an average rent of $681. By 2022, the renter percentage had increased to 32%, with the average rent rising to $769. This trend suggests that as home prices became less affordable, more residents turned to renting. However, the relationship between renter percentages and average rent prices is not always direct. For instance, in 2021, when the renter percentage peaked at 37%, the average rent was $685, lower than the previous year.
In 2023 and 2024, Plains's housing market showed signs of stabilization. The average home price in 2023 was $407,454, a slight decrease from 2022, and in 2024 it increased to $422,367. This indicates a more moderate growth rate compared to the rapid increases seen in previous years. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which may have contributed to the slower growth in home prices.
Looking ahead, predictive models suggest that average home prices in Plains may continue to increase, but at a more moderate pace. Over the next five years, average home prices could potentially reach around $475,000 to $500,000, assuming current economic conditions persist. Average rent prices are also expected to rise, potentially reaching $850 to $900 per month within the same timeframe.
In summary, Plains has experienced a notable shift in its housing market over the past decade. The declining homeownership rate, coupled with substantial increases in average home prices and rent, reflects changing economic conditions and population dynamics. The recent stabilization of home prices and high interest rates suggest a potential cooling of the market, but continued growth is expected in both home values and rental costs in the coming years.
