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Zip Code 59914: Rising Home Values and Changing Ownership Patterns in Rural Dayton, 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 59914, located in Dayton, Montana, is a small rural area with a population that has fluctuated between 57 and 92 residents over the past decade. This zip code has experienced notable shifts in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 59914 has shown considerable variability over the years. In 2013, the area had a 77% homeownership rate, which increased to a peak of 88% in 2018. However, by 2022, this rate had decreased to 76%. This fluctuation in homeownership coincided with significant changes in average home prices. In 2013, the average home price was $376,470, and it steadily increased to $435,296 by 2018, aligning with the peak in homeownership. The average home price continued to rise, reaching $827,939 in 2022, despite the decrease in homeownership rate.
Federal interest rates have played a role in shaping homeownership trends in zip code 59914. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.40%, which likely contributed to the increase in homeownership during this time. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, we observe a corresponding decline in homeownership rates, suggesting that higher borrowing costs may have impacted affordability for potential buyers.
Renter percentages in zip code 59914 have generally moved inversely to homeownership rates. The renter-occupied percentage was 20% in 2013, dropped to a low of 9% in 2018, and then increased to 24% by 2022. Average rent prices have shown some volatility, starting at $996 in 2013, peaking at $1,074 in 2015, and then decreasing to $851 in 2022. This trend suggests that while homeownership became more expensive, rental options remained relatively more affordable, potentially attracting more renters in recent years.
In 2023 and 2024, we see a continuation of the upward trend in average home prices, with values reaching $825,076 in 2023 and $874,029 in 2024. This represents a slight dip followed by a rebound in home values. Concurrently, federal interest rates have increased significantly, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may continue to impact affordability and influence homeownership rates in the area.
Looking ahead, based on historical trends and current market conditions, we can anticipate that average home prices in zip code 59914 may continue to rise over the next five years, albeit potentially at a slower rate due to higher interest rates. Average rent prices might see moderate increases as demand for rentals could grow if homeownership becomes less attainable. However, the small population and limited housing stock in this zip code may lead to more pronounced fluctuations in these trends compared to larger markets.
In summary, zip code 59914 has experienced significant changes in homeownership rates and housing prices over the past decade. The area has seen a general trend of increasing home values, with recent years showing particularly steep growth. Homeownership rates have fluctuated, peaking in 2018 before declining, likely influenced by rising home prices and interest rates. Rental markets have remained relatively stable in terms of pricing, potentially offering a more affordable option for residents as home prices continue to climb.
