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Riverfront, Missoula: Soaring Home Values Amidst Dynamic Rental Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
The Riverfront neighborhood in Missoula, Montana, has experienced significant changes in its housing market over the past decade. This urban area has seen fluctuations in homeownership rates, coupled with substantial increases in both average home prices and average rent prices. The area has generally maintained a high percentage of renters, while average home prices have shown a consistent upward trend.
Analyzing the relationship between homeownership percentages and average home prices reveals some interesting trends. In 2013, when the homeownership rate was at 19%, the average home price was $200,168. As homeownership rates increased to 30% by 2018, average home prices rose to $269,146, indicating a positive correlation. However, this trend reversed in subsequent years. By 2022, despite a slight decrease in homeownership to 22%, average home prices had soared to $481,702, representing a 140% increase from 2013 levels.
The federal interest rates appear to have influenced homeownership rates in the Riverfront neighborhood. From 2013 to 2018, when interest rates were relatively low (ranging from 0.11% to 1.83%), homeownership rates increased from 19% to 30%. This aligns with the general trend of lower interest rates encouraging homeownership. However, as interest rates began to rise more sharply from 2018 onwards, homeownership rates in the neighborhood declined, dropping to 22% by 2022 when the interest rate reached 1.68%.
Renter percentages and average rent prices have shown their own distinct patterns. In 2013, with 81% of residents renting, the average rent was $724. As the renter percentage decreased to 70% in 2018, average rent increased to $814. Interestingly, by 2022, despite the renter percentage rising back to 78%, average rent had surged to $1,031, a 42% increase from 2013. This suggests that factors beyond supply and demand, such as overall market conditions and property values, significantly influence rent prices in the neighborhood.
Looking at the most recent data, average home prices in the Riverfront neighborhood continued to rise, reaching $492,935 in 2023 and $511,544 in 2024. This represents a 6.2% increase from 2022 to 2024. Notably, federal interest rates also increased substantially during this period, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and market dynamics.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in the Riverfront neighborhood will continue to rise, potentially reaching around $600,000 by 2029. Average rent prices are also expected to increase, potentially surpassing $1,200 per month within the same timeframe. These projections are based on historical trends and assume relatively stable economic conditions.
In summary, the Riverfront neighborhood has experienced significant changes in its housing market. The most notable trends include the substantial increase in average home prices, which more than doubled from 2013 to 2022, and the steady rise in average rent prices. While homeownership rates initially increased with lower interest rates, they have since declined as both home prices and interest rates have risen. The neighborhood remains predominantly renter-occupied, with renters consistently making up over 70% of the population throughout the observed period.
