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Zip Code 59106 in Billings, Montana: Rising Home Values and Shifting Ownership Patterns
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 59106, located in Billings, Montana, has experienced significant demographic and real estate changes over the past decade. This area has seen a notable shift in homeownership rates and substantial increases in both average home prices and average rent prices.
The homeownership rate in zip code 59106 has shown a gradual decline from 2013 to 2022. In 2013, the area boasted an 86% homeownership rate, which steadily decreased to 73% by 2021. However, there was a slight uptick to 76% in 2022. This trend coincides with a remarkable increase in average home prices. In 2013, the average home price was $327,471, which rose to $524,298 by 2022, representing a 60% increase over nine years.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable, hovering around 80-86%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates declined more rapidly, dropping from 78% to 74%. This trend illustrates how lower interest rates generally encourage homeownership due to more affordable financing options.
The percentage of renters in zip code 59106 has shown an inverse relationship to homeownership rates, increasing from 12% in 2013 to 24% in 2022. This rise in renter occupancy coincides with a significant increase in average rent prices. In 2013, the average rent was $971, which climbed to $1,140 by 2022, a 17.4% increase. It's worth noting that the population of the zip code also grew substantially during this period, from 11,866 in 2013 to 17,389 in 2022, potentially contributing to increased demand for rental properties.
In 2023 and 2024, the real estate market in zip code 59106 continued to evolve. The average home price reached $543,362 in 2023 and further increased to $548,390 in 2024. This represents a 4.6% increase from 2022 to 2024. Notably, federal interest rates also rose significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends.
Looking ahead, predictive models suggest that average home prices in zip code 59106 are likely to continue their upward trajectory over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by population growth and the trend towards renting. However, the rate of increase may moderate as the market adjusts to economic conditions and housing supply catches up with demand.
In summary, zip code 59106 has experienced a shift towards renting, with homeownership rates declining despite rising home values. The area has seen substantial growth in both population and property values, with average home prices increasing by over 60% from 2013 to 2022. The interplay between federal interest rates, population growth, and housing demand has significantly shaped these trends, creating a dynamic real estate market in this Billings, Montana zip code.
