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Zip Code 59804: Rising Home Values and Stable Ownership in Orchard Homes, 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 59804, located in Orchard Homes, Montana, has experienced notable fluctuations in homeownership rates and housing prices over the past decade. This area, known for its scenic beauty and proximity to Missoula, has seen interesting trends in its real estate market. The homeownership rate in zip code 59804 has remained relatively stable, with slight fluctuations between 62% and 66% from 2013 to 2022. During this period, average home prices have shown a significant upward trend. In 2013, the average home price was $277,481, which steadily increased to $618,577 by 2022, representing a substantial 123% increase over nine years. This trend suggests that despite rising home prices, the area has maintained a consistent level of homeownership.
Federal interest rates have played a role in homeownership trends in the area. For instance, in 2020, when interest rates dropped to 0.38%, the homeownership rate was 64%. This relatively low interest rate environment likely contributed to maintaining homeownership levels despite rising home prices. However, the relationship isn't always direct, as seen in 2022 when interest rates rose to 1.68%, yet the homeownership rate remained steady at 65%.
Renter percentages in zip code 59804 have shown minor fluctuations, ranging from 33% to 37% between 2013 and 2022. Average rent prices have generally increased during this period, albeit with some variations. In 2013, the average rent was $1,115, which rose to $1,205 in 2019, representing an 8% increase. However, there was a notable decrease to $995 in 2021, followed by an increase to $1,077 in 2022. These rent price fluctuations appear to have had a limited impact on the overall renter percentage, which has remained relatively stable.
In 2023 and 2024, the real estate market in zip code 59804 has shown interesting developments. The average home price in 2023 was $618,492, virtually unchanged from 2022. However, in 2024, there was a significant increase to $646,741, representing a 4.6% rise. This increase occurred despite the federal interest rate climbing to 5.33% in 2024, up from 5.02% in 2023, suggesting strong demand in the local housing market.
Looking ahead, based on historical trends and current market conditions, we can project potential scenarios for the next five years. Average home prices in zip code 59804 may continue to rise, potentially reaching around $750,000 by 2029, assuming a moderate annual growth rate of 3-4%. Average rent prices could follow a similar trajectory, potentially increasing to approximately $1,250 per month by 2029, based on historical patterns and accounting for market factors.
In summary, zip code 59804 has demonstrated resilience in its homeownership rates despite significant increases in average home prices. The area has maintained a relatively stable balance between owners and renters, with both housing prices and rent showing overall upward trends. The recent sharp increase in home prices, even in the face of rising interest rates, indicates strong demand in this Montana real estate market.
