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Zip Code 59011: Rising Home Values and Stable Ownership in Big Timber, Montana
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
Zip code 59011, located in Big Timber, Montana, presents an intriguing case study of homeownership and housing market dynamics in a rural setting. This area has experienced fluctuations in homeownership rates, with a general trend towards increased owner-occupied housing in recent years. Average home prices have shown consistent growth, while average rent prices have remained relatively stable with minor fluctuations.
The relationship between homeownership rates and average home prices in zip code 59011 reveals some interesting patterns. In 2013, the homeownership rate stood at 73%, with an average home price of $169,372. As average home prices steadily increased, reaching $241,969 by 2019, the homeownership rate experienced a slight decline to 68%. However, this trend reversed in subsequent years. By 2022, despite a significant jump in average home prices to $400,665, the homeownership rate rebounded to 75%. This suggests that local factors, such as employment opportunities or lifestyle preferences, may have influenced homeownership decisions beyond just price considerations.
Federal interest rates have played a role in shaping homeownership trends in the area. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained relatively stable, ranging from 71% to 73%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the area surprisingly saw an increase in homeownership to 75%. This counterintuitive trend might be attributed to local economic factors or a desire for stability in uncertain times.
Renter percentages and average rent prices in zip code 59011 have shown some correlation. In 2013, with 27% of residents renting, the average rent was $739. As the renter population increased to 32% by 2019, average rent saw a slight increase to $743. However, by 2022, as the renter percentage decreased to 24%, average rent actually decreased to $727. This suggests that local rental market dynamics may be influenced by factors beyond simple supply and demand, such as housing quality or local economic conditions.
In 2023 and 2024, average home prices in zip code 59011 continued their upward trajectory. The average home price reached $409,054 in 2023 and further increased to $425,189 in 2024. This represents a significant 6.1% year-over-year increase from 2022 to 2023, followed by a more moderate 3.9% increase from 2023 to 2024. Notably, federal interest rates also saw a substantial rise, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and housing market dynamics.
Looking ahead, predictive models suggest that average home prices in zip code 59011 may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are expected to remain relatively stable, with possible minor increases to keep pace with inflation and housing demand. However, local economic factors and population changes will play crucial roles in shaping these trends.
In summary, zip code 59011 has demonstrated resilience in homeownership rates despite rising home prices. The area has seen a significant appreciation in property values, with average home prices more than doubling from 2013 to 2024. While rental markets have remained relatively stable, the interplay between homeownership rates, home prices, and interest rates suggests a complex and dynamic housing market influenced by both local and national economic factors.
