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Rising Home Values and Shifting Ownership in Zip Code 59602: A Decade of Change in Helena Valley Northeast, Montana
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 59602, located in Helena Valley Northeast, Montana, has experienced significant changes in population, homeownership rates, and housing prices over the past decade. This area has seen steady growth and evolving real estate dynamics, making it an interesting case study for housing trends in Montana.
The homeownership rate in zip code 59602 has shown a slight decline from 2013 to 2022, while average home prices have increased substantially. In 2013, the homeownership rate was 87%, with an average home price of $229,410. By 2022, the homeownership rate had decreased to 82%, while the average home price had more than doubled to $480,681. This inverse relationship suggests that rising home prices may have made homeownership less accessible for some residents.
Federal interest rates have played a role in shaping homeownership trends in this area. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.4%), the homeownership rate remained relatively stable at around 83-84%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate showed a slight decline to 82%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The renter population in zip code 59602 has seen a modest increase, rising from 13% in 2013 to 18% in 2022. Interestingly, average rent prices have fluctuated during this period. In 2013, the average rent was $1,224, peaking at $1,268 in 2014 before declining to $1,094 in 2022. This fluctuation in rent prices, coupled with the increasing population (from 22,268 in 2013 to 26,962 in 2022), suggests a complex rental market influenced by factors such as housing supply and local economic conditions.
Looking at the most recent data, the average home price in zip code 59602 rose to $487,363 in 2023 and further increased to $506,572 in 2024. This continued upward trend in home prices occurs against a backdrop of rising interest rates, with the federal interest rate reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact affordability and potentially influence future homeownership rates in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 59602 will continue to rise, albeit at a potentially slower rate due to the current high interest rate environment. We project that by 2029, the average home price could reach approximately $600,000 to $650,000. For rent prices, we expect a moderate increase, with average rents potentially reaching $1,300 to $1,400 per month by 2029, assuming continued population growth and economic stability in the area.
In summary, zip code 59602 has experienced a notable increase in housing prices over the past decade, accompanied by a slight decrease in homeownership rates. The rental market has shown more volatility in pricing despite an increase in the renter population. With continuing population growth and rising home prices, this area is likely to see ongoing changes in its housing market dynamics, potentially favoring a shift towards more rental occupancy if homeownership becomes less affordable for a growing segment of the population.
