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Zip Code 59801: Rising Home Values and Shifting Ownership in Missoula, 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 59801 encompasses Missoula, Montana, a vibrant urban center known for its natural beauty and outdoor recreational opportunities. This area has experienced notable shifts in homeownership rates and housing costs over the past decade, with a general trend towards increased renting and rising property values.
The homeownership rate in zip code 59801 has shown a gradual decline from 41% in 2014 to 38% in 2022. This decrease in homeownership corresponds with a significant increase in average home prices. In 2014, the average home price was $220,337, which rose steadily to reach $478,292 in 2022, representing a substantial 117% increase over eight years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may be making homeownership less attainable for some residents.
Federal interest rates have played a role in shaping homeownership trends in the area. The period from 2014 to 2021 saw historically low interest rates, ranging from 0.09% to 1.68%. Despite these favorable borrowing conditions, the homeownership rate continued to decline, indicating that other factors, such as rapidly appreciating home values, may have outweighed the potential benefits of low interest rates for prospective buyers.
As homeownership decreased, the percentage of renters in zip code 59801 increased from 59% in 2014 to 62% in 2022. This shift towards renting coincided with fluctuations in average rent prices. The average rent rose from $875 in 2014 to a peak of $973 in 2021, before slightly decreasing to $911 in 2022. The overall trend shows a 4.1% increase in average rent over this period, which is relatively modest compared to the surge in home prices. The population growth from 30,795 in 2014 to 31,910 in 2022 may have contributed to the increased demand for rental properties.
Looking at the most recent data, the average home price in zip code 59801 reached $486,444 in 2023 and further increased to $499,759 in 2024. This represents a continued upward trajectory in property values. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability and homebuying decisions in the area.
Applying predictive models to forecast trends over the next five years, we anticipate that average home prices in zip code 59801 will continue to rise, albeit at a potentially slower rate due to the higher interest rate environment. Average rent prices are also expected to increase, driven by the ongoing demand for rental properties and the overall housing market dynamics in Missoula.
In summary, zip code 59801 has experienced a clear shift towards renting, with homeownership rates declining as average home prices have more than doubled since 2014. The rental market has seen more modest price increases, potentially making it a more attractive option for many residents. With continued population growth and rising property values, the area is likely to see further evolution in its housing landscape, with affordability remaining a key factor in shaping future trends.
