In Bozeman, the median cost of a house is $761,000.
The tiny city of Bozeman is located in southwest Montana, tucked away amid the mountains.
A large number of individuals have moved there in recent years, causing it to flourish.
The U.S. Census Bureau reports that Bozeman is now home to more than 58,000 people. The city is situated in Gallatin County, which is home to more over 126,000 people.
The real estate market in Bozeman is also vibrant and exciting.
“Clearly, since 2023, the real estate market has changed on a nationwide level. It is booming, The Agency Bozeman and The Agency Big Sky Managing Partner Joy Vance told FOX Business. I believe that, as you’ve probably heard in other markets, we saw fewer buyers in the last two years, mainly because of interest rates and people waiting to see what was happening with the election and understanding their confidence in the economy and the future of the country.
“There’s certain parts of the market that we saw take a back seat, but then other parts of the market we saw still record-breaking prices,” she explained.
Downtown in the city has been “record-setting,” Vance said. Additionally, she stated that “we’re still not seeing homes sit on the market for very long,” with single-family homes in Bozeman costing more than $2–3 million being bought in less than 30 days.
High-end homes and single-family homes have been “in the highest demand and with the lowest inventory,” according to Vance. Additionally, she stated that Bozeman’s luxury real estate market has been among the region’s most robust.
“Anything sub-jumbo rate has taken a back seat,” she said, adding that the condo market “has been lagging” somewhat. According to Vance, “the median sales price being above [$750,000] and interest rates causing high monthly payments are limiting first-time home buyers in the area.”
According to The Agency, the median property price in Bozeman is $761,000. According to Zillow, the area’s home values have increased by more than 59% in the last five years.
The city is roughly 30 miles from Big Sky, home to many well-known people and the exclusive Yellowstone Club resort.
“Seen the effects of that type of wealth come into the area,” Vance said of Bozeman.
“Big Sky is home to just about 4,000 people throughout the year, and some of the eateries there still have shoulder seasons. Then, after a year, they’re saying, ‘I can’t go to the same ten restaurants,’ so they’ll move to Bozeman,’ she explained. People will come to Big Sky to ski or come in the summer, fall in love, and buy a house. “Bozeman is a thriving small community, but we’ve got great restaurants, we’ve got entertainment, and so we’re seeing people who own homes in Big Sky then want to purchase a home, like a condo downtown, so that they don’t have to drive the canyon at night after they’ve had dinner and possibly a glass of wine.”
“We’re seeing second homes as a result in Bozeman, but I also think that it’s putting Bozeman on the map.”
According to Vance, the community is “very sought after” because of the lifestyle and standard of living that residents enjoy, drawing in a “lot of entrepreneurs” and a “very healthy, active type of person.”
Hiking, skiing, riding, and fishing are just a few of the many outdoor recreational opportunities available in the area. According to Vance, other factors that have attracted people to Bozeman include its safety, growing airport, schools, and medical facilities.
“We still have a small town feel,” Vance said, adding that although the lifestyle is “a bit slower paced,” it does offer some of the conveniences seen in larger urban locations.
“People are hearing about it, and once they come here, we see a lot of people who own second, third, fourth homes that are looking in Bozeman because of the lifestyle,” she stated.
The Census Bureau reports that between 2010 and 2020, Bozeman’s population increased by almost 43 percent. Additionally, it reported a 7% rise between April 2020 and July 2023.
“I think the challenge that any community that goes through rapid growth faces is affordable housing, and that is clearly a topic of conversation for our community,” Vance stated. “We’re definitely talking about it, and we’re trying to find solutions.”
If interest rates decline, she predicts a “busy year” for Bozeman’s real estate market in 2025.
“I don’t think prices are going up. Over the past year and a half, we made a small course adjustment,” she remarked. “It’s likely that many sellers will list their homes for sale in February, March, and April that have been holding for a variety of reasons, including low interest rates for the majority of homeowners and their desire to watch the outcome of the election. and I do believe that there will be a significant shift in buyer desire.
According to a Mortgage Bankers Association estimate released in November, 30-year fixed rate mortgages would drop to 6.3% in the year’s last quarter and then continue to decline through 2025, reaching 5.9% in the third and fourth quarters of the following year.
