Montana’s population boom drives home prices higher and sends residents young and old packing

A population boom in Montana is driving up home prices there faster than any other state in the country, for better or for worse.

The trend predates the wildly popular drama series Yellowstone, which debuted in 2018 and stars Kevin Costner as Montana rancher John Dutton. The final episodes of the series began airing earlier this month.

From 2010 to 2020, Montana’s population grew by nearly 10%, but housing construction failed to keep pace, with the number of units growing by just 7%. The COVID-19 pandemic turbocharged the trend, with Montana’s population growing almost 5% more from 2020 to 2023, according to census data.

“We have a ton of people moving out of state and a lot of cash buyers,” says Kristen Campbell, a real estate agent with Homes of Big Sky in Bozeman, MT.

Many of the newcomers are from high-priced areas on the West Coast, who are able to cash in on their equity and offer higher prices in Montana. Remote work has also fueled the migration trend, allowing many white-collar workers to bring their jobs with them.

The big draw is Montana’s vast and rugged natural beauty and year-round outdoor activities nearby, with skiing in the winter and hunting, fishing and hiking in the warmer months.

“It is truly a year-round travel destination. It’s not just summer or just winter, says Nick Zimmer, broker and owner of Crosscurrent Real Estate in Bozeman.

In the past five years, Montana median home list prices have increased 85%, a greater increase than in any other state in the country.

In October, the median listing price for Montana homes was $646,975, the fifth highest in the nation behind Hawaii, California, New York and Massachusetts.

Montana’s median listing price of $318 per square foot is the eighth highest in the nation, and by far the highest of any landlocked state with no coastline.

Explosive price growth is not limited to the Bozeman metro area, which includes Big Sky and West Yellowstone, and is one of the main gateways to Yellowstone National Park.

Median list prices are up 57% in Bozeman compared to five years ago, but have risen even faster in Missoula (66%), Kalispell (85%), Helena (91%) and Butte (92%).

It’s a nationwide phenomenon that has been a boon to existing homeowners, who have seen the value of their equity increase as home prices rise.

But for many younger Montanans, including those whose families have lived in the state for generations, the trend has pushed home ownership out of reach, making it difficult to buy a first home without significant help. of the family.

A Realtor.com analysis earlier this year found that Montana is the least affordable state in the nation when comparing local incomes to local home prices.

“It’s almost impossible for first-time home buyers,” says Campbell. “I have two sons. I have a 33 year old and a 29 year old and if we don’t help them they won’t buy a house. It’s become ridiculous.”

Over time, some new residents have been forced to look elsewhere to find homes in their price range, says Zimmer, who recently helped a client move to Arizona.

“There are still a number of people leaving here. Bozeman is an expensive place to live and some people are fed up with it,” he says.