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Zip Code 59451: Rural Montana's Shifting Home Values and Ownership Patterns
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 59451, located in Hilger, Montana, has experienced significant shifts in homeownership and housing prices over the past decade. This rural area has seen fluctuations in its population and housing market, with notable changes in the balance between owners and renters.
The homeownership rate in zip code 59451 has shown a dramatic decline over the years. In 2013, the area boasted a high 85% homeownership rate. However, this figure steadily decreased, reaching a low of 49% in 2021 and 2022. This substantial drop of 36 percentage points in less than a decade indicates a significant shift in the local housing market dynamics. Concurrently, average home prices in the area have seen a sharp increase. From 2016 to 2022, average home prices rose from $176,558 to $377,497, representing a remarkable 114% increase in just six years.
The relationship between federal interest rates and homeownership rates in this zip code appears to follow expected trends. As interest rates remained low from 2013 to 2015, hovering around 0.1%, homeownership rates were high, above 80%. However, as interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, homeownership rates declined significantly. This inverse relationship suggests that higher interest rates may have contributed to the decrease in homeownership, possibly making mortgages less affordable for local residents.
As homeownership declined, the percentage of renters in zip code 59451 naturally increased. The renter-occupied housing units rose from 14% in 2013 to 51% in 2021, mirroring the decline in homeownership. Interestingly, average rent prices have shown a moderate increase during this period. In 2013, the average rent was $649, which increased to $676 by 2022, representing a 4.2% rise over nine years. This relatively modest increase in rent prices, compared to the substantial rise in home prices, may have contributed to the shift towards renting in the area.
In 2023 and 2024, average home prices in zip code 59451 continued to rise, reaching $384,442 in 2023 and slightly decreasing to $381,496 in 2024. This represents a 1.8% increase from 2022 to 2023, followed by a minor 0.8% decrease from 2023 to 2024. Concurrently, federal interest rates have increased significantly, rising to 5.02% in 2023 and further to 5.33% in 2024, potentially impacting homebuying decisions in the area.
Looking ahead, based on the observed trends, we can anticipate continued fluctuations in the housing market of zip code 59451. Average home prices are likely to stabilize or experience moderate growth over the next five years, potentially reaching around $400,000 by 2029. Rent prices may continue their gradual upward trend, possibly increasing to approximately $725 by 2029. However, these projections are subject to various economic factors and local market conditions.
In summary, zip code 59451 has undergone a significant transformation in its housing landscape. The sharp decline in homeownership, coupled with substantial increases in home prices and a shift towards renting, reflects broader economic trends and changing preferences in the area. The interplay between interest rates, home prices, and rental markets continues to shape the housing dynamics in this Montana community.
