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Zip Code 59230: Rising Home Values and Ownership in Rural 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
The zip code 59230, representing St. Marie in Montana, presents an intriguing case study of housing trends in a rural American setting. This area has experienced notable shifts in homeownership rates and property values over the past decade, reflecting broader economic patterns and local dynamics.
From 2013 to 2022, the homeownership rate in zip code 59230 saw a significant increase, rising from 64% to 73%. This upward trend in homeownership coincided with a substantial rise in average home prices. In 2016, the average home price was $152,078, which steadily climbed to $240,709 by 2022, representing a remarkable 58.3% increase over six years. This parallel growth suggests a strong correlation between rising property values and the desire for homeownership in the area.
The relationship between federal interest rates and homeownership rates in St. Marie follows a generally inverse pattern. As interest rates remained low from 2013 to 2021, ranging from 0.08% to 1.83%, homeownership rates increased from 64% to 74%. This trend aligns with the economic principle that lower interest rates make mortgages more affordable, thereby encouraging homeownership.
Conversely, the renter population in zip code 59230 has seen a decline, dropping from 36% in 2013 to 27% in 2022. Despite this decrease, average rent prices have shown a steady increase. In 2013, the average rent was $520, which rose to $815 by 2022, marking a 56.7% increase. This upward trend in rent prices, despite a shrinking renter population, could be attributed to various factors such as improved rental property quality or limited rental inventory.
Looking at the most recent data, the average home price in zip code 59230 slightly decreased to $238,660 in 2023 but showed a minor uptick to $239,699 in 2024. This recent stabilization occurs against the backdrop of significantly higher federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher rates may be contributing to a cooling effect on home price growth in the area.
Applying predictive models to forecast trends for the next five years, we anticipate a moderate increase in average home prices, potentially reaching around $260,000 by 2029. This projection factors in the current higher interest rate environment, which may temper rapid price growth. For rent prices, the forecast suggests a continued upward trajectory, potentially reaching an average of $950 to $1,000 per month by 2029, assuming the current trends persist.
In summary, zip code 59230 has demonstrated a strong trend towards homeownership, with rising property values and increasing owner-occupancy rates. The inverse relationship between low interest rates and higher homeownership rates has been evident. Despite a decreasing renter population, rent prices have shown significant growth. The recent stabilization in home prices, coupled with higher interest rates, suggests a potential shift in the housing market dynamics of this Montana community.
