Loading Content...
Zip Code 59102 in Billings, Montana: Rising Home Values and Stable Ownership Rates Amid Interest Rate Fluctuations
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 59102, located in Billings, Montana, has experienced dynamic changes in its housing market over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 59102 has remained relatively stable, with slight variations over the years. In 2013, the homeownership rate was 67%, and it maintained this level through 2022. During this period, average home prices in the area saw significant growth. In 2013, the average home price was $198,209, and by 2022, it had increased to $343,731, representing a substantial 73.4% increase over nine years.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.4%), the homeownership rate in zip code 59102 remained steady at 66-67%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), the homeownership rate slightly decreased to 65% in 2019 and 2020. However, when interest rates dropped again in 2021 (0.08%), the homeownership rate rebounded to 67%, suggesting a correlation between lower interest rates and higher homeownership.
Renter percentages in zip code 59102 have shown a minor inverse relationship to homeownership rates. The percentage of renters increased slightly from 33% in 2013 to 35% in 2019 and 2020, before returning to 33% in 2021 and 2022. Average rent prices have generally trended upward during this period, albeit with some fluctuations. In 2013, the average rent was $992, rising to $1,162 in 2021, representing a 17.1% increase. However, there was a slight decrease to $1,015 in 2022.
Looking at the most recent data, the average home price in zip code 59102 continued to rise, reaching $360,097 in 2023 and $366,384 in 2024. This represents a 4.8% increase from 2022 to 2023 and a further 1.7% increase from 2023 to 2024. Concurrently, federal interest rates have increased significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 59102 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 $425,000 to $450,000, representing a 16-23% increase from 2024 levels. Average rent prices are also expected to increase, potentially reaching $1,300 to $1,400 per month by 2029, reflecting a 28-38% increase from 2022 levels.
In summary, zip code 59102 has demonstrated a resilient housing market with steadily increasing average home prices and generally stable homeownership rates. The area has weathered various economic conditions, including fluctuating interest rates, while maintaining a balance between owner-occupied and rental properties. The continued rise in both average home prices and rent suggests ongoing demand for housing in this Billings, Montana neighborhood, with potential for further growth in the coming years.
