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Zip Code 59301: Rising Home Values and Shifting Ownership Trends in Miles City, 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 59301, located in Miles City, Montana, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area has seen a gradual decrease in owner-occupied housing alongside increases in both average home prices and average rent prices.
The homeownership rate in zip code 59301 has shown a declining trend from 2013 to 2022. In 2013, 69% of housing units were owner-occupied, but by 2022, this figure had decreased to 64%. During this same period, average home prices in the area saw significant growth. In 2015, the average home price was $139,213, and by 2022, it had risen to $257,643, representing an impressive 85% increase over seven years.
The relationship between federal interest rates and homeownership rates in this zip code is noteworthy. From 2013 to 2016, when interest rates were relatively low (ranging from 0.11% to 0.40%), homeownership rates remained stable at around 68-69%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined to 64%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Conversely, the percentage of renters in zip code 59301 has increased from 31% in 2013 to 36% in 2022. This rise in the renter population coincides with a substantial increase in average rent prices. In 2013, the average rent was $603, but by 2022, it had climbed to $907, representing a 50% increase over nine years. The population in the zip code has remained relatively stable during this period, fluctuating between 9,734 and 10,151 residents, suggesting that the increase in rent prices is not primarily driven by population growth.
Looking at the most recent data, the average home price in zip code 59301 continued to rise in 2023, reaching $264,235, and further increased to $266,771 in 2024. This represents a modest 1% increase from 2023 to 2024. Notably, federal interest rates have also increased significantly, rising from 5.02% in 2023 to 5.33% in 2024, potentially impacting homeownership affordability.
Based on historical trends and current market conditions, we can project future housing market trends for zip code 59301. Over the next five years, average home prices are expected to continue their upward trajectory, albeit at a potentially slower rate due to higher interest rates. We might anticipate average home prices reaching around $290,000 to $300,000 by 2029. Average rent prices are also likely to increase, potentially reaching $1,100 to $1,200 per month by 2029, assuming the current trends persist.
In summary, zip code 59301 has experienced a shift towards more renter-occupied housing, with a corresponding decrease in homeownership rates. This trend has occurred alongside significant increases in both average home prices and average rent prices. The impact of rising federal interest rates appears to have influenced homeownership rates, potentially making home purchases less affordable for some residents. As the area continues to evolve, it will be crucial to monitor these trends and their effects on the local housing market and community dynamics.
