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Twin Bridges, Montana: Rising Home Values and Shifting Ownership in a Growing Small Town
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
Twin Bridges, a small town in Montana, has experienced significant fluctuations in its housing market over the past decade. The ownership percentage has shown a general decline, while average home prices have increased substantially. Average rent prices have also risen, though not as dramatically as home prices. These trends reflect the changing dynamics of the local real estate market and population shifts in this quaint Montana community.
The homeownership rate in Twin Bridges has seen a notable decrease from 2013 to 2022. In 2013, 77% of residents owned their homes, but by 2022, this figure had dropped to 66%. This decline coincided with a sharp increase in average home prices. In 2016, the average home price was $208,334, and by 2022, it had more than doubled to $464,501. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents.
Federal interest rates have played a role in homeownership trends in Twin Bridges. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), the homeownership rate remained relatively stable, hovering around 70-80%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, the homeownership rate showed a more pronounced decline, dropping to 66% by 2022. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The percentage of renters in Twin Bridges has increased from 23% in 2013 to 34% in 2022. This rise in renters corresponds with an increase in average rent prices. In 2013, the average rent was $712, and by 2022, it had risen to $932, representing a 31% increase. The growing renter population and rising rent prices may be attributed to the increasing difficulty of homeownership due to rising home prices and interest rates. Additionally, the town's population grew from 567 in 2013 to 927 in 2022, which could have contributed to increased demand for rental properties.
In 2023 and 2024, the average home prices in Twin Bridges showed a slight dip followed by a recovery. The average home price in 2023 was $456,992, a minor decrease from 2022, but it rebounded to $464,744 in 2024. This recent stability in home prices occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024.
Looking ahead, based on recent trends, we can predict that average home prices in Twin Bridges may continue to rise moderately over the next five years, potentially reaching around $500,000 by 2029. Average rent prices are also likely to increase, possibly surpassing $1,200 per month within the same timeframe. These projections assume continued population growth and economic stability in the region.
In summary, Twin Bridges has experienced a shift towards a more rental-oriented housing market, with decreasing homeownership rates and increasing average home and rent prices. The interplay between federal interest rates, population growth, and local economic factors has significantly influenced these trends. As the town continues to evolve, these housing market dynamics will likely play a crucial role in shaping its future development and community composition.
