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Zip Code 59480: Stockett's Rising Home Values and Ownership Rates
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 59480, located in Stockett, Montana, presents an intriguing case study of homeownership and housing market trends. This rural area has experienced notable fluctuations in its ownership percentages and housing prices over the past decade, reflecting the dynamic nature of its real estate market.
The homeownership rate in zip code 59480 has shown a general upward trend, increasing from 74% in 2017 to 86% in 2022. This significant rise in homeownership coincides with a substantial increase in average home prices. In 2014, the average home price was $140,141, which steadily climbed to $282,720 by 2022, representing a remarkable 101.7% increase over eight years. This parallel growth suggests a strong correlation between rising property values and increased homeownership in the area.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 59480. The period from 2014 to 2016 saw historically low interest rates, hovering around 0.09% to 0.40%. During this time, homeownership rates remained relatively stable at around 79-80%. However, as interest rates began to rise from 2017 onwards, reaching 1.83% in 2018, there was a slight dip in homeownership to 77%. Interestingly, despite further increases in interest rates, homeownership rebounded strongly, reaching 86% by 2022. This suggests that other local factors may have offset the potential negative impact of rising interest rates on homeownership in this particular zip code.
Conversely, the renter population in zip code 59480 has seen a declining trend, dropping from 26% in 2017 to 14% in 2022. This decrease in renters corresponds with fluctuating average rent prices. In 2017, the average rent was $1,126, which decreased to $767 by 2022, a 31.9% reduction. This significant drop in rent prices, coupled with the declining renter population, suggests a shift in the local housing market favoring homeownership over renting. The population of the zip code has remained relatively stable during this period, fluctuating between 766 and 841 residents, indicating that changes in population size have not been a primary driver of these trends.
Looking at the most recent data, the average home price in zip code 59480 continued its upward trajectory, reaching $297,700 in 2023 and further increasing to $317,101 in 2024. This represents a 12.2% increase from 2022 to 2024. Notably, federal interest rates also saw a significant rise, climbing to 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, which typically discourage homebuying, the continued increase in home prices suggests strong demand in this local market.
Applying predictive models to forecast the next five years, we anticipate that average home prices in zip code 59480 will continue to rise, potentially reaching around $380,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. For rent prices, the forecast is less certain due to recent fluctuations. However, if the current trend of declining renter population continues, we may see average rent prices stabilize or slightly decrease, potentially settling around $700-$750 per month by 2029.
In summary, zip code 59480 has demonstrated a strong shift towards homeownership, with rising property values and a decreasing renter population. The area has shown resilience in its housing market, with home prices continuing to climb even in the face of rising interest rates. These trends suggest a robust local real estate market with a growing preference for homeownership among residents.
