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Zip Code 59730: Big Sky's Soaring Home Values and Ownership Trends in a Mountain Resort Town
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 59730, encompassing Big Sky in Montana, is a picturesque area known for its stunning mountain landscapes and world-class ski resort. This region has experienced significant changes in homeownership rates and property values over the past decade, reflecting its growing popularity as a destination for both permanent residents and seasonal visitors.
The ownership percentage in Big Sky has shown a general upward trend, rising from 66% in 2013 to 72% in 2022. This increase in homeownership coincides with a substantial rise in average home prices, which grew from $425,864 in 2013 to $1,192,153 in 2022, representing a remarkable 180% increase over nine years. The correlation between rising homeownership rates and escalating property values suggests a strong demand for housing in this desirable mountain community.
Federal interest rates have played a significant role in shaping homeownership trends in Big Sky. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%, which likely contributed to the initial increase in homeownership from 66% to 68% during this time. As interest rates began to rise more steadily from 2017 (1%) to 2019 (2.16%), homeownership rates remained relatively stable around 67-68%. Interestingly, despite the sharp drop in interest rates to 0.38% in 2020, homeownership surged to 73%, possibly influenced by the pandemic-driven desire for more space and natural surroundings.
Renter percentages in Big Sky have generally decreased as homeownership rates increased, dropping from 34% in 2013 to 28% in 2022. However, average rent prices have shown considerable volatility. In 2013, the average rent was $1,303, which decreased to $1,132 in 2014 before rising again. The highest recorded average rent was $1,598 in 2019, followed by a decrease to $1,195 in 2022. This fluctuation in rent prices, coupled with the decreasing percentage of renters, may indicate a shift in the local housing market towards more long-term residency and investment in property ownership.
Looking at the most recent data, average home prices in Big Sky reached $1,170,739 in 2023 and further increased to $1,304,399 in 2024. This represents a 11.4% increase from 2023 to 2024, indicating continued strong growth in the local real estate market. Simultaneously, federal interest rates rose to 5.02% in 2023 and 5.33% in 2024, reaching levels not seen since before the 2008 financial crisis. Despite these higher interest rates, the continued rise in home prices suggests robust demand for property in this area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Big Sky will continue to rise, potentially reaching around $1.8 million by 2029. This projection is based on the historical growth rate and the area's sustained popularity. Average rent prices are expected to stabilize and potentially increase moderately, possibly reaching $1,700-$1,800 per month by 2029, as the market adjusts to the evolving balance between homeownership and rental demand.
In summary, Big Sky's housing market has demonstrated remarkable growth and resilience. The area has seen a significant increase in homeownership rates, coupled with extraordinary appreciation in property values. Despite fluctuations in federal interest rates and rent prices, the demand for housing in this mountain community remains strong. The ongoing trend of rising home prices, even in the face of higher interest rates, underscores Big Sky's enduring appeal as a residential and investment destination.
