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Zip Code 59715: Bozeman's Resilient Real Estate Market Sees Average Home Values Soar to $894,453
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 59715, located in Bozeman, Montana, has experienced significant changes in its housing market over the past decade. This area, known for its scenic beauty and proximity to outdoor recreation, has seen notable shifts in homeownership rates, average home prices, and average rent prices.
The homeownership rate in zip code 59715 has shown a slight increase in recent years. In 2013, the homeownership rate was 53%, and it remained relatively stable until 2021 when it rose to 55%. This increase coincided with a substantial rise in average home prices. In 2013, the average home price was $347,980, and by 2022, it had skyrocketed to $867,164, representing a 149% increase over nine years. This trend suggests that despite the significant increase in home prices, local residents have maintained their ability to purchase homes, possibly due to strong economic conditions in the area.
Federal interest rates have played a role in homeownership trends. 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 stability in homeownership rates, likely making it easier for residents to finance home purchases despite rising prices. The slight increase in homeownership to 55% in 2021 occurred when interest rates were at a historic low of 0.08%, potentially encouraging more buyers to enter the market.
Renter percentages in zip code 59715 have shown a slight decrease, moving from 47% in 2013 to 46% in 2022. This change aligns with the increase in homeownership rates. Interestingly, average rent prices have risen significantly during this period. In 2013, the average rent was $962, and by 2022, it had increased to $1,167, a 21% rise. This increase in rent prices, coupled with the growing population (from 29,970 in 2013 to 36,839 in 2022), suggests a strong demand for rental properties in the area, despite the slight decrease in the percentage of renters.
In 2023 and 2024, the housing market in zip code 59715 showed signs of stabilization. The average home price in 2023 was $854,218, a slight decrease from the 2022 peak. However, in 2024, prices rebounded to $894,453. This period also saw a significant increase in federal interest rates, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 59715 may continue to rise, albeit at a more moderate pace. Over the next five years, average home prices could potentially reach the $1 million mark, assuming current economic conditions persist. Average rent prices are also expected to increase, potentially surpassing $1,500 per month within the next five years, driven by population growth and the area's continued desirability.
In summary, zip code 59715 has experienced a robust housing market with increasing homeownership rates, dramatically rising average home prices, and steadily increasing average rent prices. The area's growing population and desirability have contributed to these trends, while low interest rates until recently have helped sustain homeownership levels. As interest rates rise and home prices continue to climb, it will be crucial to monitor how these factors impact affordability and housing market dynamics in this vibrant Montana community.
