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Zip Code 59313: Fluctuating Home Values and Ownership Rates in Baker, 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 59313, located in Baker, Montana, is a rural area spanning 921.14 square miles. This expansive region has experienced fluctuating homeownership rates and housing market trends over the past decade. The area has seen a general increase in average home prices, while average rent prices have shown more variability.
The homeownership rate in zip code 59313 has remained relatively stable, with some minor fluctuations. In 2013, the homeownership rate was 71%, and by 2022, it stood at 72%. During this period, average home prices showed a significant upward trend. In 2016, the average home price was $143,047, and by 2022, it had risen to $235,882, representing a 65% increase over six years. This substantial growth in home values occurred despite relatively stable homeownership rates, suggesting that other factors, such as limited housing supply or increased demand, may have influenced the market.
Federal interest rates have played a role in homeownership trends in the area. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. During this period, homeownership rates in zip code 59313 fluctuated between 67% and 73%. The lowest homeownership rate of 67% was observed in 2018 when interest rates reached 1.83%, while the highest rate of 73% occurred in 2019 and 2020 when interest rates were 2.16% and 0.38%, respectively. This suggests that while low interest rates generally support homeownership, other local factors may have a more significant impact on this specific market.
Renter percentages in zip code 59313 have shown slight variations, ranging from 27% to 33% between 2013 and 2022. Average rent prices have generally increased during this period, albeit with some fluctuations. In 2013, the average rent was $625, rising to $742 by 2022, representing an 18.7% increase. The highest average rent was recorded in 2018 at $784, coinciding with the highest renter percentage of 33%. The population of the zip code remained relatively stable during this period, ranging from 2,475 to 2,616 residents, suggesting that changes in rental demand were not primarily driven by significant population shifts.
In 2023 and 2024, the housing market in zip code 59313 experienced a shift. The average home price in 2023 was $221,166, showing a 6.2% decrease from 2022. This downward trend continued into 2024, with the average home price further declining to $207,971, representing a total decrease of 11.8% from the 2022 peak. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates likely contributed to the cooling of the housing market in the area.
Looking ahead, predictive models suggest that average home prices in zip code 59313 may continue to experience some downward pressure in the short term due to the current high interest rate environment. However, as the market adjusts, prices are expected to stabilize and potentially show modest growth over the next five years. Average rent prices are projected to continue their gradual upward trend, possibly reaching around $800-$850 by 2029, assuming consistent economic conditions and housing demand in the area.
In summary, zip code 59313 has demonstrated resilience in homeownership rates despite significant increases in average home prices from 2016 to 2022. The recent cooling of the housing market, coinciding with rising interest rates, highlights the interplay between national economic factors and local market conditions. The rental market has shown steady growth, with average rents increasing alongside stable renter percentages. These trends underscore the dynamic nature of the housing market in this Montana zip code, reflecting both local economic factors and broader national influences.
