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Zip Code 59872: Rising Home Values and Ownership Rates in Riverbend, 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 59872, located in Riverbend, Montana, has experienced significant changes in homeownership rates and housing prices over the past decade. This rural area has seen a notable increase in homeownership, coupled with substantial growth in average home values. The community has also witnessed fluctuations in average rent prices, reflecting the dynamic nature of its housing market.
The trend of homeownership in zip code 59872 shows a steady increase from 2013 to 2022. In 2013, the homeownership rate was 67%, which grew to 80% by 2022. This 13 percentage point increase indicates a strong shift towards homeownership in the area. Concurrently, average home prices have shown a dramatic upward trend. In 2013, the average home price was $148,787, which more than doubled to $353,787 by 2022, representing a 138% increase over this period.
The relationship between federal interest rates and homeownership rates in this zip code is noteworthy. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates increased from 67% to 71%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership continued to grow, reaching 75% in 2019. This trend suggests that other local factors may have had a stronger influence on homeownership than interest rates alone in this particular area.
Renter percentages in zip code 59872 have shown a corresponding decline as homeownership increased. In 2013, 32% of the population were renters, which decreased to 20% by 2022. Interestingly, average rent prices have fluctuated during this period. In 2013, the average rent was $573, which decreased to $472 in 2019, before rising again to $502 in 2022. This represents a 12.4% overall decrease in average rent from 2013 to 2022, despite the area's population growth from 2,206 in 2013 to 2,499 in 2022.
Looking at the most recent data, the average home price in zip code 59872 reached $360,944 in 2023 and further increased to $377,991 in 2024. This represents a 2% increase from 2022 to 2023 and a 4.7% increase from 2023 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting future homeownership trends in the area.
Applying predictive models to forecast 5-year trends, we anticipate continued growth in average home prices for zip code 59872. Based on the historical data and current market conditions, average home prices could potentially reach around $450,000 by 2029. For average rent prices, the forecast suggests a possible stabilization or moderate increase, potentially reaching around $600 by 2029, assuming current trends continue.
In summary, zip code 59872 has demonstrated a strong trend towards increased homeownership and rising home values over the past decade. Despite fluctuations in average rent prices, the area has seen a significant shift from renting to owning. The community's resilience in maintaining high homeownership rates, even in the face of rising interest rates, suggests a robust local housing market. As we look to the future, the area is poised for continued growth in home values, with potential stabilization in the rental market.
