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Westside Missoula: Rising Home Values and Shifting Ownership in a Growing Neighborhood
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
The Westside neighborhood of Missoula, Montana has undergone significant changes in its housing market over the past decade. This area has experienced a notable shift in ownership patterns, average home prices, and rental costs, reflecting broader economic trends and local developments. Homeownership rates in Westside have declined from 49% in 2013 to 44% in 2022. This decrease coincides with a substantial increase in average home prices, which rose from $191,023 in 2013 to $434,046 in 2022, representing a 127% increase over nine years. This inverse relationship suggests that rising home prices may have made homeownership less attainable for many residents.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, interest rates remained historically low, ranging from 0.11% to 0.40%, with homeownership rates fluctuating between 43% and 49%. As interest rates began to rise more consistently from 2017 (1.00%) to 2019 (2.16%), homeownership rates stabilized around 45%. The dramatic drop in interest rates in 2020 and 2021 (to 0.38% and 0.08% respectively) did not immediately boost homeownership, likely due to the concurrent sharp increase in home prices.
Renter occupancy in Westside has shown an overall upward trend, increasing from 51% in 2013 to 56% in 2022. This rise correlates with changes in average rent prices, which increased from $859 in 2013 to $913 in 2022, a 6.3% rise. The increase in renter occupancy, despite rising rents, may be attributed to the even steeper increase in home prices, making renting a more viable option for many residents. Additionally, the growing population, which increased from 10,007 in 2013 to 12,180 in 2022, likely contributed to the demand for rental properties.
As of 2024, the average home price in Westside has reached $460,430, marking a 5.8% increase from 2022. This continued appreciation occurs against a backdrop of higher interest rates, which stood at 5.33% in 2024, significantly up from the 1.68% seen in 2022. These higher rates, combined with elevated home prices, may further impact homeownership trends in the neighborhood.
Looking ahead, predictive models suggest that average home prices in Westside could continue to rise over the next five years, potentially reaching around $550,000 by 2029. Rent prices are also expected to increase, possibly surpassing $1,000 per month on average within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, the Westside neighborhood has experienced a shift towards more renter-occupied housing units, driven by rapidly increasing home prices that have outpaced growth in rental costs. The interplay between federal interest rates, population growth, and local economic factors has shaped a housing market where homeownership has become increasingly challenging for many residents. As the neighborhood continues to evolve, these trends suggest a continuing tight housing market with potential affordability challenges for both buyers and renters in the coming years.
