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Zip Code 59635: Rising Home Values and Ownership Rates in Spokane Creek, 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 59635, located in Spokane Creek, Montana, presents an intriguing landscape of homeownership and rental trends over the past decade. This area has experienced fluctuations in both ownership percentages and average home prices, with a general trend towards increased homeownership in recent years. The average home prices have shown a consistent upward trajectory, while average rent prices have displayed more variability.
The relationship between homeownership rates and average home prices in this zip code reveals some interesting patterns. In 2013, when the homeownership rate was 80%, the average home price was $187,002. As home prices steadily increased, reaching $251,188 in 2019, the homeownership rate dipped to 79%. However, a significant shift occurred in 2020, with homeownership jumping to 85% despite average home prices rising to $273,353. This trend continued into 2022, with homeownership at 83% and average home prices reaching $395,795, suggesting that rising property values did not deter homeownership in this area.
Federal interest rates appear to have influenced homeownership rates in zip code 59635. The period from 2013 to 2016 saw relatively stable interest rates below 0.5%, corresponding with homeownership rates between 74% and 80%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates initially decreased to 72% in 2017 but rebounded to 79% by 2019. The sharp drop in interest rates to 0.38% in 2020 coincided with a significant increase in homeownership to 85%, supporting the notion that lower interest rates can stimulate home buying activity.
Renter percentages and average rent prices in this zip code have shown an inverse relationship at times. In 2013, with 20% of residents renting, the average rent was $899. As the renter percentage increased to 28% in 2017, average rent rose slightly to $890. However, by 2019, when the renter percentage decreased to 21%, average rent increased to $965. This suggests that factors beyond supply and demand, such as local economic conditions or housing quality improvements, may influence rent prices in this area.
In 2023 and 2024, average home prices in zip code 59635 continued their upward trend, reaching $402,270 in 2023 and $411,002 in 2024. This represents a 1.6% increase from 2023 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, marking the highest rates in over a decade. Despite these higher interest rates, the continued rise in home prices suggests ongoing demand in the area.
Applying predictive models to forecast 5-year trends, we anticipate average home prices in zip code 59635 to continue their upward trajectory, potentially reaching around $480,000 by 2029. Average rent prices, which have shown more volatility, are projected to increase moderately, possibly reaching approximately $1,100 per month in the same timeframe. These projections assume a continuation of current economic conditions and local market dynamics.
In summary, zip code 59635 has demonstrated a robust housing market with increasing homeownership rates despite rising home prices. The area has shown resilience to higher interest rates, maintaining strong homeownership levels. While rental markets have experienced some fluctuations, both the ownership and rental sectors appear to be on an upward trajectory in terms of prices. The coming years are likely to see continued growth in property values and rental costs, reflecting the area's desirability and economic stability.
