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Savage, Montana: Rising Home Values Amidst Strong Ownership 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
Savage, Montana, is a small rural community that has experienced notable demographic shifts and housing market changes over the past decade. The city has seen fluctuations in homeownership rates, with a general trend towards increased owner occupancy in recent years. Average home prices have shown significant growth, particularly since 2019, while average rent prices have displayed more volatility.
The relationship between homeownership rates and average home prices in Savage reveals an interesting trend. From 2013 to 2019, the percentage of owner-occupied homes increased from 67% to 75%, coinciding with a period of relatively stable or unknown home prices. However, as average home prices became available and showed rapid growth, homeownership rates experienced some fluctuation. In 2019, the average home price was $209,454, and by 2022, it had risen to $321,100, a substantial 53% increase. Despite this sharp rise in prices, the homeownership rate actually increased from 75% in 2019 to 76% in 2022, suggesting a strong local desire for homeownership even in the face of rising costs.
Federal interest rates have played a role in shaping homeownership trends in Savage. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 2.16%. This low-interest environment likely contributed to the overall increase in homeownership during this period, as mortgage financing became more affordable. The slight dip in homeownership to 69% in 2021 coincided with the start of rising interest rates, which reached 1.68% in 2022. However, the resilience of homeownership in Savage is evident, as rates rebounded to 76% in 2022 despite the increasing cost of financing.
Renter percentages and average rent prices in Savage have shown an inverse relationship. As the percentage of renters decreased from 33% in 2013 to 22% in 2022, average rent prices experienced significant fluctuations. The average rent peaked at $1,003 in 2013 when the renter percentage was highest, then declined to $654 in 2022 when the renter percentage was at its lowest. This trend suggests that as more residents transitioned to homeownership, the demand for rentals decreased, potentially leading to more competitive rental pricing.
In 2023 and 2024, Savage's housing market continued to evolve. The average home price in 2023 was $291,849, showing a slight decrease from the 2022 peak but still significantly higher than pre-2020 levels. For 2024, the average home price has rebounded to $306,619. Interestingly, these price movements occurred against a backdrop of sharply rising federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability and market dynamics.
Looking ahead, predictive models suggest that average home prices in Savage may continue to rise over the next five years, albeit at a more moderate pace than the sharp increases seen from 2019 to 2022. Average rent prices are projected to stabilize and potentially increase slightly, reflecting the balance between homeownership trends and rental demand. These forecasts take into account the current high-interest rate environment and its potential impact on housing affordability and market activity.
In summary, Savage has demonstrated a strong preference for homeownership, with rates increasing despite rising home prices and interest rates. The inverse relationship between renter percentages and average rent prices highlights the interconnected nature of the local housing market. As the community moves forward, the balance between homeownership aspirations and economic factors will continue to shape its housing landscape.
