Montana's Housing Market Gets Crazy With 85% Jump In Home Prices

Montana is experiencing a population surge that has driven home prices up faster than in any other state, creating opportunities and challenges.

While the trend predates the hit TV series "Yellowstone," which premiered in 2018 and brought attention to the state's rugged charm, the phenomenon has intensified recently.

Between 2010 and 2020, Montana's population grew by nearly 10%, while housing construction lagged, increasing by just 7%. According to U.S. Census data, the COVID-19 pandemic accelerated the growth, with the state's population expanding by an additional 5% from 2020 to 2023.

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"We have a ton of out-of-staters moving in and a lot of cash buyers," Kristen Campbell, a real estate agent with Homes of Big Sky in Bozeman, Montana, told the New York Post.

Many of Montana's new residents hail from high-cost West Coast cities, leveraging their home equity to outbid local buyers and drive up property values. The rise of remote work, according to the Post, has also fueled the migration, enabling white-collar professionals to relocate without leaving their jobs behind.

Montana's appeal lies in its stunning natural landscapes and abundant opportunities for outdoor recreation. Residents can enjoy skiing during the winter and activities like hunting, fishing and hiking during the warmer months, making the state a year-round haven for nature enthusiasts.

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Over the past five years, Montana's median home listing prices have surged by 85%, the fastest increase of any state. In October, the median listing price in Montana reached $646,975, ranking as the fifth highest nationally behind Hawaii, California and Massachusetts. Montana’s median price per square foot is $318, the highest among landlocked states.

Rapid price growth isn't confined to Bozeman, a hub for visitors to Yellowstone National Park. While Bozeman's median listing prices have risen 57% in five years, other cities have seen even steeper increases: Missoula (66%), Kalispell (85%), Helena (91%) and Butte (92%).

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The soaring home prices have benefited existing homeowners by significantly increasing their property equity. However, they pose challenges for many younger Montanans, including multigenerational residents who now struggle to afford homeownership without considerable family financial support.

According to a Realtor.com analysis conducted earlier this year, Montana ranks as the least affordable state in the U.S. when comparing home prices to local income levels. This highlights a significant gap between housing costs and earning potential for many residents.

"It's pretty much impossible for first-time homebuyers," Campbell said. "I have two sons. I've got a 33-year-old and a 29-year-old and unless we help them, they're not buying houses. It's gotten ridiculous."

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