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Zip Code 59803: Rising Home Values and Ownership Trends 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 59803, located in Missoula, Montana, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area, known for its natural beauty and outdoor recreational opportunities, has seen a dynamic real estate market with notable trends in both ownership and rental sectors.
The homeownership rate in zip code 59803 has shown a general upward trend from 2013 to 2022. In 2013, the homeownership rate was 72%, which increased to 75% by 2022. This rise in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $258,456, which more than doubled to $581,415 by 2022. This trend suggests that despite rising home prices, more residents were able to enter the housing market, possibly due to favorable economic conditions or increased desire for homeownership in the area.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership in the zip code increased from 72% to 74%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, it's worth noting that homeownership continued to rise even as interest rates increased in subsequent years, reaching 77% in 2017 when the federal interest rate was 1%.
Renter percentages in zip code 59803 have generally decreased as homeownership rates increased. In 2013, 28% of residents were renters, which decreased to 25% by 2022. Interestingly, average rent prices have shown an overall upward trend during this period. In 2013, the average rent was $1,002, which increased to $1,287 by 2022, representing a 28.4% increase. This rise in rent prices, coupled with a decrease in the percentage of renters, could indicate a tightening rental market or a shift towards higher-quality rental properties in the area.
Looking at the most recent data, the average home price in zip code 59803 reached $589,481 in 2023 and further increased to $610,455 in 2024. This represents a 5% increase from 2022 to 2024, indicating a continued strong housing market in the area. Correspondingly, federal interest rates have also risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and affordability in the zip code.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 59803 will continue to rise, albeit at a potentially slower rate due to higher interest rates. Based on historical data and current market conditions, average home prices could reach approximately $700,000 by 2029. Average rent prices are also expected to increase, potentially reaching around $1,500 per month in the same timeframe. However, these projections may be influenced by various factors including economic conditions, local development, and changes in population demographics.
In summary, zip code 59803 has demonstrated a robust housing market with increasing homeownership rates and rising property values. The area has seen a significant appreciation in average home prices, more than doubling from 2013 to 2022. Despite this increase, the homeownership rate has continued to rise, reaching 75% in 2022. The rental market has also experienced growth in average prices, even as the percentage of renters has decreased. These trends, combined with recent data showing continued price increases and higher interest rates, suggest a dynamic and evolving real estate landscape in this Missoula zip code.
