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Zip Code 59046: Rising Home Values and 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 59046, encompassing Lavina in Montana, presents an intriguing case study of rural housing dynamics. This area has experienced significant fluctuations in homeownership rates and property values over the past decade, reflecting broader economic trends and local demographic shifts.
From 2013 to 2022, the homeownership rate in zip code 59046 saw a notable increase, rising from 83% to 87%. This upward trend in homeownership coincided with a substantial rise in average home prices. In 2016, the average home price in the area was $169,995, which steadily climbed to $317,463 by 2022, representing an impressive 86.7% increase over six years. This correlation suggests that rising property values may have encouraged more residents to invest in homeownership, possibly viewing real estate as a lucrative long-term investment.
The relationship between federal interest rates and homeownership rates in this zip code reveals an interesting pattern. Despite the federal interest rate increasing from 0.4% in 2016 to 1.68% in 2022, the homeownership rate continued to rise from 75% to 87% during the same period. This trend suggests that local factors, such as the relatively affordable housing market compared to urban areas, may have had a stronger influence on homeownership decisions than national interest rates.
Renter percentages in zip code 59046 showed an inverse relationship to homeownership rates, decreasing from 17% in 2013 to 13% in 2022. Interestingly, average rent prices displayed volatility during this period. In 2013, the average rent was $596, which increased to $701 by 2017, before fluctuating and settling at $672 in 2022. The overall trend shows a 12.8% increase in average rent from 2013 to 2022, despite the declining percentage of renters. This could indicate a tightening rental market, with fewer available units commanding higher prices.
In 2023 and 2024, the housing market in zip code 59046 experienced a slight correction. The average home price decreased from the 2022 peak of $317,463 to $292,169 in 2023, with a marginal increase to $292,522 in 2024. This stabilization occurred alongside a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These higher interest rates may have contributed to the cooling of the local housing market.
Looking ahead, predictive models suggest a potential stabilization in home prices for zip code 59046 over the next five years. Given the recent plateau in prices and the current high interest rate environment, average home values are expected to grow modestly, possibly reaching around $310,000 by 2029. Rent prices are anticipated to continue their gradual upward trajectory, potentially reaching an average of $725 per month by 2029, assuming the current trends in population growth and housing supply remain consistent.
In summary, zip code 59046 has demonstrated a strong trend towards homeownership, with increasing property values and a shrinking rental market. The area has shown resilience in the face of rising interest rates, maintaining high homeownership rates. However, the recent stabilization in home prices and the current high interest rate environment may signal a new phase of more moderate growth in the local real estate market.
