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Zip Code 59241: Rising Home Values and Strong 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
Zip code 59241, located in Hinsdale, Montana, has experienced interesting shifts in homeownership and housing prices over the past decade. This rural area, spanning 1,320.52 square miles, has seen fluctuations in its population and housing market dynamics.
The homeownership rate in zip code 59241 has shown resilience, with a general upward trend from 2013 to 2022. In 2013, the homeownership rate stood at 83%, and after some fluctuations, it reached 81% in 2022. This high rate of homeownership is notable for a rural area. Concurrently, average home prices have seen significant growth. From 2019 to 2022, average home prices increased from $151,784 to $226,511, representing a substantial 49.2% increase over just three years.
The relationship between federal interest rates and homeownership rates in this area appears to follow the general trend of lower interest rates encouraging homeownership. For instance, as federal interest rates remained low from 2013 to 2020 (ranging from 0.09% to 0.38%), homeownership rates in zip code 59241 remained relatively high, consistently above 74%. The slight dip in homeownership to 74% in 2018 and 2019 coincided with a period of rising interest rates, which peaked at 2.16% in 2019.
Renter percentages in zip code 59241 have fluctuated inversely to homeownership rates, as expected. The renter population peaked at 25% in 2018 and 2019, coinciding with the lowest homeownership rates. Average rent prices have shown moderate increases over time. In 2013, the average rent was $537, rising to $681 by 2021, an increase of 26.8% over eight years. However, there was a notable drop to $579 in 2022, possibly reflecting changing market conditions or local economic factors.
In 2023 and 2024, the housing market in zip code 59241 showed interesting developments. The average home price in 2023 was $211,949, a slight decrease from 2022's peak of $226,511. This trend continued into 2024, with the average home price at $215,598, showing a small recovery. These changes occurred against a backdrop of significantly higher federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially influencing buying patterns and home values.
Looking ahead, based on historical trends and current market conditions, we can project some potential scenarios for the next five years. Average home prices may continue to experience moderate growth, potentially reaching around $240,000 to $250,000 by 2029, assuming a steady but slower rate of appreciation compared to the rapid growth seen in 2019-2022. Average rent prices might stabilize and show modest increases, potentially reaching $700 to $750 by 2029, reflecting the area's economic conditions and housing demand.
In summary, zip code 59241 has maintained a strong homeownership base despite fluctuations in the housing market. The area has seen significant growth in average home prices, particularly from 2019 to 2022, followed by a slight cooling in 2023-2024. Rent prices have shown moderate increases over time, with some recent volatility. The interplay between federal interest rates, homeownership rates, and housing prices continues to shape the local real estate landscape, with the high interest rate environment of 2023-2024 potentially influencing future market dynamics.
