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Zip Code 59740: Rising Home Values and Ownership Trends in McAllister, 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 59740, located in McAllister, Montana, is a rural area characterized by its low population density and evolving real estate market. Over the past decade, this region has experienced notable shifts in homeownership rates and property values, reflecting broader economic trends and local dynamics.
The ownership percentage in zip code 59740 has shown a general upward trend, increasing from 80% in 2013 to 84% in 2022. This rise in homeownership coincided with a significant increase in average home prices. In 2016, the average home price was $386,390, which steadily climbed to reach $798,841 by 2022, representing a remarkable 106.7% increase over six years. This substantial appreciation in property values likely contributed to the growing appeal of homeownership in the area.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 59740. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 0.38%, which generally encourages homeownership due to more affordable financing options. This aligns with the observed increase in homeownership rates during this time. However, as interest rates began to rise more sharply in 2022 (1.68%), we see a slight dip in homeownership from 85% in 2021 to 84% in 2022, suggesting a potential correlation between higher interest rates and a marginal decrease in homeownership.
Conversely, the percentage of renters in zip code 59740 has shown a general decline, dropping from 19% in 2013 to 16% in 2022. Despite this decrease in the renter population, average rent prices have experienced significant growth. In 2013, the average rent was $632, which increased to $1,280 by 2022, representing a 102.5% increase. This substantial rise in rent prices, despite a decreasing renter population, suggests a tightening rental market, possibly due to limited rental inventory or increasing property values in the area.
Looking at the most recent data, the average home price in zip code 59740 for 2023 was $762,965, showing a slight decrease from 2022. However, the 2024 average home price has rebounded to $795,591. This recovery occurs despite the significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates would typically be expected to cool the housing market, yet the area appears to be maintaining strong property values.
Applying predictive models to forecast 5-year trends, we anticipate continued growth in both average home prices and rent prices for zip code 59740. Home prices are projected to increase by approximately 3-5% annually, potentially reaching around $920,000 by 2029. Rent prices are expected to follow a similar trajectory, with an estimated annual increase of 4-6%, potentially reaching around $1,600 per month by 2029. These projections assume stable economic conditions and continued demand for housing in the area.
In summary, zip code 59740 has demonstrated a robust real estate market with increasing homeownership rates and significant appreciation in both home and rent prices over the past decade. The area has shown resilience in maintaining property values even in the face of rising interest rates. The continued upward trend in both ownership and rental costs suggests a strong and potentially competitive housing market in this Montana community for the foreseeable future.
