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Zip Code 59061: Rising Home Values and Ownership Rates in Sparsely Populated Nye, 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 59061, located in Nye, Montana, is characterized by its extremely low population density of just 1 person per square mile. This rural area has experienced significant changes in homeownership and housing prices over the past decade. The community has witnessed a general trend of increasing homeownership rates, rising average home prices, and fluctuating average rent prices.
The homeownership rate in zip code 59061 has shown a strong upward trend, increasing from 72% in 2013 to 87% in 2022. This substantial rise in homeownership coincides with a significant increase in average home prices. In 2013, the average home price was $229,814, which steadily rose to $480,309 by 2022, representing a 109% increase over nine years. The most dramatic surge occurred between 2020 and 2022, with average home prices jumping from $329,973 to $480,309, a 45.6% increase in just two years.
Federal interest rates have played a role in homeownership trends in the area. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 2.16%. This low-interest environment likely contributed to the increase in homeownership, as mortgages became more affordable. The homeownership rate rose from 72% in 2013 to 87% in 2020, aligning with this period of low interest rates.
Conversely, the percentage of renters in zip code 59061 has decreased significantly, from 28% in 2013 to 12% in 2022. Despite this decline in the renter population, average rent prices have shown an overall upward trend. The average rent increased from $698 in 2013 to $967 in 2022, a 38.5% rise. However, this trend was not consistent, with some years showing decreases in average rent. For instance, average rent dropped from $698 in 2013 to $626 in 2017 before beginning a steep climb to $967 in 2022.
Looking at the most recent data, the average home price in zip code 59061 for 2023 was $456,694, showing a slight decrease from 2022. However, in 2024, the average home price has rebounded to $479,715. This recent trend coincides with higher federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends in the area.
Applying predictive models to forecast 5-year trends, we can expect average home prices in zip code 59061 to continue their overall upward trajectory, albeit at a potentially slower rate due to higher interest rates. Average rent prices are likely to follow suit, continuing their upward trend as the limited rental market in the area may drive up prices.
In summary, zip code 59061 has experienced a significant shift towards homeownership, with rates increasing from 72% to 87% between 2013 and 2022. This trend has been accompanied by a substantial rise in average home prices, more than doubling from $229,814 to $480,309 in the same period. The rental market has shrunk considerably, yet average rent prices have increased overall. The recent uptick in federal interest rates may moderate the pace of homeownership growth and price increases in the coming years, but the long-term trend is expected to remain positive for both home prices and rent in this Montana community.
