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Trego, Montana: Resilient Homeownership Amid Rising Property Values
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
Trego, Montana is a picturesque community nestled in the northwestern part of the state. This small town has experienced interesting shifts in homeownership rates and housing prices over the past decade. The ownership percentage has shown a general upward trend, while average home prices have seen significant growth, particularly in recent years. Average rent prices have also fluctuated, reflecting the changing dynamics of the local housing market.
The homeownership rate in Trego has demonstrated a notable increase from 2013 to 2022. In 2013, the ownership rate stood at 88%, rising to a peak of 94% in 2016 and 2017. By 2022, it slightly decreased to 90%, still maintaining a high level of homeownership. Concurrently, average home prices have shown a substantial upward trajectory. In 2013, the average home price was $215,858, which more than doubled to $531,332 by 2022. This represents a remarkable 146% increase over nine years, indicating a robust appreciation in property values.
Federal interest rates have played a significant role in shaping homeownership trends in Trego. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. This coincided with the peak in homeownership rates of 94% in 2016 and 2017. As interest rates began to rise gradually from 2017 onwards, reaching 1.68% in 2022, there was a slight decline in homeownership rates to 90%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership by making mortgages more affordable.
The renter percentage in Trego has fluctuated inversely to the homeownership rate. In 2013, the renter occupancy was 11%, dropping to a low of 6% in 2016 and 2017. It then gradually increased to 10% by 2022. Average rent prices have shown some volatility during this period. In 2013, the average rent was $783, peaking at $849 in 2021 before decreasing to $749 in 2022. This represents a modest overall decrease of 4.3% from 2013 to 2022. The fluctuations in rent prices and renter percentages may be influenced by the changing population, which increased from 2,429 in 2013 to 2,599 in 2022, potentially affecting housing demand.
Looking at the most recent data, the average home price in Trego reached $538,335 in 2023 and further increased to $542,724 in 2024. This represents a continued upward trend in property values. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, marking a substantial increase from previous years.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in Trego will continue to rise, albeit at a more moderate pace. The rapid appreciation seen in recent years may slow down due to higher interest rates, potentially stabilizing around $600,000 by 2029. Average rent prices are expected to follow a similar trajectory, potentially reaching around $900 per month in the next five years, assuming steady population growth and economic conditions.
In summary, Trego has experienced a strong trend towards homeownership, with rates consistently above 90% in recent years. This has been accompanied by substantial growth in average home prices, more than doubling over the past decade. While rent prices have shown some fluctuation, they have remained relatively stable compared to the dramatic increase in home values. The interplay between federal interest rates, homeownership rates, and housing prices underscores the complex dynamics of the local real estate market in this Montana community.
