Montana’s appeal for real estate investment has greatly increased over the past five years. The demand has greatly outweighed the supply in hot areas such as Bozeman and Kalispell. So much so, that the average home price in Bozeman was recently recorded at $50,000 higher than that of Los Angeles or San Diego. The dynamics of rural real estate are always changing and are important to understand thoroughly.
Montana’s natural beauty and outdoor recreational opportunities are at the forefront of the reasons to move to this amazing state. The state offers a peaceful and serene lifestyle that allows people to slow down. The growing trend of remote work has allowed people to move without needing to have a job lined up first. Parallel with the addition to technology in our everyday lives, people are gaining a desire to unplug and be immersed in nature. Montana is one of the few places that is still centered around that lifestyle.
The Montana real estate market is showing a rising demand for rural properties. The impact of COVID-19 and the hit show Yellowstone were driving forces in the migration of people looking for the lifestyle offered by the state. The market a couple of years ago brought multiple offers on properties that were being bought by people who hadn’t even seen these properties before. Currently, interest rates and lack of inventory have slowed the migration down.
Although developed land only equates to 1.8% of Montana’s non federal land use, the process of urbanization and decrease in agricultural land use has become a major topic of discussion. The Montana landscape has changed much over the past decade and will continue to. Proximity to amenities and infrastructure are some of the major concerns when moving to the state.
The Montana real estate market is increasingly competitive due to limited inventory and high demand. The past six months has shown a stand still in the market with hikes in the interest rate and stagnant pricing. Experts are predicting a decrease in the interest rate, which will increase the movement of properties throughout Montana.
The potential for property value appreciation is high, especially in attractive areas that are close to amenities. The increase of vacation rentals has had a huge impact on the market over the past couple of years. The demand for affordable long-term rentals has greatly increased. Especially in the areas where cost of living is high, and long-term residents and workers are concerned. The commute from lower cost living areas are starting to grow as the popularity of the Montana lifestyle increases.
The value of working with a local real estate agent who is an expert in the market is immeasurable. An experienced agent will be able to walk you through the intricacies of Montana real estate, achieve the best investment scenario, and help you consider long-term goals and plans.
Montana’s future has been changed with the covid market that appreciated prices greatly, and the impact of the hit show Yellowstone. High interest areas, such as Bozeman and Kalispell, have seen a significant increase in migrants. The increase of remote work and the desire for a more removed lifestyle has aided in this, as well. The increase of developed land has been a major concern of locals and agriculturists. Recently, we have been experiencing large demand and limited supply within markets around the state. If you have any further questions or would like to have a more in depth conversation, head over to the TEAM page to contact one of our trusted agents!
