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Zip Code 59832: Rising Home Values and Ownership Trends in Rural 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 59832, located in Drummond, Montana, is a rural area spanning 390.74 square miles with a population of 681 in 2022. This zip code has experienced significant fluctuations in homeownership rates and average home prices over the past decade, with a general trend towards increased homeownership and rising property values. The homeownership rate in zip code 59832 has shown a notable increase from 67% in 2018 to 80% in 2022. This upward trend in homeownership coincides with a substantial rise in average home prices. In 2013, the average home price was $139,725, which steadily increased to $337,022 by 2022, representing a remarkable 141% increase over nine years. This correlation suggests that despite rising prices, more residents have been able to enter the housing market.
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 0.4%), homeownership rates in the area remained relatively stable, around 74-78%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), there was a temporary dip in homeownership to 67% in 2018. However, the subsequent drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with a rebound in homeownership rates, reaching 80% by 2022.
Renter percentages in zip code 59832 have inversely mirrored the homeownership trends, decreasing from 33% in 2018 to 20% in 2022. Interestingly, average rent prices have not shown a consistent correlation with renter percentages. The average rent fluctuated between $551 and $639 from 2013 to 2022, with no clear upward or downward trend. This suggests that local factors, such as limited rental inventory in a small town, may have a more significant impact on rent prices than demand alone.
In 2023 and 2024, we observe a slight cooling in the housing market for zip code 59832. The average home price decreased from $337,022 in 2022 to $322,948 in 2023, and further to $321,297 in 2024. This represents a 4.7% decrease over two years. Concurrently, federal interest rates increased significantly to 5.02% in 2023 and 5.33% in 2024, which may have contributed to the softening of home prices.
Looking ahead, our predictive models forecast a stabilization of average home prices in zip code 59832 over the next five years. We anticipate average home prices to hover around $320,000 to $330,000, with potential for slight increases as the market adjusts to higher interest rates. Average rent prices are projected to remain relatively stable, potentially increasing by 2-3% annually, reaching approximately $700 by 2029.
In summary, zip code 59832 has demonstrated a strong trend towards homeownership, with rates increasing significantly despite rising home prices. The interplay between federal interest rates, homeownership rates, and property values has been evident, with low interest rates generally supporting higher homeownership. The recent cooling of home prices, coupled with higher interest rates, suggests a potential period of market stabilization in the coming years.
