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Zip Code 59223: Fort Peck's Rising Home Values and Ownership Trends
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 59223, encompassing Fort Peck in Montana, presents an intriguing case study of homeownership and housing market trends. This rural area, spanning 1,681.8 square miles, has experienced fluctuations in its ownership rates and housing prices over the years. The overall trend shows a slight increase in homeownership, coupled with significant growth in average home prices, particularly in recent years.
From 2013 to 2022, the homeownership rate in Fort Peck increased from 89% to 91%. This upward trend in ownership coincided with a substantial rise in average home prices. In 2016, the average home price was $213,123, which steadily increased to $372,960 by 2022, representing a 75% increase over six years. This correlation suggests that rising property values may have encouraged more residents to invest in homeownership, viewing it as a potentially lucrative long-term investment.
The federal interest rates play a crucial role in homeownership trends. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), the homeownership rate remained relatively stable at around 87-89%. As interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), there was a slight dip in homeownership to 81% in 2019. However, when interest rates dropped again in 2020 (0.38%) and 2021 (0.08%), homeownership rebounded to 87% and 88% respectively. This pattern aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options.
Regarding rental trends, the percentage of renters in Fort Peck fluctuated between 11% and 20% from 2013 to 2022. Interestingly, average rent prices showed an overall upward trend during this period. In 2013, the average rent was $571, which increased to $735 by 2021, representing a 29% increase. However, there was a notable drop to $604 in 2022. The population of Fort Peck remained relatively stable during this period, ranging from 683 to 781 residents, suggesting that changes in rent prices were likely influenced by factors other than population growth, such as local economic conditions or housing supply.
Looking at the most recent data, the average home price in 2023 was $343,839, showing a decrease from the 2022 peak of $372,960. However, in 2024, the average home price has rebounded to $359,902. This recent fluctuation coincides with a significant increase in federal interest rates, which rose from 1.68% in 2022 to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be influencing both home prices and buyer behavior in the current market.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Fort Peck will continue to show moderate growth, potentially reaching around $400,000 by 2029. However, this growth may be tempered by the current high interest rates. For rent prices, we expect a gradual increase, potentially reaching an average of $800 per month by 2029, assuming economic conditions remain stable and housing supply keeps pace with demand.
In conclusion, Fort Peck has demonstrated resilience in its housing market, with a strong preference for homeownership and steadily increasing property values. The inverse relationship between interest rates and homeownership rates is evident, with lower rates generally corresponding to higher ownership percentages. The rental market, while smaller, has shown volatility in both occupancy rates and prices. Moving forward, we anticipate continued growth in both home values and rent prices, albeit at a more moderate pace than seen in recent years, influenced by factors such as interest rates and local economic conditions.
