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Rising Home Values and Stable Ownership in Zip Code 59634: Clancy's Resilient Housing Market
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 59634, located in Clancy, Montana, is a predominantly rural area covering 356.36 square miles. This region has experienced notable shifts in homeownership rates and property values over the past decade, with a strong trend towards owner-occupied housing and significant increases in average home prices.
The homeownership rate in zip code 59634 has shown a steady increase from 2013 to 2022. In 2013, the percentage of owner-occupied homes was 91%, which rose to 93% by 2018 and remained consistently high at 92% through 2022. This upward trend in homeownership coincided with a substantial rise in average home prices. The average home price in 2013 was $276,847, which more than doubled to $583,946 by 2022, representing a 111% increase over nine years.
The relationship between federal interest rates and homeownership rates in this area is noteworthy. Despite fluctuations in interest rates, homeownership remained high, suggesting other factors may have influenced the local housing market. For instance, even as interest rates rose from 0.11% in 2013 to 1.68% in 2022, the homeownership rate increased from 91% to 92%, indicating a strong local preference for owning rather than renting.
The renter percentage in zip code 59634 has remained relatively low, decreasing from 9% in 2013 to 8% in 2022. Despite this decline, average rent prices have shown significant volatility. In 2013, the average rent was $1,373, which decreased to $1,113 in 2016 before rising sharply to $1,741 in 2019. By 2022, the average rent stood at $1,722, representing a 25% increase from 2013. This fluctuation in rent prices, coupled with the area's growing population (from 4,825 in 2013 to 5,298 in 2022), suggests a competitive rental market despite the small proportion of renters.
In 2023 and 2024, the housing market in zip code 59634 continued to evolve. The average home price reached $593,884 in 2023 and further increased to $618,551 in 2024, marking a 5.9% year-over-year growth. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, potentially impacting mortgage affordability and housing market dynamics.
Looking ahead, predictive models suggest a continued upward trajectory for both home prices and rent in zip code 59634 over the next five years. Average home prices are projected to increase by approximately 4-6% annually, potentially reaching around $750,000 by 2029. Average rent prices are expected to follow a similar trend, with estimated annual increases of 3-5%, potentially surpassing $2,000 per month by 2029.
In summary, zip code 59634 has demonstrated a robust housing market characterized by high homeownership rates and steadily increasing property values. The area has maintained a strong preference for owner-occupied housing despite rising home prices and interest rates. The rental market, while small, has shown resilience with increasing average rents. These trends, coupled with the area's population growth, suggest a continued strong demand for housing in this Montana community.
