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Stanford, Montana: Rising Home Values in a Small Town with Stable Population
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
Stanford, Montana, is a small community with a population that has remained relatively stable over the past decade, hovering around 250 residents. The town has experienced fluctuations in homeownership rates and average home prices, with a general trend towards increasing property values in recent years. Average rent prices have shown some volatility, but have generally remained moderate compared to larger urban areas.
The homeownership rate in Stanford has shown slight variability over the years, with a general trend of slight decline. In 2013, the homeownership rate stood at 78%, which decreased to 75% by 2022. This minor downward trend coincides with a significant increase in average home prices. From 2016 to 2022, the average home price in Stanford rose from $131,346 to $226,084, representing a substantial 72% increase over six years.
Examining the relationship between federal interest rates and homeownership rates reveals some interesting patterns. As interest rates remained low between 2013 and 2015 (ranging from 0.11% to 0.13%), homeownership rates in Stanford were relatively high, between 74% and 78%. However, as interest rates began to rise from 2016 onwards, reaching 1.68% by 2022, there was a slight decline in homeownership rates, settling at 75% in 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The percentage of renters in Stanford has shown a slight increase over time, rising from 22% in 2013 to 24% in 2022. Interestingly, average rent prices have exhibited some volatility. In 2013, the average rent was $456, which increased to a peak of $554 in 2019. However, there was a significant drop in average rent prices in subsequent years, falling to $402 by 2022. This decrease in rent prices, despite the slight increase in the renter population, could be attributed to various local economic factors or changes in the rental market dynamics of the town.
In 2023 and 2024, Stanford experienced further increases in average home prices. The average home price reached $230,601 in 2023 and continued to rise slightly to $232,129 in 2024. Concurrently, federal interest rates also saw a significant increase, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may potentially impact future homeownership trends in the town.
Looking ahead, based on the historical data and current trends, it's projected that average home prices in Stanford will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach approximately $250,000 to $270,000 by 2029. Rent prices, which have shown volatility, may stabilize and potentially increase moderately, possibly reaching around $450 to $500 per month by 2029, assuming local economic conditions remain stable.
In summary, Stanford has experienced a gradual increase in average home prices over the past decade, with a slight decline in homeownership rates. The rental market has shown some fluctuations, with recent trends indicating lower average rents despite a small increase in the renter population. The interplay between federal interest rates, home prices, and ownership rates highlights the complex dynamics of the local housing market in this small Montana town.
