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Zip Code 59821: Rural Montana's Resilient Housing Market Amidst Soaring Home Values
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 59821, located in Arlee, Montana, has experienced significant changes in homeownership rates and housing prices over the past decade. This rural area has seen a notable increase in population and fluctuations in both ownership percentages and average home prices, making it an interesting case study for real estate trends in small Montana communities.
The ownership percentage in zip code 59821 has shown considerable variability over the years. In 2013, the homeownership rate stood at 71%, rising to a peak of 79% in 2016 and 2017. However, by 2022, it had decreased to 71%. This fluctuation coincides with changes in average home prices, which have seen a dramatic increase. In 2013, the average home price was $191,768, and it steadily rose to $482,904 by 2022, representing a 152% increase over this period. The most significant jump occurred between 2020 and 2022, with prices surging from $296,196 to $482,904, a 63% increase in just two years.
Federal interest rates have played a role in homeownership trends in the area. From 2013 to 2016, when interest rates were at historic lows (ranging from 0.11% to 0.40%), homeownership in the zip code increased from 71% to 79%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, the homeownership rate in the area declined to 71%, suggesting a potential correlation between higher interest rates and decreased homeownership.
Renter percentages in zip code 59821 have inversely mirrored homeownership rates, ranging from a low of 21% in 2016 and 2017 to 29% in 2022. Average rent prices have shown an overall upward trend, increasing from $498 in 2013 to $700 in 2022, a 41% rise. Notably, there was a significant jump in average rent from $621 in 2019 to $731 in 2021, coinciding with the area's population growth from 2,063 to 2,179 during the same period. This suggests that increased demand for rental properties, driven by population growth, may have contributed to rising rent prices.
In 2023 and 2024, the average home prices in zip code 59821 continued to rise, reaching $491,835 in 2023 and $511,778 in 2024. This represents a 6% increase from 2022 to 2024. Concurrently, federal interest rates have also increased significantly, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership rates and housing affordability in the area.
Looking ahead, based on the historical data and current trends, we can project that average home prices in zip code 59821 may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. We might expect average home prices to reach approximately $550,000 to $600,000 by 2029. Average rent prices are also likely to increase, potentially reaching $800 to $850 per month in the same timeframe, driven by ongoing population growth and housing demand in the area.
In summary, zip code 59821 has experienced significant growth in both population and housing prices over the past decade. The area has seen fluctuations in homeownership rates, strongly influenced by changes in average home prices and federal interest rates. Despite some recent declines in homeownership percentages, the overall trend shows a robust housing market with steadily increasing property values and rent prices. The interplay between population growth, housing costs, and interest rates will likely continue to shape the real estate landscape in this Montana community in the coming years.
