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Zip Code 59750: Soaring Home Values and High Ownership Rates in Rural Montana
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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 59750, located in Butte-Silver Bow (balance), Montana, presents an intriguing case study of real estate dynamics in a small, rural community. This area has experienced notable fluctuations in homeownership rates and housing prices over the past decade, with a general trend towards increased owner-occupancy and rising average home values.
The percentage of owner-occupied homes in zip code 59750 has shown a general upward trend, increasing from 81% in 2013 to 91% in 2022. This rise in homeownership coincided with a significant increase in average home prices, which grew from $196,856 in 2013 to $534,130 in 2022, representing a remarkable 171% increase over nine years. The relationship between ownership rates and home prices appears to be positive, with both metrics generally rising together.
Federal interest rates have played a role in shaping homeownership trends in the area. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership in the zip code increased from 81% to 87%, likely influenced by the favorable borrowing conditions. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates in the area continued to climb, reaching 91% that year. This suggests that other local factors may have been more influential in driving homeownership than national interest rates alone.
Renter percentages in zip code 59750 have correspondingly decreased from 19% in 2013 to 10% in 2022. Interestingly, average rent prices have shown significant volatility during this period. From 2013 to 2015, average rent prices remained relatively high, peaking at $1,066 in 2013. However, there was a sharp decline in 2016, with average rent dropping to $526. Since then, average rent prices have remained relatively stable, with minor fluctuations, reaching $527 in 2022. This stability in rent prices, coupled with the area's small population (567 in 2022), suggests a limited rental market with potentially few available units.
Looking at the most recent data, average home prices in zip code 59750 continued to rise, reaching $542,062 in 2023 and $568,589 in 2024. This represents a further 6.5% increase from 2022 to 2024. Simultaneously, federal interest rates have increased significantly, rising to 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, which typically make borrowing more expensive, home prices in the area have continued to appreciate.
Applying predictive models to forecast 5-year trends, we can expect average home prices in zip code 59750 to continue their upward trajectory, potentially reaching around $700,000 by 2029. This projection is based on the historical growth rate and assumes continued demand for housing in the area. Average rent prices, which have been relatively stable in recent years, may see modest increases, potentially reaching around $600 per month by 2029, assuming local economic conditions remain favorable and demand for rentals persists.
In summary, zip code 59750 has experienced a significant shift towards homeownership over the past decade, accompanied by substantial increases in average home prices. The area has shown resilience in maintaining high homeownership rates even as interest rates have risen. The rental market, while smaller, has remained relatively stable in recent years. Looking forward, the area is poised for continued growth in home values, with potential for modest increases in rental prices as well.
