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Zip Code 59041: Rising Home Values and High Ownership Rates in Rural 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 59041, located in Silesia, Montana, presents an intriguing case study of homeownership and rental trends in a small, rural community. This area has maintained a consistently high rate of homeownership over the past decade, while experiencing significant fluctuations in both average home prices and average rent prices.
The homeownership rate in zip code 59041 has remained remarkably stable, hovering around 86% from 2013 to 2022. This high rate of homeownership suggests a strong preference for property ownership in the community. During this period, average home prices have shown a substantial upward trend. In 2016, the average home price was $260,394, which steadily increased to $480,040 by 2022, representing an impressive 84.4% growth over six years. This significant appreciation in home values occurred despite the relatively stable homeownership rate, indicating a robust local real estate market.
Federal interest rates have played a role in shaping homeownership trends in zip code 59041. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.40%, which likely contributed to the high homeownership rate. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate remained steady at 86%, suggesting that other local factors may have offset the potential impact of rising borrowing costs.
The rental market in zip code 59041 has experienced its own set of dynamics. The percentage of renters has remained relatively low, fluctuating between 13% and 16% from 2013 to 2022. Despite this small renter population, average rent prices have shown significant volatility. In 2013, the average rent was $493, which increased to $815 by 2019, representing a 65.3% increase. The upward trend continued, with average rent reaching $1,045 in 2021, before slightly decreasing to $892 in 2022. This volatility in rent prices, coupled with the small renter population, suggests a potentially tight rental market with limited supply.
Looking at the most recent data, the average home price in zip code 59041 reached $480,860 in 2023 and further increased to $513,652 in 2024. This represents a 6.8% year-over-year increase, indicating continued strong growth in the local real estate market. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher borrowing costs, the local housing market appears to remain robust.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 59041 will continue to rise, albeit at a potentially slower rate due to higher interest rates. We project that by 2029, average home prices could reach approximately $600,000 to $650,000, assuming a moderate annual growth rate of 3-5%. For average rent prices, we expect a more stable trajectory, with potential increases to around $1,100 to $1,200 per month by 2029, reflecting a 3-4% annual growth rate.
In summary, zip code 59041 demonstrates a strong preference for homeownership, with 86% of residents owning their homes. The area has experienced substantial growth in average home prices, nearly doubling from 2016 to 2024. Despite fluctuations in federal interest rates, the local real estate market has shown resilience. The rental market, while smaller, has seen significant price volatility. Looking ahead, we anticipate continued growth in both home prices and rents, albeit at a potentially moderated pace due to higher interest rates and economic factors.
