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Zip Code 59038: Rising Home Values and Ownership in Rural Hysham, 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 59038, located in Hysham, Montana, is a rural area covering 428.84 square miles. This small community has experienced fluctuating homeownership rates and housing prices over the past decade, reflecting the dynamic nature of its real estate market.
The homeownership rate in zip code 59038 has shown a gradual increase over time, with some fluctuations. In 2013, the homeownership rate was 70%, which dipped to 64% in 2015 before rising again to 72% in 2021. This upward trend in homeownership coincides with changes in average home prices. The average home price in 2016 was $113,890, which steadily increased to $201,461 by 2022, representing a significant 77% increase over six years.
Federal interest rates have played a role in homeownership trends in zip code 59038. During periods of low interest rates, such as from 2013 to 2015 when rates were below 0.15%, homeownership rates initially decreased. However, as interest rates began to rise gradually from 2016 onwards, homeownership rates also increased, reaching 72% in 2021 when the interest rate was at 0.08%. This suggests that other local factors may have influenced homeownership decisions more strongly than national interest rates in this particular area.
Renter percentages in zip code 59038 have shown an inverse relationship to homeownership rates, as expected. The percentage of renters increased from 30% in 2013 to 36% in 2015, before declining to 28% in 2021. Average rent prices have been volatile during this period. In 2013, the average rent was $753, which increased sharply to $1,014 in 2014 before dropping to $629 in 2016. By 2021, the average rent had risen again to $1,096, representing a 46% increase from 2013. These fluctuations in rent prices may be influenced by the small population size, which ranged from 267 to 368 residents during this period, making the rental market more sensitive to individual changes.
In 2023, the average home price in zip code 59038 reached $202,910, showing a slight increase from the previous year. This trend continued into 2024, with average home prices rising to $210,823. Concurrently, federal interest rates increased significantly to 5.02% in 2023 and further to 5.33% in 2024, potentially impacting homebuying decisions in the area.
Looking ahead, predictive models suggest that average home prices in zip code 59038 may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by ongoing demand for rental properties and the overall trend of rising housing costs. However, the small population size of the area may lead to more volatile price movements compared to larger markets.
In summary, zip code 59038 has experienced a general trend of increasing homeownership rates and rising average home prices over the past decade. Rent prices have been more volatile but show an overall upward trend. The recent sharp increase in interest rates may influence future homebuying decisions, potentially slowing the rate of price appreciation in the coming years. The unique characteristics of this small, rural community contribute to a dynamic and sometimes unpredictable real estate market.
