A population boom in Montana is driving up home prices there faster than in any other state in the nation, for good and for ill.
The trend predates the wildly popular drama series “Yellowstone,” which debuted in 2018 and stars Kevin Costner as Montana rancher John Dutton. The series’ final episodes 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 increasing 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 out-of-staters moving in 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 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 and the year-round outdoor activities close at hand, with skiing in the winter and hunting, fishing, and hiking in the warmer months.
“It’s really 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, median home listing prices in Montana have risen 85%, a sharper increase than in any other state in the nation.
In October, the median listing price for Montana homes was $646,975, the fifth highest in the nation after 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.
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%).
It’s a statewide phenomenon that has been a boon to existing homeowners, who have seen their equity value soar as home prices rise.
But 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.
A Realtor.com® analysis earlier this year found that Montana is the least affordable state in the nation when comparing local incomes with local home prices.
“It’s pretty much impossible for first-time homebuyers,” says Campbell. “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.”
Over time, some young residents have been forced to search 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 who are leaving here. Bozeman is an expensive place to live, and some people are fed up with it,” he says.