Loading Content...
Zip Code 59225: Rising Home Values and Ownership Rates in Rural Montana
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 59225, located in Frazer, Montana, is a rural area characterized by a small population and significant fluctuations in homeownership rates and housing prices over the past decade. The area has seen a general trend of increasing homeownership, rising average home prices, and varying average rent prices in recent years.
The homeownership rate in zip code 59225 has shown an overall upward trend from 2013 to 2022. In 2013, the homeownership rate was 62%, and it increased to 70% by 2022. This rise in homeownership coincided with a substantial increase in average home prices. The average home price in 2019 was $227,278, which rose dramatically to $380,188 by 2022, representing a 67% increase over just three years. This trend suggests that despite rising home prices, more residents were able to purchase homes, possibly due to other economic factors or local housing initiatives.
Federal interest rates have played a role in homeownership trends in zip code 59225. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable around 62-65%. As interest rates began to rise from 2017 to 2019 (1% to 2.16%), homeownership initially dipped to 58% in 2018 but then rebounded to 63% in 2019. Interestingly, the most significant jump in homeownership occurred between 2019 and 2021, rising from 63% to 73%, despite the volatility in interest rates during this period.
The renter population in zip code 59225 has generally decreased as homeownership increased. In 2013, 38% of residents were renters, which decreased to 29% by 2022. Average rent prices have shown volatility over this period. In 2013, the average rent was $475, which decreased to $357 in 2017, before rising again to $522 in 2022. This represents a 46% increase in average rent from 2017 to 2022. The fluctuations in rent prices and the decreasing percentage of renters could be attributed to the changing local economy and the shift towards homeownership.
In 2023 and 2024, the housing market in zip code 59225 experienced some changes. The average home price in 2023 was $347,167, showing a decrease from the 2022 peak. However, in 2024, the average home price increased slightly to $356,421. This occurred against the backdrop of rising interest rates, which reached 5.02% in 2023 and 5.33% in 2024, the highest levels in over a decade.
Looking ahead, based on the historical data and recent trends, we can forecast that average home prices in zip code 59225 may continue to experience moderate growth over the next five years, potentially reaching around $400,000 by 2029. Average rent prices are likely to follow a similar trajectory, potentially increasing to approximately $600 per month in the same timeframe. However, these projections are subject to various economic factors and local market conditions.
In summary, zip code 59225 has experienced a significant shift towards homeownership, with rising average home prices and fluctuating rent prices. The area has shown resilience in homeownership growth despite increasing home prices and interest rates, suggesting strong local demand for housing ownership. The coming years may see continued, albeit more moderate, growth in both home prices and rents, reflecting the area's evolving housing market dynamics.
