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Zip Code 59404: Rising Home Values and Ownership Trends in Great Falls, Montana's Scenic River Area
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 59404, located in Great Falls, Montana, showcases an interesting mix of housing market dynamics over the past decade. This area has seen significant shifts in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 59404 has shown a notable increase over the years, rising from 80% in 2015 to 84% in 2022. This upward trend in homeownership coincides with a substantial increase in average home prices. In 2010, the average home price in this area was $188,173, which steadily climbed to $332,379 by 2022, representing a 76.6% increase over 12 years. This correlation suggests that despite rising home prices, residents in this zip code have maintained a strong preference for homeownership.
The relationship between federal interest rates and homeownership rates in zip code 59404 appears to follow the well-established trend of lower interest rates encouraging homeownership. For instance, as interest rates remained low from 2010 to 2016 (ranging from 0.1% to 0.4%), the homeownership rate in the area increased from 81% in 2013 to 83% by 2017. This trend continued even as interest rates began to rise moderately, with homeownership reaching 84% by 2020 and maintaining that level through 2022.
Renter percentages in zip code 59404 have shown a corresponding decrease, dropping from 20% in 2015 to 16% in 2022. Interestingly, this decline in the renter population has been accompanied by a significant increase in average rent prices. The average rent rose from $749 in 2013 to $1,172 in 2022, a 56.5% increase. This trend suggests that while fewer people are renting, those who do are facing higher costs, possibly due to limited rental inventory or improved quality of available rental properties.
Looking at the most recent data, the average home price in zip code 59404 reached $351,221 in 2023 and further increased to $366,173 in 2024. This represents a 10.2% increase from 2022 to 2024, indicating a continued strong housing market in the area. Notably, these price increases have occurred despite a sharp rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024.
Applying predictive models to forecast 5-year trends, we can expect the average home prices in zip code 59404 to continue their upward trajectory, potentially reaching around $425,000 by 2029. Average rent prices are also likely to increase, possibly surpassing $1,400 per month within the same timeframe. These projections are based on historical trends and assume relatively stable economic conditions.
In summary, zip code 59404 in Great Falls, Montana, has demonstrated a strong preference for homeownership, with rates increasing despite rising home prices. The rental market, while shrinking in terms of percentage, has seen significant increases in average rent prices. The area's housing market has shown resilience and growth, even in the face of rising interest rates, suggesting a robust local economy and continued demand for housing in this zip code.
