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Zip Code 59716: Soaring Home Values and Ownership Rates in Montana's Mountainous Big Sky
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
Big Sky, located in zip code 59716 in Montana, is a picturesque mountain community known for its world-class skiing and outdoor recreational opportunities. Over the past decade, this area has experienced significant changes in homeownership rates and property values, reflecting its growing popularity as a resort destination.
The ownership percentage in Big Sky has shown a general upward trend, rising from 64% in 2013 to 78% in 2022. This increase in homeownership coincided with a substantial rise in average home prices. In 2013, the average home price was $675,308, which more than doubled to $1,867,550 by 2022. This remarkable 176% increase in average home prices over nine years demonstrates the area's growing desirability and investment potential.
The relationship between federal interest rates and homeownership rates in Big Sky appears to follow the general trend of lower interest rates encouraging higher homeownership. For instance, when interest rates were at historic lows between 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates in the area reached their peak at 78%. This correlation suggests that favorable financing conditions likely contributed to the increased ability of residents to purchase homes in this high-value market.
Conversely, the percentage of renters in Big Sky has decreased over time, dropping from 35% in 2013 to 22% in 2022. Despite this decline in the renter population, average rent prices have shown an overall upward trend. The average rent increased from $1,285 in 2013 to $1,291 in 2022, with fluctuations in between, reaching a peak of $1,713 in 2019. The relatively stable rent prices in recent years, despite the decreasing renter population, may indicate a tight rental market with limited supply meeting consistent demand, possibly driven by seasonal workers and tourists in this resort community.
Looking at the most recent data, the average home price in Big Sky for 2023 was $1,744,297, showing a slight decrease from the 2022 peak. However, the 2024 average home price has rebounded to $1,820,820, indicating continued strong demand in the area. It's worth noting that these price levels coincide with higher federal interest rates of 5.02% in 2023 and 5.33% in 2024, which typically would be expected to cool the housing market. The resilience of home prices in Big Sky despite higher interest rates suggests strong underlying demand for property in this desirable location.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Big Sky will continue to appreciate, albeit at a more moderate pace. The area's limited land availability, combined with its ongoing appeal as a luxury resort destination, is likely to support continued price growth. Average rent prices are expected to remain stable or increase slightly, reflecting the area's seasonal rental market and the potential for increased tourism.
In summary, Big Sky has demonstrated robust growth in both homeownership rates and property values over the past decade. The area's transition to a predominantly owner-occupied community, coupled with substantial increases in average home prices, reflects its evolution as a prime real estate market. Despite recent increases in interest rates, the housing market in Big Sky has shown resilience, suggesting that its unique attributes as a mountain resort destination continue to drive demand for both ownership and rental properties.
