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Zip Code 59324: Rising Home Values and Shifting 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 59324, located in Ekalaka, Montana, is a rural area with unique demographic trends. Over the past decade, this region has experienced notable shifts in homeownership rates and housing prices, reflecting the changing dynamics of its real estate market.
The homeownership rate in zip code 59324 has shown a significant decline from 2013 to 2022. In 2013, 82% of residents were homeowners, but by 2022, this figure had dropped to 63%. This downward trend in homeownership coincides with a substantial increase in average home prices. In 2016, the average home price was $80,056, which rose steadily to reach $150,656 by 2022, representing an 88% increase over six years.
Federal interest rates appear to have influenced homeownership rates in this area. From 2013 to 2015, when interest rates were extremely low (0.11% to 0.13%), homeownership rates remained high, peaking at 87% in 2015. As interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, homeownership rates declined. 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 59324 has increased from 18% in 2013 to 37% in 2022. This rise in renters corresponds with an increase in average rent prices. In 2013, the average rent was $432, which increased to $635 by 2022, a 47% rise. The population growth from 766 in 2013 to 806 in 2022 may have contributed to the increased demand for rental properties and subsequent rise in rent prices.
In 2023 and 2024, the average home prices in zip code 59324 continued to rise, reaching $161,412 in 2023 and $173,433 in 2024. This represents a 15% increase from 2022 to 2024. Interestingly, federal interest rates also saw a significant jump, rising to 5.02% in 2023 and 5.33% in 2024, which are the highest rates seen in over a decade.
Looking ahead, based on the observed trends, we can predict that average home prices in zip code 59324 will continue to rise over the next five years, potentially reaching around $200,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $700 per month within the same timeframe. However, the rate of increase may slow down due to the higher interest rates, which could dampen demand.
In summary, zip code 59324 has experienced a significant shift from homeownership to renting over the past decade, accompanied by substantial increases in both home prices and rent. The interplay between federal interest rates, population changes, and housing demand has shaped these trends, with recent data suggesting a continuation of rising prices despite higher interest rates.
