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Zip Code 59847: Rising Home Values and Ownership Rates in Lolo, Montana
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 59847, located in Lolo, Montana, presents an intriguing case study of homeownership and housing market dynamics in a small, growing community. Over the past decade, this area has experienced notable fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 59847 has remained relatively stable, with slight fluctuations between 80% and 86% from 2013 to 2022. During this period, average home prices have shown a substantial upward trend. In 2013, the average home price was $222,333, which steadily increased to $510,155 by 2022, representing a remarkable 129% increase over nine years. This significant appreciation in home values coincided with periods of both high and low homeownership rates, suggesting that other factors beyond price alone influenced ownership decisions in this area.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 59847. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.40%, which corresponded with homeownership rates of 83% to 86%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates remained relatively stable between 84% and 86%. Interestingly, despite the sharp drop in interest rates to 0.38% in 2020 and 0.08% in 2021, homeownership rates actually decreased to 80%, possibly due to economic uncertainties related to the global pandemic.
Renter percentages in zip code 59847 have fluctuated inversely to homeownership rates, ranging from 14% to 20% between 2013 and 2022. Average rent prices have shown an overall upward trend, albeit with some volatility. In 2013, the average rent was $774, which increased to $1,008 by 2021, representing a 30% increase. However, there was a slight decrease to $868 in 2022. The population growth from 4,157 in 2013 to 5,180 in 2022 likely contributed to the overall increase in rental demand and prices.
Looking at the most recent data, average home prices in zip code 59847 experienced a slight decrease from $510,155 in 2022 to $505,712 in 2023, followed by a modest increase to $520,136 in 2024. This recent trend suggests a stabilization in the housing market after years of rapid appreciation. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which may impact future homebuying activity and affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 59847 will continue to rise, albeit at a more moderate pace compared to the rapid growth seen in recent years. The average home price is projected to reach approximately $575,000 by 2029. Average rent prices are expected to follow a similar trajectory, potentially reaching around $1,200 per month by 2029. These projections assume relatively stable economic conditions and continued population growth in the area.
In summary, zip code 59847 has demonstrated strong homeownership rates and significant appreciation in home values over the past decade. The interplay between federal interest rates, population growth, and local market conditions has shaped the housing landscape in this Montana community. While recent data suggests a potential stabilization in the market, the long-term trend points towards continued growth in both home values and rental prices, albeit at a more moderate pace than in previous years.
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