The growth in housing prices may be correlated with several demographic and economic factors evident in the data. For instance, the median income in Terry has shown some variability but has generally increased over the years. In 2013, the median income was $38,658, and by 2022, it had risen to $44,699. This 15.6% increase in median income over the decade could partially explain the ability of the local market to support rising home prices while still remaining the most affordable in the state.

Interestingly, Terry has experienced some demographic shifts that may influence its housing market. The population has fluctuated over the years, with 163 residents reported in 2022, down from a peak of 180 in 2016. Despite this slight decline, the population density has remained relatively stable, suggesting a consistent demand for housing within the city limits.

Another factor potentially contributing to Terry's housing market dynamics is the changing composition of homeownership. The percentage of owner-occupied housing units has decreased from 87.3% in 2013 to 75.41% in 2022. Correspondingly, the percentage of renter-occupied units has increased from 12.7% to 24.59% over the same period. This shift towards more rental properties could be influencing the overall housing market, potentially affecting both prices and availability.

The employment-to-population ratio in Terry has shown improvement, rising from 45.8% in 2013 to 59% in 2022. This increase in employment rates may be contributing to the city's ability to sustain rising housing prices, as more employed residents typically translates to greater purchasing power in the real estate market.

In conclusion, Terry's distinction as the city with the lowest average housing prices in Montana in 2024 is set against a backdrop of steady price growth and evolving socioeconomic conditions. The city has experienced a significant increase in housing prices since 2020, potentially driven by rising median incomes, stable population density, and improving employment rates. Despite these increases, Terry maintains its position as the most affordable housing market in the state, offering a unique opportunity for homebuyers in Montana. The shift in homeownership patterns and the interplay between demographic and economic factors continue to shape Terry's real estate landscape, making it an intriguing case study in affordable housing within the context of a changing small-city environment.