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Rising Home Values and Shifting Ownership in Terry, Montana
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Terry, Montana: A Small Community with Fluctuating Housing Trends Terry, located in Montana, is a small community that has experienced fluctuating population and housing trends over the past decade. The city has seen shifts in homeownership rates, average home prices, and average rent prices, reflecting broader economic and demographic changes.
Homeownership Trends and Home Prices The homeownership rate in Terry showed a general upward trend from 2013 to 2016, peaking at 91% in 2015 and 2016. However, this trend reversed in subsequent years, with the ownership rate declining to 75% by 2022. Interestingly, this decline in homeownership coincided with a significant increase in average home prices. In 2016, the average home price was $97,157, and it rose to $126,613 by 2022, representing a 30.3% increase over six years.
Interest Rates and Homeownership The relationship between federal interest rates and homeownership rates in Terry appears to follow expected patterns. As interest rates remained low from 2013 to 2016, hovering between 0.09% and 0.4%, homeownership rates increased. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined. This trend aligns with the general economic principle that lower interest rates make homeownership more accessible due to reduced borrowing costs.
Rental Market Trends The renter percentage in Terry has shown an inverse relationship to homeownership rates, increasing from 7% in 2015 to 25% in 2022. This rise in renters coincided with a substantial increase in average rent prices. In 2013, the average rent was $487, which rose to $866 by 2022, marking a 77.8% increase over nine years. This sharp rise in rent prices occurred despite the relatively small population growth, suggesting other factors such as housing supply constraints or economic changes may have played a role.
Recent Housing Market Developments In 2023 and 2024, Terry saw further increases in average home prices, reaching $133,037 in 2023 and $139,211 in 2024. This represents a 5.2% and 4.6% year-over-year increase, respectively. Notably, federal interest rates also rose significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024, which could impact future homeownership trends.
Future Projections Looking ahead, predictive models suggest that average home prices in Terry may continue to rise over the next five years, potentially reaching around $160,000 by 2029 if current trends persist. Average rent prices are also projected to increase, potentially surpassing $1,000 per month within the same timeframe. However, these projections assume consistent economic conditions and do not account for potential market disruptions or policy changes.
Conclusion In summary, Terry has experienced a notable shift from high homeownership to increased renting over the past decade, accompanied by substantial increases in both home prices and rent. The inverse relationship between homeownership rates and interest rates, as well as the consistent upward trend in housing costs, highlight the changing dynamics of the local real estate market. These trends suggest a transforming housing landscape in Terry, with potential implications for affordability and community demographics in the coming years.
