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Zip Code 59222: Rising Home Values and Ownership Rates in Flaxville, 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 59222, located in Flaxville, Montana, is a rural area characterized by its low population density and predominantly owner-occupied housing market. This small community has experienced significant shifts in homeownership rates and property values over the past decade, reflecting broader economic trends and local demographic changes.
The ownership percentage in zip code 59222 has shown a remarkable upward trend, increasing from 67% in 2013 to 91% in 2022. This surge in homeownership coincided with fluctuations in average home prices. From 2016 to 2022, average home prices rose steadily from $146,565 to $264,380, representing a substantial 80% increase over six years. The most dramatic rise occurred between 2020 and 2022, with average home prices jumping from $180,805 to $264,380, a 46% increase in just two years.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 59222. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 0.38%, which likely contributed to the increased homeownership rates. As interest rates remained low, more residents were able to afford mortgages, driving up the ownership percentage from 67% in 2013 to 87% in 2020. The sudden spike in homeownership to 91% in 2022 occurred despite a rise in interest rates to 1.68%, suggesting other local factors may have influenced this trend.
Conversely, the renter population in zip code 59222 has decreased significantly. The percentage of renters dropped from 31% in 2013 to just 7% in 2022. This decline in renters coincided with fluctuations in average rent prices. Average rent peaked at $1,101 in 2013 and generally declined thereafter, reaching $650 in 2022. The sharp decrease in average rent from $1,068 in 2017 to $443 in 2019 may have influenced some renters to transition to homeownership, especially given the low interest rates during that period.
Looking at the most recent data, average home prices in zip code 59222 slightly decreased from $264,380 in 2022 to $257,545 in 2023, marking a 2.6% decline. However, prices rebounded to $265,541 in 2024, surpassing the 2022 level. This recovery occurred despite a significant increase in federal interest rates, which rose from 1.68% in 2022 to 5.02% in 2023 and further to 5.33% in 2024. This resilience in home prices suggests strong local demand or limited housing supply in the area.
Applying predictive models to forecast 5-year trends, we anticipate average home prices in zip code 59222 to continue their upward trajectory, albeit at a more moderate pace. The average home price is projected to reach approximately $300,000 by 2029. Average rent prices, which have been volatile, are expected to stabilize and gradually increase, potentially reaching around $800 per month by 2029.
In summary, zip code 59222 has experienced a significant shift towards homeownership, with a corresponding decrease in the renter population. Despite fluctuations in federal interest rates, average home prices have shown strong growth, particularly in recent years. The area's resilience to higher interest rates suggests a robust local housing market, likely driven by factors such as limited supply and changing demographics. As the community continues to evolve, these trends are expected to shape the local real estate landscape in the coming years.
