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Zip Code 59912: Rising Home Values and Ownership Near Glacier National Park
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 59912, located in Columbia Falls, Montana, showcases an intriguing blend of housing dynamics. This area has experienced notable fluctuations in homeownership rates, average home prices, and average rent prices over the past decade. The ownership percentage has generally remained high, hovering around 75%, while average home prices have shown a significant upward trend, particularly in recent years. Average rent prices, on the other hand, have displayed more moderate fluctuations.
The relationship between homeownership rates and average home prices in zip code 59912 reveals some interesting patterns. In 2013, the homeownership rate stood at 74% with an average home price of $201,668. As average home prices steadily increased, reaching $309,314 in 2019, the homeownership rate also rose to 77%. This trend continued into 2022, with the homeownership rate peaking at 79% despite a substantial increase in average home prices to $589,676. This suggests a strong local housing market where rising prices have not deterred homeownership.
Federal interest rates have played a significant role in shaping homeownership trends in the area. From 2013 to 2016, when interest rates were extremely low (ranging from 0.09% to 0.40%), homeownership rates remained relatively stable around 74-75%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership actually increased to 77%, possibly due to expectations of future rate hikes encouraging purchases. The sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with a slight decrease in homeownership to 76%, but it quickly rebounded to 79% in 2022 despite rising rates (1.68%).
Renter percentages and average rent prices in zip code 59912 have shown an inverse relationship to homeownership trends. In 2013, the renter percentage was 26% with an average rent of $974. As the renter percentage decreased to 23% in 2019, the average rent also decreased slightly to $923. However, by 2021, despite the renter percentage remaining at 23%, the average rent increased to $1,032, possibly reflecting increased housing demand or improved rental property quality. In 2022, the renter percentage dropped to 21%, coinciding with a decrease in average rent to $896, which could indicate a shift towards homeownership in the area.
Looking at the most recent data, the average home price in zip code 59912 for 2023 was $573,956, showing a slight decrease from 2022. However, the 2024 average home price has rebounded to $596,723, indicating continued strength in the local housing market. Interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 59912 will continue to rise, albeit at a more moderate pace. Given the strong historical growth and recent market resilience, we project average home prices could reach approximately $700,000 by 2029. Average rent prices are expected to follow a similar upward trajectory, potentially reaching around $1,200 per month in the same timeframe, assuming consistent economic conditions and housing demand in the area.
In summary, zip code 59912 has demonstrated a robust housing market with increasing homeownership rates despite rising home prices. The area has shown resilience to interest rate fluctuations, maintaining high ownership percentages even as rates have increased. The rental market has become a smaller portion of the housing landscape, with decreasing renter percentages and more volatile rent prices. Looking forward, we expect continued growth in both home prices and rent, albeit at a more moderate pace, reflecting the area's desirability and economic stability.
