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Zip Code 59088: Rising Home Values and Shifting Ownership Patterns 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 59088, located in Worden, Montana, presents an interesting case study of homeownership and housing market dynamics in a rural setting. This area has experienced notable fluctuations in both ownership rates and housing prices over the past decade, reflecting broader economic trends and local market conditions. The homeownership rate in zip code 59088 has shown a general decline from 2013 to 2018, dropping from 85% to 70%. However, there was a rebound starting in 2019, with the ownership rate increasing to 77% by 2022. This trend correlates interestingly with the average home prices in the area. In 2013, the average home price was $208,430, and it steadily increased to $282,979 by 2018. The rise in home prices during this period may have contributed to the decline in homeownership rates, as higher prices potentially made purchasing homes less affordable for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 59088. The period from 2013 to 2015 saw historically low interest rates, hovering around 0.1% to 0.13%. This coincided with a slight increase in average home prices from $208,430 to $247,884. As interest rates began to rise more significantly from 2016 onwards, reaching 2.16% by 2019, we observed a temporary dip in homeownership rates. However, the sharp drop in interest rates to 0.38% in 2020 coincided with a rebound in homeownership, rising from 70% in 2018 to 76% in 2020.
Renter percentages in zip code 59088 have generally mirrored the inverse of homeownership trends. The renter population increased from 15% in 2013 to a peak of 30% in 2018, before declining to 23% by 2022. Average rent prices have shown some volatility, rising from $940 in 2013 to a peak of $1,033 in 2015, then fluctuating before settling at $857 in 2022. The population growth from 1,369 in 2013 to 1,713 in 2022 may have influenced rental demand and prices, particularly during periods of lower homeownership rates.
In 2023 and 2024, we see a slight stabilization in the housing market for zip code 59088. The average home price in 2023 was $412,162, showing a minimal decrease from the 2022 price of $414,708. In 2024, there's a slight uptick to $414,547. This stabilization occurs despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates might typically discourage home buying, but the resilience of home prices suggests strong local demand or limited housing supply in the area.
Looking ahead, we can forecast potential trends for the next five years. Based on historical data and current market conditions, average home prices in zip code 59088 are likely to continue a modest upward trajectory, potentially reaching around $450,000 by 2029. This projection assumes a continuation of the area's attractiveness and economic stability. Average rent prices, which have shown more volatility, may stabilize and gradually increase to approximately $1,000 per month by 2029, influenced by housing demand and overall economic conditions in the area.
In summary, zip code 59088 has demonstrated resilience in its housing market, with homeownership rates rebounding in recent years despite fluctuations in home prices and interest rates. The interplay between federal interest rates, home prices, and ownership rates highlights the complex dynamics of the local real estate market. The recent stabilization of home prices, even in the face of rising interest rates, suggests a robust local housing demand that may continue to shape the market in the coming years.
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