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Zip Code 59450: Rising Home Values and Ownership Trends 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 59450, located in Highwood, Montana, is a small rural community with a population of 261 as of 2022. This area has experienced fluctuations in homeownership rates and housing prices over the past decade. The ownership percentage has shown a general upward trend, while average home prices have seen significant increases, particularly in recent years. Average rent prices have also risen, albeit with some variability.
The homeownership rate in zip code 59450 has generally increased from 2013 to 2022. In 2013, the ownership rate was 74%, which rose to 80% by 2019, the highest point in the observed period. However, there was a slight decrease to 74% by 2022. Concurrently, average home prices have shown a substantial upward trend. From 2016 to 2022, average home prices more than doubled, increasing from $165,379 to $334,246. This sharp rise in home values, particularly the 52% increase from 2020 to 2022, may have contributed to the slight dip in homeownership rates during this period as affordability became an issue for some potential buyers.
Federal interest rates have played a role in homeownership trends in zip code 59450. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 2.16%. This low-interest environment likely supported the increase in homeownership rates during this time, as mortgage financing became more affordable. The ownership rate peaked at 80% in 2019 when the federal interest rate was 2.16%. However, as interest rates began to rise more sharply in 2022 to 1.68%, we see a corresponding decrease in the homeownership rate to 74%.
Renter percentages in zip code 59450 have fluctuated inversely to homeownership rates, reaching a low of 19% in 2019 before increasing to 26% by 2022. Average rent prices have shown an overall upward trend, rising from $604 in 2013 to $1,026 in 2022, representing a 70% increase. Despite this significant rise in rent prices, the renter population has remained relatively stable, suggesting that local economic factors or housing availability may be influencing renting patterns more than price alone.
In 2023 and 2024, average home prices in zip code 59450 showed some volatility. The average home price decreased slightly from $334,246 in 2022 to $322,936 in 2023, representing a 3.4% decline. However, prices rebounded in 2024, reaching $337,493, a 4.5% increase from the previous year. This recovery occurred despite the federal interest rate rising to 5.33% in 2024, which typically would be expected to cool the housing market.
Looking ahead, based on the historical data and current trends, we can project that average home prices in zip code 59450 may continue to rise over the next five years, but at a more moderate pace. The average home price could potentially reach around $375,000 to $400,000 by 2029. Average rent prices are also likely to increase, potentially reaching $1,200 to $1,300 per month in the same timeframe. However, these projections assume relatively stable economic conditions and no major shifts in local market dynamics.
In conclusion, zip code 59450 has demonstrated resilience in its housing market, with generally increasing homeownership rates and rising property values. The most significant trends observed include the substantial growth in average home prices, particularly from 2020 to 2022, and the overall increase in average rent prices. The interplay between federal interest rates, homeownership rates, and housing prices highlights the complex dynamics at work in this local market. Moving forward, while growth is expected to continue, it may be at a more measured pace, reflecting broader economic conditions and local market factors.
