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Zip Code 59436: Rising Home Values and Ownership Rates in Fairfield, 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 59436, located in Fairfield, Montana, has experienced notable shifts in homeownership rates and property values over the past decade. This rural area, covering 314.27 square miles, has seen a general trend of increasing population and fluctuating homeownership rates, accompanied by significant growth in average home prices and rent.
The homeownership rate in zip code 59436 has shown some variability but maintained a relatively high level throughout the observed period. In 2013, the area had a 79% homeownership rate, which dipped to 71% in 2016 and 2018. However, by 2022, it had rebounded to 79%. This fluctuation coincided with a substantial increase in average home prices. From 2013 to 2022, average home prices rose from $153,717 to $363,001, representing a remarkable 136% increase over nine years.
Federal interest rates have played a role in homeownership trends in the area. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%. During this time, homeownership rates in zip code 59436 actually decreased slightly, contrary to the typical trend of lower interest rates encouraging homeownership. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates stabilized and then increased, reaching 79% by 2022 when the interest rate was 1.68%.
Renter percentages in zip code 59436 have inversely mirrored homeownership rates, ranging from a low of 20% in 2021 to a high of 29% in 2016 and 2018. Average rent prices have generally increased over time, albeit with some fluctuations. In 2013, the average rent was $736, which rose to $975 by 2021, representing a 32.5% increase. However, there was a notable drop to $808 in 2022. The population growth from 1,689 in 2013 to 2,195 in 2022 may have contributed to the overall upward pressure on rent prices.
In 2023 and 2024, average home prices in zip code 59436 continued their upward trajectory, reaching $371,424 in 2023 and $389,992 in 2024. This represents a further 7.4% increase from 2022 to 2024. Interestingly, this growth occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These higher interest rates would typically be expected to cool the housing market, but local factors in Fairfield appear to be sustaining home price growth.
Looking ahead, based on the historical data and current trends, we can project continued growth in both average home prices and rent for zip code 59436 over the next five years. Average home prices could potentially reach or exceed $450,000 by 2029, assuming a conservative annual growth rate of 3-4%. Average rent prices may increase to around $1,100-$1,200 per month, factoring in historical growth rates and accounting for potential market fluctuations.
In summary, zip code 59436 has demonstrated resilience in homeownership rates despite significant increases in home prices. The area has seen substantial property value appreciation, with average home prices more than doubling since 2013. Rent prices have also shown an overall upward trend, albeit with some recent volatility. The continued rise in both home prices and population, even in the face of increasing interest rates, suggests a robust local housing market with potential for further growth in the coming years.
