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Thompson Falls, Montana: Soaring Home Values and Ownership Rates in a Small City
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
Thompson Falls, located in Montana, is a small city with a rich history rooted in the mining and timber industries. Over the past decade, the city has experienced fluctuations in its homeownership rates and housing market dynamics. The overall trend shows an increase in homeownership percentage, coupled with a significant rise in average home prices. Meanwhile, average rent prices have shown more moderate growth.
The homeownership rate in Thompson Falls has seen a notable increase from 60% in 2017 to 80% in 2022. This upward trend in homeownership coincides with a substantial rise in average home prices. In 2010, the average home price was $161,083, which steadily increased to $407,617 by 2022, representing a remarkable 153% increase over 12 years. The most dramatic surge occurred between 2020 and 2022, with average home prices jumping from $243,872 to $407,617, a 67% increase in just two years.
Federal interest rates have played a significant role in shaping homeownership trends in Thompson Falls. The period from 2010 to 2021 saw historically low interest rates, ranging from 0.08% to 2.16%. These low rates likely contributed to the increase in homeownership, as they made mortgage financing more affordable. The sharp rise in homeownership from 70% in 2018 to 80% in 2022 coincided with interest rates remaining below 2% from 2019 to 2021, further supporting this correlation.
The rental market in Thompson Falls has shown interesting trends in relation to the homeownership shifts. As the percentage of renters decreased from 40% in 2017 to 20% in 2022, average rent prices experienced fluctuations. In 2013, the average rent was $625, which dropped to $511 in 2014 before rising again. By 2018, the average rent reached $846, its peak in the available data. However, as homeownership rates continued to climb, average rent prices moderated, settling at $716 in 2022. This trend suggests that increased homeownership may have eased pressure on the rental market.
Looking at the most recent data, the average home price in Thompson Falls reached $409,893 in 2023 and further increased to $418,389 in 2024. This represents a continued upward trend in home values, albeit at a slower rate compared to the dramatic increases seen in previous years. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the city.
Applying predictive models to forecast 5-year trends, it's anticipated that average home prices in Thompson Falls will continue to rise, but at a more moderate pace. The rate of increase is expected to slow down compared to the rapid growth seen in recent years. For average rent prices, a steady but modest increase is projected, influenced by the high homeownership rate and potential economic factors.
In summary, Thompson Falls has experienced a significant shift towards homeownership over the past decade, accompanied by a substantial increase in average home prices. The rental market has shown more stability in recent years, with moderate fluctuations in average rent prices. The interplay between federal interest rates, homeownership rates, and housing prices has been evident, with low interest rates correlating with increased homeownership. As the city moves forward, the housing market is expected to continue evolving, with more moderate growth in both home prices and rents anticipated in the coming years.
