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Rising Home Values and Stable Ownership: Lewistown, Montana's Real Estate Trends
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
Lewistown, Montana, is a small city located in the heart of the state, known for its rich history and scenic landscapes. Over the past decade, Lewistown has experienced fluctuations in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics. The city has generally maintained a high rate of homeownership, with average home prices showing a significant upward trajectory, particularly in recent years.
Homeownership rates in Lewistown have remained relatively stable, hovering around 70% throughout most of the observed period. In 2013, the homeownership rate stood at 71%, gradually decreasing to 65% by 2017, before rebounding to 67% in 2022. This slight decline in homeownership coincided with a substantial increase in average home prices. From 2016 to 2022, average home prices in Lewistown rose from $147,638 to $246,325, representing a remarkable 66.8% increase over six years.
The relationship between federal interest rates and homeownership rates in Lewistown follows a well-established trend. As interest rates remained low between 2013 and 2016, hovering around 0.1% to 0.4%, homeownership rates were relatively stable. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, there was a slight downward pressure on homeownership rates. This aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in Lewistown have shown a slight upward trend, increasing from 28% in 2013 to 33% in 2022. This increase in the renter population coincided with fluctuations in average rent prices. The average rent in Lewistown rose from $772 in 2013 to a peak of $900 in 2018, before declining to $731 in 2022. Despite the overall increase in the renter population, the recent decrease in average rent prices suggests a complex interplay of factors, possibly including changes in housing supply or local economic conditions.
In 2023 and 2024, Lewistown's housing market continued its upward trajectory. The average home price in 2023 reached $251,860, further climbing to $268,052 in 2024. This represents a 7.6% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends and housing affordability in the city.
Looking ahead, predictive models suggest a continued increase in both average home prices and rent prices over the next five years. Average home prices are projected to maintain their upward trend, potentially reaching around $300,000 by 2029. Average rent prices, which have shown more volatility, are expected to stabilize and gradually increase, possibly surpassing $900 per month within the same timeframe.
In summary, Lewistown has maintained a high rate of homeownership despite rising home prices and recent increases in interest rates. The city's housing market has shown resilience and growth, with significant appreciation in home values over the past decade. While renter percentages have slightly increased, recent declines in average rent prices suggest a dynamic rental market. As Lewistown continues to evolve, these housing trends will play a crucial role in shaping the city's demographic and economic landscape in the coming years.
