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Zip Code 59739: Rising Home Values and Shifting Ownership Trends in Lakeview, Montana
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 59739, located in Lakeview, Montana, presents an intriguing case study of homeownership and rental trends in a rural setting. This area has experienced fluctuating homeownership rates, with a general trend towards increased owner-occupied housing over the past decade. Average home prices have shown consistent growth, while average rent prices have displayed more volatility.
The homeownership rate in zip code 59739 has fluctuated over the years, with a general upward trend. In 2013, the homeownership rate stood at 73%, and by 2022, it had increased slightly to 74%. During this period, average home prices in the area saw significant growth. In 2013, the average home price was $111,535, and by 2022, it had more than doubled to $231,035. This substantial increase in home values coincided with relatively stable homeownership rates, suggesting that residents in this area were able to maintain their status as homeowners despite rising property values.
Federal interest rates have played a role in shaping homeownership trends in zip code 59739. From 2013 to 2016, when interest rates were at historic lows (ranging from 0.11% to 0.40%), the homeownership rate remained stable at around 73%. As interest rates began to rise in 2017 (1.00%) and 2018 (1.83%), there was a slight dip in homeownership to 67% in 2018. However, the community appeared to adapt, and homeownership rates rebounded to 74% by 2022, despite higher interest rates of 1.68% that year.
Renter percentages and average rent prices in zip code 59739 have shown interesting patterns. The percentage of renters fluctuated between 23% and 33% from 2013 to 2022. Notably, average rent prices exhibited significant volatility during this period. In 2013, the average rent was $850, which dropped to $581 in 2015. There was a sharp increase to $816 in 2016, followed by another decline to $562 in 2018. The most dramatic change occurred in 2019 when the average rent plummeted to $243, before rebounding to $883 in 2020. By 2022, the average rent settled at $882. These fluctuations in rent prices did not seem to have a consistent correlation with the percentage of renters, suggesting that other factors, such as local economic conditions or housing supply, may have influenced rental trends in this area.
Looking at the most recent data, the average home price in zip code 59739 continued its upward trajectory, reaching $232,322 in 2023 and further increasing to $245,162 in 2024. This represents a 6.1% increase from 2022 to 2024. Simultaneously, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, which typically make mortgages more expensive, the housing market in this area has continued to appreciate.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 59739 will continue to rise, albeit at a potentially slower rate due to the higher interest rate environment. We project that by 2029, average home prices could reach approximately $290,000 to $310,000, assuming a modest annual growth rate of 3-5%. For average rent prices, given their historical volatility, predictions are less certain. However, if the trend stabilizes, we might expect average rents to range between $900 and $1,100 by 2029, factoring in inflation and potential economic growth in the area.
In summary, zip code 59739 has demonstrated resilience in its housing market, with steadily increasing home values and relatively stable homeownership rates despite fluctuating economic conditions. The rental market has shown more volatility, particularly in pricing. The area's ability to maintain high homeownership rates in the face of rising home prices and interest rates suggests a strong local preference for homeownership and potentially favorable local economic conditions supporting this trend.
