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Zip Code 59247: Rising Home Values and Ownership Trends in Sparsely Populated Medicine Lake, 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 59247, located in Medicine Lake, Montana, is characterized by its exceptionally low population density of just 1 person per square mile. This rural area has experienced notable changes in homeownership and housing trends over the past decade. The homeownership rate in zip code 59247 has shown a general upward trend, increasing from 74% in 2013 to 78% in 2022. This rise in homeownership coincided with significant fluctuations in average home prices. From 2019 to 2022, average home prices in the area increased substantially, rising from $104,637 to $155,852, representing a 49% 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. As interest rates remained low between 2013 and 2021 (ranging from 0.08% to 1.83%), homeownership rates in the zip code maintained a relatively high level, mostly above 70%. The slight dip in homeownership to 70% in 2017 coincided with a modest increase in interest rates to 1%.
Renter percentages in zip code 59247 have shown an overall declining trend, decreasing from 28% in 2014 to 21% in 2022. Average rent prices have experienced significant fluctuations during this period. Average rent peaked at $1,464 in 2017 before declining to $959 in 2022, a 34% decrease. This decline in average rent coincided with a slight increase in population from 194 in 2017 to 235 in 2022, suggesting that other factors beyond population growth may be influencing rental prices in this area.
In 2023 and 2024, average home prices in zip code 59247 experienced a slight decline, dropping from $155,852 in 2022 to $155,091 in 2023, and further to $149,152 in 2024. This represents a 4.3% decrease over two years. Concurrently, federal interest rates rose sharply to 5.02% in 2023 and 5.33% in 2024, potentially impacting home buying activity in the area.
Looking ahead, based on recent trends, average home prices in zip code 59247 are expected to stabilize or potentially decrease slightly over the next five years, assuming interest rates remain elevated. Average rent prices may continue to fluctuate but are likely to remain below their 2017 peak, possibly ranging between $900 and $1,100 per month.
In summary, zip code 59247 has experienced a steady increase in homeownership rates despite rising home prices, potentially driven by historically low interest rates until recently. The area has also seen a decline in the percentage of renters, coupled with fluctuating but ultimately decreasing average rent prices. The recent uptick in interest rates and slight decline in home prices suggest a potential cooling of the local housing market, which may impact both ownership and rental trends in the coming years.
