In Montana, the housing market remains a significant concern despite a gradual decrease in prices. Residents have long grappled with housing affordability, and economists indicate that a swift resolution is unlikely without major market changes. The gap between home prices and the average resident’s ability to pay remains wide.
During the University of Montana’s Bureau of Business and Economic Research’s semi-annual state tour, experts noted potential optimism for 2026. However, the current reality is that housing costs are still largely beyond reach. In-migration to Montana has returned to pre-pandemic levels, yet the rapid price increase during those years has persisted, outpacing residents’ incomes. With stable but stubborn mortgage rates anticipated, economists predict some price drops, though not enough to solve the affordable housing issue.
From 2017 to 2025, housing prices statewide doubled, according to economist Derek Sheehan. Areas like Jefferson, Granite, Stillwater, and Ravalli counties saw property values fall below the average gain rate. A modest 1% increase in housing prices and wage growth has led to slight affordability improvements, but not enough for significant change.
The rental market mirrors the housing situation. While some cooling is observed, major areas still face upward pressure, except Gallatin County, where rental rates decreased. Rent in Gallatin peaked at $2,100 per month in early 2025 but has since decreased. Cascade and Yellowstone counties saw rents rise to around $1,300. More renters are emerging as potential homeowners struggle with mortgage affordability, increasing demand and rates.
In Yellowstone, the largest group of renters in 2024 had incomes between $40,000 and $80,000, up from under $40,000 in 2021. Yet, there is hope for homebuyers: Baby Boomers may soon transition from single-family homes, boosting available housing inventory. Although the housing market in regions like Gallatin, Missoula, and Flathead County remains volatile, Sheehan suggests a three-year outlook with minimal variation.
