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Zip Code 59443: Fort Shaw's Rising Home Values and Stable Ownership Amidst Population Decline
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
Fort Shaw, located in zip code 59443 in Montana, is a small rural community with a population that has been steadily declining over the past decade. This area has experienced notable shifts in homeownership rates and housing prices, reflecting broader economic trends and local market conditions. The homeownership rate in Fort Shaw has remained relatively stable over the years, with slight fluctuations. In 2013, the homeownership rate was 82%, and by 2022, it had slightly decreased to 79%. During this period, average home prices in the area saw a significant increase. In 2013, the average home price was $201,441, and by 2022, it had risen to $444,833, representing a substantial 120.8% increase over nine years.
Federal interest rates have played a role in shaping homeownership trends in Fort Shaw. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), the homeownership rate remained relatively stable, hovering around 80%. As interest rates began to rise more significantly from 2017 onwards, there was a slight decrease in homeownership, dropping from 83% in 2017 to 79% in 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in Fort Shaw have shown some variability, ranging from 17% to 23% between 2013 and 2022. Interestingly, average rent prices have increased substantially during this period. In 2013, the average rent was $517, and by 2022, it had risen to $740, marking a 43.1% increase. This significant rise in rent prices occurred despite the area's declining population, which dropped from 492 in 2013 to 357 in 2022. The increase in rent prices may be attributed to factors such as improved housing quality or limited rental supply in the area.
In 2023 and 2024, Fort Shaw experienced a slight dip in average home prices, followed by a modest increase. The average home price in 2023 was $441,893, showing a small decrease from 2022. However, in 2024, the price rebounded to $458,945, indicating a 3.9% increase from the previous year. It's worth noting that during this period, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and housing market dynamics in the area.
Looking ahead, based on the historical data and current trends, we can expect average home prices in Fort Shaw to continue their upward trajectory, albeit at a more moderate pace. Projecting the trend over the next five years, average home prices could potentially reach around $550,000 by 2029. Similarly, average rent prices are likely to continue rising, potentially reaching approximately $900 per month by 2029, assuming the current rate of increase persists.
In summary, Fort Shaw has experienced a significant increase in both average home prices and rent prices over the past decade, despite a declining population. The homeownership rate has remained relatively stable, with slight fluctuations influenced by changes in federal interest rates. The recent uptick in interest rates may pose challenges for potential homebuyers in the coming years, potentially affecting the balance between homeownership and renting in this rural Montana community.
