Loading Content...
Rising Home Values and Shifting Ownership in Zip Code 59916: A Rural Montana Housing Study
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 59916, located in Snowslip, Montana, presents an interesting case study in rural housing dynamics. This expansive area, covering 1,024.41 square miles, has experienced significant fluctuations in homeownership rates and property values over the past decade. The area has generally maintained a high rate of owner-occupied housing, though this has declined in recent years, while average home prices have shown a dramatic increase.
The homeownership rate in zip code 59916 peaked at 85% in 2016 and 2017, coinciding with a period of steady growth in average home prices. From 2013 to 2017, average home prices rose from $142,118 to $198,843, an increase of approximately 40%. However, as home prices continued to climb, the percentage of owner-occupied housing began to decline. By 2022, the homeownership rate had fallen to 72%, while average home prices reached $408,336, nearly tripling from their 2013 levels.
Federal interest rates appear to have played a role in homeownership trends in this area. The period of highest homeownership (2014-2017) coincided with relatively low federal interest rates, ranging from 0.09% to 1%. As interest rates began to rise more sharply from 2018 onwards, reaching 1.68% in 2022, the homeownership rate declined. This trend aligns with the general principle that lower interest rates tend to encourage homeownership by making mortgages more affordable.
The renter population in zip code 59916 has shown an inverse relationship to homeownership trends. The percentage of renters increased from 15% in 2017 to 28% in 2022. Interestingly, average rent prices have not shown a consistent upward trend during this period. Average rent peaked at $968 in 2017 before declining to $651 in 2022. This decrease in average rent despite an increase in the renter population could be attributed to various factors, including changes in housing stock or economic conditions specific to the area.
In 2023 and 2024, the housing market in zip code 59916 showed signs of stabilization. Average home prices slightly decreased from the 2022 peak of $408,336 to $389,070 in 2023, before rebounding to $400,675 in 2024. This occurred against a backdrop of significantly higher federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher rates likely contributed to the moderation in home prices.
Looking ahead, based on the observed trends and current economic conditions, we can project that average home prices in zip code 59916 may continue to experience moderate growth over the next five years, albeit at a slower pace than seen in the 2013-2022 period. Average rent prices, which have shown volatility, may stabilize or see slight increases as the renter population potentially grows. However, much will depend on broader economic factors, including interest rates and local economic conditions.
In summary, zip code 59916 has experienced a shift from very high homeownership rates to a more balanced mix of owners and renters, accompanied by substantial increases in average home prices. The area has shown resilience in its housing market, with recent data suggesting a period of stabilization following rapid growth. The interplay between federal interest rates, homeownership rates, and property values in this rural Montana community provides a compelling illustration of how national economic factors can influence local housing markets.
