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Zip Code 59525: Rising Home Values and Declining Ownership 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 59525, located in Gildford, Montana, is a rural area spanning 321.22 square miles. This expansive region has seen fluctuating trends in homeownership and housing prices over the past decade. The area has experienced a general decline in homeownership rates, while average home prices have shown a significant upward trajectory.
The homeownership rate in zip code 59525 has gradually decreased from 84% in 2014 to 72% in 2022. During this same period, average home prices have risen substantially. In 2015, the average home price was $147,125, which increased to $281,593 by 2022, representing a 91% increase over seven years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may be making homeownership less accessible for some residents in the area.
Federal interest rates have played a role in homeownership trends in zip code 59525. From 2013 to 2016, when interest rates were relatively low (ranging from 0.09% to 0.4%), homeownership rates remained high, between 79% and 84%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined to 72%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The percentage of renters in zip code 59525 has increased from 16% in 2014 to 27% in 2022. Interestingly, average rent prices have shown volatility during this period. In 2015, the average rent was $1,442, which decreased to $606 by 2022. This significant drop in average rent prices, despite an increase in the renter population, could be attributed to various factors such as changes in local economic conditions or shifts in the type of rental properties available.
In 2023 and 2024, the average home prices in zip code 59525 showed a slight decline followed by a modest increase. The average home price in 2023 was $267,578, decreasing from the 2022 figure, but then rose to $275,482 in 2024. This recent trend occurs alongside higher federal interest rates, which were 5.02% in 2023 and 5.33% in 2024, potentially impacting home buying decisions in the area.
Looking ahead, predictive models suggest that average home prices in zip code 59525 may continue to rise over the next five years, albeit at a more moderate pace than seen in the early 2020s. Average rent prices, which have been on a downward trend, might stabilize or see a slight increase as the rental market adjusts to changing demand and economic conditions.
In summary, zip code 59525 has experienced a notable shift in its housing landscape over the past decade. The area has seen a decrease in homeownership rates coupled with a significant increase in average home prices. Simultaneously, the renter population has grown while average rent prices have decreased. These trends, influenced by factors such as federal interest rates and local economic conditions, paint a picture of a changing housing market in this Montana community.
