Loading Content...
Zip Code 59632: Rural Montana's Rising Home Values and Stable Ownership in Elkhorn
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 59632, located in Elkhorn, Montana, presents an intriguing case study of homeownership and housing market trends. This rural area has experienced notable fluctuations in its ownership rates and housing prices over the past decade, reflecting the dynamic nature of Montana's real estate market.
The homeownership rate in zip code 59632 has remained relatively stable, hovering around 75-76% from 2013 to 2022. However, this stability masks some interesting year-to-year variations. For instance, the ownership rate peaked at 81% in 2013 before declining to 73% in 2020, only to rebound to 76% by 2022. Simultaneously, average home prices have shown a consistent upward trend. In 2010, the average home price was $132,715, which more than doubled to $319,339 by 2022. This significant increase in home values did not appear to have a strong negative impact on homeownership rates, suggesting other factors at play in maintaining the high proportion of owner-occupied homes in the area.
Federal interest rates have played a role in shaping homeownership trends in zip code 59632. The period from 2010 to 2015 saw historically low interest rates, ranging from 0.09% to 0.18%. During this time, homeownership rates remained high, likely due to the increased affordability of mortgages. As interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, there was a slight dip in homeownership rates, though they remained resilient overall. This suggests that while interest rates influence homeownership, other local factors such as job market stability and community attachment may have helped maintain high ownership levels in this Montana zip code.
Renter percentages in zip code 59632 have shown a slight increase over time, moving from 19% in 2013 to 24% in 2022. This shift coincides with fluctuations in average rent prices. In 2013, the average rent was $867, which peaked at $995 in 2016 before declining to $688 in 2022. Interestingly, the population of the zip code has also fluctuated, from a high of 3,059 in 2010 to a low of 2,435 in 2019, before rebounding to 3,044 in 2022. These population changes may have influenced the rental market, with periods of population decline potentially leading to decreased rental demand and lower rents.
Looking at the most recent data, average home prices in zip code 59632 continued their upward trajectory, reaching $331,817 in 2023 and $339,393 in 2024. This represents a 3.9% increase from 2022 to 2023 and a further 2.3% increase from 2023 to 2024. Notably, federal interest rates also saw a significant rise, jumping to 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homeownership rates and home price growth in the area.
Applying predictive models to forecast 5-year trends, we anticipate continued growth in average home prices for zip code 59632, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach approximately $380,000 to $400,000 by 2029. Rent prices, which have shown more volatility, are projected to stabilize and potentially increase moderately, possibly reaching an average of $750 to $800 per month by 2029.
In summary, zip code 59632 in Elkhorn, Montana, has demonstrated resilience in homeownership rates despite significant increases in average home prices. The area has maintained a high proportion of owner-occupied homes, even as it navigated fluctuations in population and economic conditions. The recent sharp rise in interest rates may present new challenges for homeownership, but the strong foundation of existing homeowners suggests the area may continue to favor ownership over renting in the coming years. The interplay between population changes, housing prices, and rental rates will be crucial in shaping the future real estate landscape of this Montana community.
