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Zip Code 59721: Cardwell's Rising Home Values and Stable Ownership Rates
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 59721, located in Cardwell, Montana, is a rural area covering 350.82 square miles. This region has experienced notable fluctuations in homeownership rates and housing prices over the past decade, with a general trend towards increasing average home prices and relatively stable average rent prices. The homeownership rate in zip code 59721 has shown some variability but has generally remained high. In 2013, the homeownership rate was 83%, which slightly decreased to 79% by 2022. During this period, average home prices saw a significant increase. In 2016, the average home price was $248,165, which rose steadily to $546,833 by 2022, representing a substantial 120% increase over six years. This upward trend in home prices, coupled with the relatively stable homeownership rate, suggests a strong local real estate market and continued demand for homeownership despite rising prices.
Federal interest rates have played a role in homeownership trends in the area. From 2013 to 2016, when interest rates were very low (ranging from 0.11% to 0.40%), the homeownership rate remained high at around 80%. As interest rates began to rise more substantially from 2017 (1%) to 2019 (2.16%), there was a slight increase in homeownership to 86% in 2019, possibly due to buyers rushing to purchase before rates increased further. The subsequent drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with a slight decrease in homeownership to 81% in 2021, which could be attributed to other economic factors during the pandemic.
Renter percentages in zip code 59721 have fluctuated inversely to homeownership rates, ranging from a low of 14% in 2019 and 2020 to a high of 21% in 2014 and 2022. Average rent prices have shown a gradual increase over time, rising from $732 in 2014 to $840 in 2022, an increase of about 14.8%. This relatively modest increase in rent prices compared to the substantial rise in home prices may have contributed to the stability in renter percentages, as renting remained a more affordable option for some residents.
In 2023, the average home price in zip code 59721 saw a slight decrease to $541,860, down 0.9% from the previous year. This dip coincided with a significant increase in federal interest rates to 5.02%. Moving into 2024, the average home price has rebounded to $572,813, a 5.7% increase from 2023, despite a further rise in interest rates to 5.33%. This resilience in home prices amid high interest rates suggests strong underlying demand in the local housing market.
Looking ahead, predictive models forecast continued growth in average home prices for zip code 59721 over the next five years, albeit at a potentially slower rate than seen in recent years due to higher interest rates. Average rent prices are expected to maintain their gradual upward trend, likely keeping pace with inflation and local economic factors.
In summary, zip code 59721 has demonstrated a robust housing market characterized by high homeownership rates and significant appreciation in average home values. Despite rising interest rates, the area has maintained strong demand for homeownership. Rent prices have increased more modestly, providing a stable alternative for those unable or unwilling to purchase homes at current prices. The recent rebound in home prices, even in the face of high interest rates, indicates a resilient local real estate market poised for continued growth in the coming years.
