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West Yellowstone: Rising Home Values and Ownership in Yellowstone's Gateway
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
West Yellowstone, Montana is a small town located at the western entrance of Yellowstone National Park, serving as a gateway for tourists visiting this iconic natural wonder. Over the past decade, the town has experienced notable shifts in its housing market, with trends in homeownership rates and property values reflecting broader economic changes.
The percentage of owner-occupied housing in West Yellowstone has shown a significant upward trend, particularly in recent years. In 2013, the homeownership rate stood at 44%, but by 2022, it had risen dramatically to 62%. This increase in homeownership coincided with a substantial rise in average home prices. In 2013, the average home price was $224,618, which steadily climbed to $595,118 by 2022, representing a remarkable 165% increase over this period.
The relationship between federal interest rates and homeownership rates in West Yellowstone presents an interesting case. Despite historically low interest rates from 2013 to 2021 (ranging from 0.08% to 1.83%), the most significant jump in homeownership occurred between 2019 and 2022, when rates began to rise. The homeownership rate increased from 55% in 2019 to 62% in 2022, even as interest rates climbed from 2.16% to 1.68% during this time. This suggests that local factors may have played a more significant role in driving homeownership than national interest rate trends.
Conversely, the percentage of renters in West Yellowstone has decreased over time, dropping from 56% in 2013 to 38% in 2022. Despite this decline in the renter population, average rent prices have shown a moderate increase. In 2013, the average rent was $533, which rose to $567 by 2022, an increase of about 6.4%. This relatively modest rise in rent prices, compared to the substantial increase in home values, may have contributed to the shift towards homeownership in the town.
In 2023 and 2024, West Yellowstone's housing market has shown signs of stabilization. The average home price in 2023 was $575,344, representing a slight decrease from the 2022 peak. However, prices have rebounded in 2024, reaching $599,553. This coincides with higher federal interest rates of 5.02% in 2023 and 5.33% in 2024, which may impact future homebuying trends.
Looking ahead, based on historical trends and current market conditions, we can project potential scenarios for the next five years. Average home prices in West Yellowstone may continue to rise, albeit at a more moderate pace, potentially reaching around $650,000 to $700,000 by 2029. Rent prices could see a gradual increase, possibly reaching an average of $600 to $625 per month in the same timeframe. However, these projections are subject to various economic factors and local market conditions.
In summary, West Yellowstone has experienced a significant shift towards homeownership over the past decade, accompanied by substantial increases in property values. The town's unique position as a tourist gateway and the complex interplay between local economic factors and national trends have shaped its housing market dynamics. As the market shows signs of stabilization, future trends will likely be influenced by a combination of local demand, economic conditions, and broader housing market factors.
