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White Sulphur Springs, Montana: Rising Home Values and Ownership in Hot Springs City
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
White Sulphur Springs, a small city in Montana, has experienced notable shifts in homeownership rates and housing prices over the past decade. The city, known for its natural hot springs and as the birthplace of acclaimed author Ivan Doig, has seen a general trend of increasing homeownership and rising average home prices, while average rent prices have fluctuated.
The homeownership rate in White Sulphur Springs has shown a significant upward trend, particularly in recent years. In 2013, the homeownership rate was 70%, which remained relatively stable until 2020 when it began to climb sharply. By 2022, the homeownership rate had reached 86%, representing a substantial increase of 16 percentage points over a nine-year period. This rise in homeownership coincided with a steady increase in average home prices. In 2015, the average home price was $132,391, and by 2022, it had more than doubled to $296,317, reflecting a robust 124% increase over seven years.
The relationship between federal interest rates and homeownership rates in White Sulphur Springs appears to follow the general trend of lower interest rates encouraging higher homeownership. From 2013 to 2020, when interest rates were historically low, ranging from 0.09% to 0.38%, the city maintained a stable homeownership rate around 70%. As interest rates began to rise in 2021 and 2022, reaching 1.68%, homeownership rates paradoxically increased to 92% and 86%, respectively. This unusual trend may be attributed to other local factors influencing the housing market in White Sulphur Springs.
The renter percentage in White Sulphur Springs has inversely mirrored the homeownership trend, decreasing from 30% in 2013 to 14% in 2022. Interestingly, average rent prices have shown significant volatility during this period. In 2013, the average rent was $874, which decreased to $494 by 2016, representing a 43% drop. However, rent prices began to recover, reaching $640 in 2022, though still 27% lower than the 2013 figure. This fluctuation in rent prices, coupled with the decreasing renter population, suggests a complex rental market influenced by various local economic factors and housing availability.
In 2023 and 2024, the average home prices in White Sulphur Springs continued to rise, reaching $304,086 and $311,215, respectively. This represents a 2.6% increase from 2022 to 2023 and a further 2.3% increase from 2023 to 2024. Concurrently, federal interest rates have increased significantly, reaching 5.02% in 2023 and 5.33% in 2024, which are the highest rates since 2007. Despite these higher interest rates, home prices have continued to appreciate, indicating strong demand in the local housing market.
Looking ahead, based on the observed trends, we can predict that average home prices in White Sulphur Springs will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. A conservative estimate would suggest an annual increase of 2-3%, which could bring the average home price to around $350,000-$360,000 by 2029. For rent prices, the trend is less clear due to past volatility. However, if the current upward trend continues, we might see average rents increase to around $700-$750 per month in the next five years, assuming stable economic conditions and housing supply.
In summary, White Sulphur Springs has experienced a significant increase in homeownership rates and average home prices over the past decade, with a particularly sharp rise in recent years. The rental market has shown more volatility, with decreasing renter percentages and fluctuating rent prices. Despite rising interest rates, the housing market remains strong, suggesting continued growth in home values in the coming years.
