Montana has long been celebrated for its wide-open spaces, rugged beauty, and relaxed lifestyle. But in recent years, another label has started to stick—one of the least affordable housing markets in the country.

So what’s driving this shift, and what does it mean for today’s buyers, sellers, and long-time residents? Let’s break down where things stand in 2025—and what you can do if you’re trying to navigate the current market.

What’s Happening With Home Prices in Montana?

Over the last five years, Montana has seen some of the fastest-growing home prices in the U.S. Driven by an influx of out-of-state buyers (especially during and after the pandemic), low housing inventory, and high demand for remote work-friendly living, prices in areas like Bozeman, Missoula, Kalispell, and Helena surged.

In 2025, home prices have stabilized slightly—but remain well above national averages. According to recent reports, Montana’s median home price is over $450,000, while the median household income lags far behind, creating one of the widest affordability gaps in the country.

Why Is It So Expensive?

Several factors are contributing to Montana’s affordability challenge:

• Limited Inventory: New construction hasn’t kept pace with demand, especially in desirable or scenic areas with land-use restrictions.

• Remote Work Migration: Buyers from California, Washington, and other high-cost states brought cash offers and larger budgets.

• Investment Properties & Second Homes: Vacation rentals and luxury second homes have taken a chunk of available housing off the year-round market.

• Rural Infrastructure Limits: Many small towns weren’t designed for rapid population growth, and expanding utilities, roads, and services takes time.

Who’s Feeling the Pinch?

While Montana’s real estate boom has benefitted sellers and investors, many long-time residents and first-time buyers are feeling squeezed. Young professionals, service workers, and families are finding it increasingly difficult to buy within their own communities.

Renters aren’t immune either—rental rates have climbed sharply, and options for affordable long-term housing are dwindling, especially near job centers and schools.

What Can Buyers Do Right Now?

If you’re trying to buy a home in Montana in 2025, affordability is a real challenge—but not impossible. Here are a few strategies that can help:

• Explore Emerging Areas: Smaller towns and rural communities outside the “hot spots” may offer more reasonable prices and growing potential.

• Look Into Assistance Programs: First-time buyer loans, USDA rural development programs, and state housing grants can help bridge the gap.

• Work With a Local Realtor®: Understanding micro-markets is key. A knowledgeable agent can help you spot overlooked listings or negotiate more effectively.

• Get Pre-Approved and Be Ready: Sellers still expect strong offers, so having your financing locked in gives you an edge in competitive price ranges.

Final Thoughts: Is Montana Still Affordable?

The short answer is: it depends. For some buyers—especially those relocating from high-cost cities—Montana may still feel like a bargain. But for many locals and younger buyers, affordability is a serious concern that’s reshaping where and how they buy.

As the market continues to evolve, staying informed and working with professionals who understand the landscape is more important than ever.

Looking to buy or sell in Montana? I’d love to help you navigate the market with honest advice, local insight, and a plan that works for your goals. Reach out anytime!