Montana faces rising home prices amid population growth

A surge in Montana's population has significantly impacted the state's housing market, driving up home prices more rapidly than any other state. This trend began before the popular drama series "Yellowstone" aired in 2018, which features Kevin Costner as a Montana rancher. The series' final episodes were released earlier this month.

Between 2010 and 2020, Montana experienced a nearly 10% increase in population. However, housing construction lagged behind with only a 7% rise in units. The COVID-19 pandemic accelerated this trend, resulting in an additional almost 5% population growth from 2020 to 2023, according to census data.

Kristen Campbell, a real estate agent with Homes of Big Sky in Bozeman, noted that many newcomers are from high-priced West Coast areas. These individuals often use their equity to outbid others in Montana's housing market. Remote work has further encouraged migration by allowing white-collar workers to relocate while maintaining their jobs.

Montana's appeal lies in its natural beauty and year-round outdoor activities such as skiing, hunting, fishing, and hiking. "It's really a year-round travel destination," says Nick Zimmer of Crosscurrent Real Estate in Bozeman.

Over the past five years, median home listing prices have increased by 85%, more than any other state. As of October, the median listing price for homes was $646,975—fifth highest nationally after Hawaii, California, New York, and Massachusetts. At $318 per square foot on average, Montana ranks eighth highest nationwide for median listing price per square foot.

Price increases are not confined to Bozeman but extend statewide with significant rises seen in Missoula (66%), Kalispell (85%), Helena (91%), and Butte (92%). While beneficial for current homeowners whose equity values have soared alongside rising prices, younger residents find homeownership increasingly unattainable without substantial family help.

Realtor.com reports that Montana is now the least affordable state when comparing local incomes against local home prices. "It's pretty much impossible for first-time homebuyers," Campbell states. She explains her own sons face challenges buying homes without parental assistance due to inflated costs.

As affordability declines within Montana’s major urban centers like Bozeman—which Zimmer describes as expensive—some residents are compelled to seek affordable housing elsewhere; he recently assisted a client moving to Arizona because of these financial pressures.