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Vaughn, Montana: Rising Home Values Amid Stable Ownership in a Small Community
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
Vaughn, Montana, is a small community located in Cascade County. This rural settlement has experienced fluctuating population trends over the past decade, with homeownership rates remaining relatively high throughout. The city has seen significant changes in average home prices and average rent prices, reflecting broader economic trends and local market dynamics.
Homeownership rates in Vaughn have remained consistently high, ranging from 80% to 85% between 2013 and 2022. This trend aligns with the rural character of the area, where long-term residency is common. Average home prices have shown a steady upward trend, particularly in recent years. In 2013, the average home price was $161,628, which increased to $316,842 by 2022, representing a substantial 96% growth over nine years.
The relationship between federal interest rates and homeownership rates in Vaughn appears to follow general economic principles. For instance, when interest rates were at historic lows between 2013 and 2016 (ranging from 0.09% to 0.40%), homeownership rates remained high at 83-85%. As interest rates began to rise in 2017 (1.00%) and 2018 (1.83%), there was a slight dip in homeownership to 80%, possibly indicating that some potential buyers were priced out of the market.
Renter percentages in Vaughn have fluctuated between 15% and 20% from 2013 to 2022. Average rent prices have shown considerable volatility during this period. In 2013, the average rent was $479, which remained relatively stable until 2017. A significant jump occurred in 2018, with average rent rising to $867. Since then, average rent has moderated somewhat, reaching $761 in 2022. This represents a 59% increase from 2013 to 2022, although not as dramatic as the rise in home prices.
In 2023, the average home price in Vaughn reached $331,853, continuing the upward trend observed in previous years. This represents a 4.7% increase from 2022. Moving into 2024, the average home price has further risen to $348,911, marking a 5.1% increase from 2023. Concurrently, federal interest rates have increased significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact affordability and could potentially influence homeownership rates in the coming years.
Looking ahead, based on the observed trends, we can project that average home prices in Vaughn are likely to continue their upward trajectory over the next five years, albeit potentially at a more moderate pace due to higher interest rates. Average rent prices may also continue to rise, but likely at a slower rate than home prices, as landlords adjust to market conditions and demand for rentals potentially increases due to reduced affordability of home purchases.
In summary, Vaughn has maintained high homeownership rates despite significant increases in average home prices. The community has experienced volatile rent prices, with a notable spike in 2018. Recent years have seen continued growth in home values, coupled with rising interest rates, which may reshape the local housing market dynamics in the near future. The interplay between homeownership rates, housing prices, and economic factors will be crucial in determining the long-term housing trends in this Montana community.
