The Montana housing market remains strong in 2022, thanks to a combination of high demand, limited supply, and continuously rising house prices. In June 2022, the typical home in the state of Montana was valued at $448,875. That’s a 25.6% increase year-over-year (YoY), and Zillow predicts the market will continue to rise over the next twelve months. The home prices in Billings, MT are predicted to grow by 7.6% and in Bozeman, the growth rate could be as high as 15.2% by June 2023.
House listing prices are much higher than average and are expected to increase even more in the near future. The second quarter of 2023 will see higher home prices in Montana than the second quarter of the current year. Currently, Montana is a seller’s market. Despite the high listing prices, demand in the state remains robust, resulting in rapid property sales. Nevertheless, each city and town has its local real estate trends.
How is the Montana Housing Market in 2022?
Matthew Gardner, the chief economist at Windermere Real Estate, provides the following study of the real estate markets in a few counties in Montana for the second quarter of 2022. Montana added 15,800 new jobs in the past year, which is above average. All of Montana’s metro regions have regained pandemic-lost employment.
Montana’s June unemployment rate was 2.6%, up from April’s 2.3%. Billings had the lowest unemployment rate, followed by Missoula and Great Falls. I’m concerned about the state’s labor shortage. The labor force participation rate is only 62.6%, making it difficult for firms to recruit workers.
Will Home Prices Drop in Montana?
The price rise in Montana has not yet slowed, but it is just a matter of time given the shifting market conditions.
Home prices rose 17.8% year over year to an average of $710,428 but were 12.9% lower than in the first quarter of 2022.
Despite rising mortgage rates and inventory levels, sellers remain optimistic thus far.
This is evidenced by the fact that the median list price increased in every county but Gallatin compared to the previous quarter.
Montana Home Sales
In the markets covered by this study, 2,359 homes were sold in the second quarter. This was a 2.9% rise from the previous year and more than double the number of sales in the first quarter.
Higher house sales can be linked to the growth of 124% in the number of residences introduced to the market during the quarter.
Four of the counties featured in this research had an increase in sales year over year while the remaining markets experienced a decline.
Compared to the first quarter, sales increased in all counties except Madison.
The 11.7% increase in pending sales from the first quarter to the second quarter suggests that third-quarter statistics may also be good.
Are Montana Rent Prices Going Up?
Prospective buyers are not the only ones feeling the heat in this property market; renters have also been scorched. Statewide the median rent price is increasing year over year. The median rent for all bedrooms and all property types in Montana is $2,100. The median rent price has increased by $250 compared to the previous year, according to Zillow Rentals Data. Rent in Montana is 5% lower than the national median.
The median rent price in Montana for August 2022 is $2,100 based on 369 rentals available.
This is $250 more than August 2021 and $125 more than July 2022.
The median rent in Montana is $100 less than the national median.
The Montana rental market is highly affordable, even amongst the most highly populated cities. Here is a list of average rent prices in five of the most densely populated Montana cities, including Butte-Silver Bow, Great Falls, Billings, Missoula, and Bozeman, according to Apartment list.
City
Average 1-Bedroom Rent
Average 2-Bedroom Rent
Butte-Silver Bow, MT
$788
$950
Great Falls, MT
$795
$995
Billings, MT
$850
$1,095
Missoula, MT
$1,095
$1,350
Bozeman, MT
$1,750
$1,913
Will The Montana Housing Market Crash?
We continue to hear rumors of a market crash, but local data does not corroborate this at this time. Even if minor, the monthly figures indicate that the market has begun to cool. The increase in Montana house listing prices is causing homes to be on the market for a long. If the pattern continues, the inventory may continue to increase and dampen market activity. There aren’t enough homes for sale to meet buyer demand.
Bottom line: We’re not seeing any major home price decline or crash in the Montana housing market just yet. The present supply of homes in Montana still favors sellers. In July 2022, the number of properties for sale in the state increased by 44% year-over-year. The current number of active listings in Montana is 3,918, a rise from 2,720 active listings that were added in July 2021, according to Realtor.com’s monthly data.
Despite being the fourth biggest state in the US, Montana ranks 44th in population density, with fewer than seven people per square mile on average. This state has more elk and antelope than humans despite its beautiful landscapes and abundant natural resources. Montana is a wonderful option for anyone seeking to escape the bustle of urban centers and take in the pristine alpine air.
Montana’s rapid economic growth has lowered its unemployment rate and driven wage growth. According to data from the state labor department, in 2021 Montana added nearly 13,000 new jobs that pay above the state’s median wage. That exceeded the governor’s goal to add a net of 10,000 new jobs that pay more than $50,000. Montana Gov. Greg Gianforte says he has set the same goal to add another 10,000 new jobs in 2022 paying $50,000.
Montana Housing Supply Graph
Graph Source: FRED
Real Estate Market Statistics in Montana & MSA Forecast For 2023
Zillow Home Value Index
$448,875
Home Value Change YoY
+25.6%
Average Housing Inventory Change YoY
+44%
Available Housing Inventory For Sale
3,918
Is Montana a Buyer’s or Seller’s Market
Seller’s Market
Billings MSA One Year Home Values Forecast
+7.6% by June 2023
Kalispell MSA One Year Home Values Forecast
+13.1% by June 2023
Bozeman MSA One Year Home Values Forecast
+13.8% by June 2023
Great Falls MSA One Year Home Values Forecast
+8.2% by June 2023
Helena MSA One Year Home Values Forecast
+9% by June 2023
Top Real Estate Markets in Montana
Billings Real Estate Market
Missoula Real Estate Market
Helena Real Estate Market
Bozeman Real Estate Market
Great Falls Real Estate Market
Kalispell Real Estate Market
Butte Real Estate Market
Livingston Real Estate Market
Laurel Real Estate Market
Whitefish Real Estate Market
Hamilton Real Estate Market
Belgrade Real Estate Market
Lewistown Real Estate Market
Stevensville Real Estate Market
Anaconda Real Estate Market
Lolo Real Estate Market
Libby Real Estate Market
Eureka Real Estate Market
Havre Real Estate Market
Polson Real Estate Market
Data Sources:
https://www.zillow.com/research/data/
https://www.zillow.com/mt/home-values/
https://www.zillow.com/rental-manager/market-trends/mt/
https://fred.stlouisfed.org/series/ACTLISCOUMT#
https://www.apartmentlist.com/renter-life/cost-of-living-in-montana
https://www.mtpr.org/montana-news/2022-07-28/montanas-job-growth-in-2021-surpassed-gianfortes-first-year-goal
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