Rental trends in Montgomery have also shown noteworthy changes. The percentage of renters decreased slightly from 27% in 2013 to 26% in 2022. Despite this minor decrease in the renter population, average rent prices have increased substantially. In 2013, the average rent was $1,346, and by 2022, it had risen to $1,506, an increase of 11.9%. This increase in average rent, coupled with a slight decrease in the renter population, suggests a tightening rental market in the area.

Looking at the most recent data, we see that in 2023, the average home price in Montgomery reached $426,796, and in 2024, it further increased to $446,562. This represents a 4.6% year-over-year increase from 2023 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, home prices have continued to appreciate, indicating strong demand in the local real estate market.

Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Montgomery will continue to rise, albeit at a potentially slower pace due to higher interest rates. By 2029, average home prices could reach approximately $525,000 to $550,000, assuming a moderate annual growth rate of 3-4%. Average rent prices are also expected to increase, potentially reaching $1,700 to $1,800 per month by 2029, based on historical trends and anticipated demand.

In summary, Montgomery has demonstrated a resilient and growing real estate market over the past decade. The community has maintained a stable homeownership rate while experiencing significant appreciation in property values. The rental market, despite a slight decrease in the renter population, has seen steady increases in average rent prices. These trends, combined with recent data showing continued home price appreciation in the face of rising interest rates, suggest a robust and desirable housing market in zip code 12549 for the foreseeable future.