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Zip Code 59416: Brady's Fluctuating Home Values and Ownership Rates in Montana's Rural Landscape
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 59416, located in Brady, Montana, presents an interesting case study of housing trends in a small rural community. This area has experienced fluctuations in homeownership rates and housing prices over the past decade, reflecting broader economic shifts and local demographic changes.
The homeownership rate in zip code 59416 has shown notable variations from 2013 to 2022. In 2013, the area had a 75% homeownership rate, which increased to a peak of 80% in 2019. However, by 2022, this rate had declined to 66%. Concurrently, average home prices have shown a consistent upward trend. In 2013, the average home price was $142,015, which steadily increased to $324,543 by 2022, representing a significant 128% increase over this period.
Federal interest rates appear to have influenced homeownership rates in this zip code. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership rates remained relatively high, peaking at 80% in 2019. However, as interest rates began to rise more sharply from 2017 onwards, reaching 1.68% in 2022, we observed a decline in homeownership rates to 66% by 2022.
Renter percentages and average rent prices in zip code 59416 have shown an inverse relationship to homeownership trends. As homeownership decreased from 80% in 2019 to 66% in 2022, the percentage of renters increased from 19% to 34%. Average rent prices, however, have been volatile. They peaked at $1,298 in 2013, dropped to $592 in 2015, and then fluctuated, reaching $699 in 2022. This volatility might be attributed to the small population size (271 in 2022) where individual rental changes can significantly impact average figures.
In 2023 and 2024, average home prices in zip code 59416 showed a slight decrease followed by an increase. The average home price in 2023 was $322,115, a marginal decrease from 2022. However, in 2024, the price rose to $336,352, indicating a return to the upward trend. Notably, federal interest rates increased significantly to 5.02% in 2023 and further to 5.33% in 2024, which may impact future homeownership rates and housing market dynamics.
Looking ahead, based on historical trends and current economic conditions, we can predict that average home prices in zip code 59416 will continue to rise moderately over the next five years, potentially reaching around $375,000 by 2029. Rent prices, given their historical volatility, are more challenging to predict but may stabilize around $800-$900 per month, assuming no significant changes in local economic conditions or housing supply.
In summary, zip code 59416 has experienced a gradual shift from high homeownership to increased renting, coupled with rising home values. The interplay between federal interest rates, local economic factors, and demographic changes has shaped these trends. The recent uptick in home prices, despite higher interest rates, suggests a resilient local housing market, but future trends will depend on broader economic conditions and local development patterns.
