A Population Boom in Montana: A Boom for Home Prices, but a Challenge for Young Homebuyers
The Trend
A population boom in Montana is driving up home prices faster than in any other state in the nation. The trend predates the popular drama series "Yellowstone," which debuted in 2018, and features Kevin Costner as Montana rancher John Dutton.
The Numbers
From 2010 to 2020, Montana’s population grew by nearly 10%, but housing construction failed to keep pace, with the number of units increasing by just 7%. The COVID-19 pandemic turbocharged the trend, with Montana’s population growing almost 5% more from 2020 to 2023.
The Causes
Many of the newcomers are from high-priced areas on the West Coast, who are able to cash in on their equity and bid prices higher in Montana. Remote work has also boosted the migration trend, allowing many white-collar workers to bring their jobs along with them. The big draw is Montana’s vast and rugged natural beauty, with skiing in the winter and hunting, fishing, and hiking in the warmer months.
The Consequences
The population boom has led to home prices rising faster than any other state in the nation. In the past five years, median home listing prices in Montana have risen 85%, a sharper increase than in any other state. In October, the median listing price for Montana homes was $646,975, the fifth highest in the nation.
Regional Variations
The explosive price growth isn’t limited to the Bozeman metro area, which includes Big Sky and West Yellowstone, and is one of the major gateways to Yellowstone National Park. Median listing prices have risen 57% in Bozeman compared with five years ago, but have surged even more quickly in Missoula (66%), Kalispell (85%), Helena (91%), and Butte (92%).
The Impact on Young Homebuyers
It’s a statewide phenomenon that has been a boon to existing homeowners, who have seen their equity value soar as home prices rise. However, for many younger Montana residents, including those whose families have lived in the state for generations, the trend has pushed homeownership out of reach, making a first home purchase difficult without substantial family assistance.
Conclusion
The population boom in Montana has led to a housing market that is increasingly unaffordable for young homebuyers. While the trend has been a boon for existing homeowners, it’s essential to find a balance between preserving the state’s natural beauty and making it possible for young people to buy their first home.
FAQs
Q: What is driving the population boom in Montana?
A: The population boom is driven by a combination of factors, including the COVID-19 pandemic, remote work, and the state’s natural beauty.
Q: What is the impact on home prices in Montana?
A: The population boom has led to home prices rising faster than any other state in the nation, with median listing prices increasing 85% in the past five years.
Q: How are young homebuyers affected by the trend?
A: The trend has pushed homeownership out of reach for many young residents, making it difficult for them to buy their first home without substantial family assistance.
