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Zip Code 59648: Rising Home Values and High Ownership in Helena Valley Northeast
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
Helena Valley Northeast, located in zip code 59648 in Montana, is a small community that has experienced notable changes in its housing market over the past decade. This area has maintained a consistently high rate of homeownership, with average home prices showing a significant upward trend. Meanwhile, the rental market has seen fluctuations in both occupancy rates and average rent prices.
The homeownership rate in Helena Valley Northeast has remained remarkably stable, ranging from 82% to 89% between 2013 and 2022. This high rate of homeownership coincides with a steady increase in average home prices. In 2010, the average home price was $210,535, which rose to $471,830 by 2022, representing a substantial 124% increase over 12 years. The most dramatic price surge occurred between 2020 and 2022, with average home prices jumping from $309,626 to $471,830, a 52% increase in just two years.
Federal interest rates have played a role in shaping homeownership trends in the area. The period from 2010 to 2016 saw historically low interest rates, ranging from 0.09% to 0.40%. During this time, homeownership rates remained high, likely due to the affordability of mortgages. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates still remained strong, even increasing slightly to 89% in 2022, suggesting a resilient local housing market.
The rental market in Helena Valley Northeast has shown more volatility compared to the homeownership sector. Renter-occupied housing fluctuated between 11% and 15% from 2013 to 2022. Average rent prices have also seen significant variations. In 2013, the average rent was $798, which increased to $1,159 in 2014, a 45% jump. Rent prices then fluctuated over the following years, reaching $949 in 2022. These changes in rent prices don't show a clear correlation with the percentage of renters, indicating that other factors, such as local economic conditions or housing supply, may be influencing the rental market.
Looking at the most recent data, the average home price in 2023 was $449,234, showing a slight decrease from the 2022 peak. However, in 2024, prices have rebounded to $473,651, surpassing the 2022 level. This price increase coincides with a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, the housing market in Helena Valley Northeast appears to remain strong.
Applying predictive models to forecast 5-year trends, we can expect average home prices in Helena Valley Northeast to continue their upward trajectory, albeit at a potentially slower rate due to the higher interest rate environment. Average rent prices are likely to stabilize or increase moderately, influenced by the area's consistent population and the balance between homeownership and rental occupancy.
In summary, Helena Valley Northeast (59648) has demonstrated a robust housing market characterized by high homeownership rates and steadily increasing average home prices. The rental market, while smaller, has shown resilience with fluctuating rent prices. The area's ability to maintain high homeownership rates even in the face of rising interest rates suggests a strong local economy and desirable living conditions. As we move forward, the interplay between home prices, rent rates, and interest rates will continue to shape the housing landscape in this Montana community.
