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Zip Code 59858: Rural Montana's Resilient Housing Market Amidst Rising 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 59858, encompassing Maxville in Montana, presents an intriguing case study of rural housing dynamics. This expansive area, spanning 1,113.47 square miles, has experienced notable fluctuations in homeownership rates and housing prices over the past decade. The overall trend shows a slight increase in homeownership, coupled with significant growth in average home prices, while average rent prices have shown more modest changes.
From 2013 to 2022, the homeownership rate in zip code 59858 has fluctuated, starting at 76% in 2013, peaking at 82% in 2019, and settling at 75% in 2022. Concurrently, average home prices have seen a dramatic increase. In 2012, the average home price was $153,706, which steadily rose to $229,369 by 2019, representing a 49% increase over seven years. This upward trend accelerated dramatically in the following years, with the average home price reaching $439,413 in 2022, marking a staggering 186% increase from 2012.
The relationship between federal interest rates and homeownership rates in this area shows some correlation. For instance, as interest rates remained low between 2013 and 2016 (ranging from 0.09% to 0.4%), homeownership rates stayed relatively stable around 72-73%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), we paradoxically saw an increase in homeownership to 82% by 2019. This suggests that in this rural area, other factors may have a stronger influence on homeownership than interest rates alone.
Renter percentages have shown an inverse relationship to homeownership rates, naturally. The renter population decreased from 28% in 2014 to 18% in 2019, before rising again to 25% in 2022. Average rent prices have been more volatile than homeownership rates. In 2013, the average rent was $587, which decreased to $536 by 2015. It then spiked to $676 in 2017, before declining again to $548 in 2022. These fluctuations may be influenced by the changing population, which grew from 1,991 in 2013 to 2,262 in 2022, potentially affecting housing demand.
Looking at the most recent data, the average home price in zip code 59858 decreased slightly to $426,967 in 2023 and further to $421,276 in 2024. This represents a 4.1% decrease from the 2022 peak. Concurrently, federal interest rates have risen sharply to 5.02% in 2023 and 5.33% in 2024, which may be contributing to the cooling of home prices.
Applying predictive models to forecast 5-year trends, we can anticipate that average home prices in zip code 59858 may stabilize or experience modest growth, assuming interest rates remain high. The rapid price growth seen from 2020 to 2022 is unlikely to continue at the same pace. For rent prices, a gradual increase might be expected, potentially reaching around $600-$650 by 2029, barring any significant economic shifts.
In summary, zip code 59858 has experienced substantial growth in average home prices over the past decade, with homeownership rates remaining relatively high despite some fluctuations. The area has shown resilience in maintaining a strong ownership market, even as home prices have more than doubled. The recent cooling of prices, coupled with high interest rates, suggests a potential stabilization of the housing market in this rural Montana community.
