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Zip Code 59759: Rising Home Values and Shifting Ownership Trends in Butte-Silver Bow, 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 59759, located in Butte-Silver Bow (balance), Montana, presents an interesting case study in homeownership and housing market trends. This area has experienced significant shifts in both ownership rates and housing prices over the past decade, reflecting broader economic changes and local market dynamics. The homeownership rate in zip code 59759 has shown a slight downward trend over the years, decreasing from 83% in 2013 to 78% in 2022. This change coincides with a substantial increase in average home prices, which rose from $157,977 in 2013 to $401,605 in 2022, representing a 154% increase over this period. The inverse relationship between homeownership rates and average home prices suggests that rising property values may be making homeownership less accessible for some residents.
Federal interest rates have played a crucial role in shaping homeownership trends in this zip code. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%, which corresponded with relatively stable homeownership rates around 82%. However, as interest rates began to rise more sharply from 2017 onwards, reaching 1.68% by 2022, we observed a gradual decline in homeownership rates to 78%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership by making mortgages more affordable, while higher rates can discourage potential buyers.
The rental market in zip code 59759 has shown interesting trends as well. The percentage of renters increased from 17% in 2013 to 22% in 2022, mirroring the decline in homeownership. Concurrently, average rent prices experienced significant fluctuations, rising from $628 in 2013 to a peak of $947 in 2019, before settling at $930 in 2022. This represents a 48% increase in average rent over the decade. The increase in both renter percentage and rent prices suggests growing demand for rental properties, possibly driven by those priced out of the homeownership market.
Looking at the most recent data, the average home price in zip code 59759 reached $423,756 in 2023 and further increased to $439,416 in 2024. This continued upward trend in home prices occurs alongside a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These high interest rates, combined with elevated home prices, may present challenges for potential homebuyers in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 59759 will continue to rise, albeit at a potentially slower rate due to the high interest rate environment. We project average home prices could reach approximately $500,000 by 2029. For rent prices, the forecast suggests a continued upward trajectory, potentially reaching an average of $1,100 per month by 2029, driven by increased demand for rental properties as homeownership becomes less attainable for some residents.
In summary, zip code 59759 has experienced a notable decline in homeownership rates coupled with substantial increases in both average home prices and rent costs over the past decade. The inverse relationship between federal interest rates and homeownership rates is evident, with recent high interest rates potentially contributing to the declining homeownership trend. As home prices continue to rise and interest rates remain elevated, we may see further shifts towards renting in this area, with both home prices and rent costs projected to increase in the coming years.
