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Zip Code 59259: Rising Home Values and High Ownership Rates 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 59259, located in Richey, Montana, offers a unique glimpse into the dynamics of a small rural community. This area has experienced significant fluctuations in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local demographic shifts.
The homeownership rate in zip code 59259 has shown a general upward trend from 2013 to 2022, with some fluctuations. In 2013, the ownership rate stood at 72%, increasing to a peak of 82% in 2020 before settling at 80% in 2022. This trend coincides with notable changes in average home prices. From 2016 to 2022, average home prices in the area rose from $118,772 to $188,321, representing a substantial 58.6% increase over six years. The most dramatic rise occurred between 2020 and 2022, with prices jumping from $125,829 to $188,321, a 49.7% increase in just two years.
The relationship between federal interest rates and homeownership rates in this zip code shows some interesting patterns. From 2013 to 2020, as interest rates remained relatively low, ranging from 0.09% to 2.16%, homeownership rates generally increased. The peak ownership rate of 82% in 2020 coincided with a sharp drop in interest rates to 0.38%. However, as interest rates began to rise significantly in 2022 to 1.68%, there was a slight decrease in homeownership to 80%, suggesting that higher interest rates may have started to impact affordability.
Renter percentages in zip code 59259 have generally decreased as homeownership rates increased. The renter population dropped from 28% in 2013 to 20% in 2022. Interestingly, average rent prices have shown a downward trend despite the decrease in renters. In 2013, the average rent was $742, which decreased to $571 by 2022, a 23% reduction. This trend could be attributed to the area's declining population, which fell from 531 in 2013 to 480 in 2022, potentially reducing demand for rental properties.
Looking at the most recent data, average home prices in zip code 59259 reached $183,721 in 2023 and further increased to $195,046 in 2024. This represents a 6.2% increase from 2023 to 2024, indicating continued growth in the housing market. Concurrently, federal interest rates rose to 5.02% in 2023 and 5.33% in 2024, marking a significant increase from previous years.
Applying predictive models to forecast 5-year trends, we can expect average home prices in zip code 59259 to continue their upward trajectory, potentially reaching around $240,000 by 2029. This projection is based on the historical growth rate and assumes continued economic stability. Average rent prices, however, may stabilize or show a slight increase, potentially reaching around $600 by 2029, as the market adjusts to population changes and housing demand.
In summary, zip code 59259 has experienced a notable increase in homeownership rates and average home prices over the past decade, particularly from 2020 to 2022. The area has seen a decrease in its renter population and average rent prices, likely influenced by overall population decline. Recent data shows continued growth in home prices despite rising interest rates, suggesting a resilient local housing market. Future trends indicate potential for further increases in home values and a stabilization of rent prices in this Montana community.
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