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Rising Home Values and Stable Ownership: Analyzing Zip Code 59487 in Vaughn, 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 59487, located in Vaughn, Montana, presents an intriguing landscape of homeownership and rental trends. This rural area has experienced fluctuations in its population and housing market over the past decade. The overall trend shows a slight decrease in homeownership, accompanied by significant increases in average home prices and average rent prices.
The homeownership rate in zip code 59487 has shown a slight decline from 85% in 2013 to 81% in 2022. During this same period, average home prices have seen a substantial increase. In 2013, the average home price was $162,722, which rose steadily to $321,362 by 2022, representing a remarkable 97.5% increase over nine years. This trend suggests that while homeownership rates have slightly decreased, the value of owned properties has significantly appreciated.
Federal interest rates have played a role in shaping homeownership trends in the area. In 2013, when homeownership was at 85%, the federal interest rate was 0.11%. As interest rates remained low through 2020 (0.38%), homeownership rates stayed relatively stable. However, as interest rates began to rise in 2021 and 2022, reaching 1.68% by the end of 2022, we see a slight dip in homeownership to 81%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options.
The renter population in zip code 59487 has shown a slight increase from 15% in 2013 to 19% in 2022. Correspondingly, average rent prices have also risen significantly. In 2013, the average rent was $505, which increased to $762 by 2022, representing a 50.9% increase. This trend indicates that as the renter population grew, so did the cost of renting in the area. It's worth noting that the population decreased from 837 in 2013 to 738 in 2022, which may have influenced the rental market dynamics.
Looking at the most recent data, the average home price in 2023 was $338,862, showing a continued upward trend from 2022. In 2024, the average home price further increased to $357,645. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 59487 will continue to rise, potentially reaching around $450,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $900 per month within the same timeframe. These projections are based on the historical growth rates observed in the data.
In summary, zip code 59487 has experienced a slight decrease in homeownership rates coupled with significant increases in both average home prices and average rent prices over the past decade. The recent sharp rise in federal interest rates may further impact homeownership trends and housing affordability in the coming years. Despite a declining population, the area has seen substantial appreciation in property values, indicating a robust local housing market.
