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Zip Code 59643: Soaring Home Values and High Ownership Rates 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 59643, located in Toston, Montana, has experienced significant changes in homeownership rates and property values over the past decade. This rural area has seen a steady increase in population and a shift towards higher homeownership rates, accompanied by substantial growth in average home prices. The ownership percentage in zip code 59643 has shown a strong upward trend, rising from 85% in 2013 to 91% in 2022. This increase in homeownership coincided with a dramatic rise in average home prices. In 2013, the average home price was $149,495, which more than doubled to $427,828 by 2022. This represents a remarkable 186% increase over nine years. The relationship between ownership rates and home prices suggests that as property values increased, more residents chose to invest in homeownership, possibly viewing it as a profitable long-term investment.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 59643. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period of low interest rates corresponded with the increase in homeownership from 85% to 90%. The affordability of mortgages during this time likely encouraged more residents to purchase homes. Even as interest rates began to rise in 2022 to 1.68%, the homeownership rate remained high at 91%, indicating a strong preference for owning rather than renting in this area.
The percentage of renters in zip code 59643 has steadily decreased from 15% in 2013 to 9% in 2022. Despite this decline in the renter population, average rent prices have shown a modest increase. In 2013, the average rent was $797, which rose to $781 by 2022, representing a relatively small 2% decrease over nine years. This stability in rent prices, despite the declining renter population, may be attributed to the overall increase in property values and the limited supply of rental properties in the area.
In 2023 and 2024, the average home prices in zip code 59643 continued their upward trajectory. The average home price reached $434,357 in 2023 and further increased to $473,721 in 2024. This represents a 9% increase from 2022 to 2024. Notably, federal interest rates also rose significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, home prices continued to appreciate, suggesting strong demand for housing in the area.
Looking ahead, based on the historical data and current trends, we can forecast continued growth in both average home prices and rent prices for zip code 59643 over the next five years. Average home prices are projected to maintain their upward trajectory, potentially reaching around $600,000 by 2029. Average rent prices, while more stable, are likely to see modest increases, possibly reaching $850 per month in the same timeframe.
In summary, zip code 59643 has demonstrated a strong trend towards homeownership, with a significant increase in average home prices over the past decade. Despite rising interest rates, the area continues to see growth in property values. The rental market, while shrinking, has maintained relatively stable prices. These trends suggest a robust and desirable housing market in Toston, Montana, with a clear preference for homeownership among its residents.
