Why Invest in Montana Real Estate?
Montana, also known as Big Sky Country, is popular for its relatively low population density, coupled with captivating scenery found nowhere else in the country. Apart from its beautiful scenery, however, Montana is home to a number of historic attractions, college towns, and thriving cities.
Like most states, Montana was significantly impacted by the Great Recession, and Bozeman in particular took a beating. The real estate market has rebounded, however, and prices have been climbing since late 2015 as demand has surged.
While Montana’s economy is traditionally grounded in agriculture, other industries like mineral extraction, tech, breweries, and lumber also contribute to its GDP. And attractions like Glacier National Park and Yellowstone National Park draw millions of tourists each year. Montana has a relatively low unemployment rate in comparison to the national average, and is presently facing a labor shortage, which is limiting economic growth.
Investment Considerations for Montana Real Estate
Investors should consider the following factors when looking to invest in the Montana real estate market:
Appreciating home prices and low property taxes - Housing prices have been on the rise, and are projected to continue to do so for the foreseeable future. Median home values in Montana are slightly higher than the national average, and property taxes in Montana, which clock in right at 0.87 percent of assessed value, are substantially lower than the national average of 1.211 percent. Steady appreciation and low taxes are the perfect combination for long-term real estate investments.
Tech is hot, and wages are high - While agriculture is still the most profitable industry in Montana, the high-tech sector of the state is experiencing growth rates of over 18% annually, in comparison to growth rates of just 1.2% in other industries. Companies like Ascent Vision, Zinovo, Pulsara and VizN Energy have more jobs than the labor market can support, which is pushing wages to levels that are almost double the state average.
Growth in tourism - Montana is a favorite destination for outdoor recreation enthusiasts, which fuels the tourism industry, as well as associated businesses like restaurants, lodging, and outfitters. In fact, the tourism industry in Montana the second largest contributor to its economy, and accounts for approximately 7% of Montana’s total GDP. Growth in this sector is creating jobs and attracting new residents annually, many who are looking to escape the rat race and enjoy the serenity of the great outdoors.
There’s a labor shortage - Montana is presently facing a labor shortage, that most experts predict is only going to get worse. As more and more Baby Boomers retire, there simply aren’t enough new people in to replace them, which is creating stagnant economic growth in many industries.
What are the Best Markets to Invest in Montana
Bozeman, Missoula and Billings are among the best real estate markets to invest in Montana. Bozeman couples a vibrant cultural scene with the convenience of being close to 4 different mountain ranges, which is attractive to tourists and outdoor enthusiasts alike. Tech is booming, commute times are short, and the area is expected to see over 11% growth over the coming years. In Missoula, median home prices have continued to appreciate, and homes are selling faster. And in Billings, where the oil industry and microbreweries have a strong foothold on the local economy, home sales are up and inventory is down.