Economic and Housing Report Insights

Recently, we had the privilege of attending the Montana Economic Update Seminar featuring Amy Watson, Chief Economist with the Montana Department of Labor and Industry, and the Gallatin Valley Housing Market Report with Jessica Lautz, the NAR Deputy Chief Economist and Vice President of Research. These events provided invaluable information about the current state and future economic outlook of Montana and Southwest Montana real estate markets. Here are some key takeaways from the presentations:

Montana's Steady Growth

Population

Although the post-pandemic rush to Montana has slowed down the past couple of years, Montana's still growing! We saw our population increase by 0.5% in 2024, which means 5,931 more folks now call Montana home. What does this mean for you? Well, more people generally translates to a steady demand for housing, which is something to keep in mind whether you're thinking of buying or selling.

Home Appreciation

These slides detail the significant home price appreciation from 2020 to 2024, demonstrating the substantial return on investment in Montana real estate.

Continued Home Price Growth

This slide projects continued home price growth, with a slow down in home sales over the next decade, indicating a long-term investment opportunity.

GDP Growth

Our economy's growth rate is starting to level off a bit after the big surge we saw post-pandemic. But don't worry, this isn't necessarily a bad thing! It suggests we're moving towards a more balanced and sustainable pace, which is actually really important for long-term stability.

Employment Growth

Montana's job market is looking healthy! While we're seeing job gains moderate a bit in 2024, the overall outlook for Montana's employment is still positive. We're seeing some sectors really shine, like Healthcare and Construction, which have added a good number of jobs.

Employment Growth Across Industries

This slide breaks down employment growth across various industries, highlighting sectors with the largest gains and losses.

Housing Affordability

Montana ranks 11th in the nation for least affordable housing, with home values significantly higher than household income, especially in Western Montana. This isn't news to anyone living in Montana, but the good news is there are local organizations and employers working tirelessly toward a more affordable and sustainable market. 

Looking Ahead

There is a positive outlook for the rest of 2025 and beyond, supported by a strong labor market, moderating inflation, and continued business growth.

Southwest Montana: A Hyper-Local Market

One thing we know is true is that real estate is hyper-local. While the statewide trends provide a general overview, the specifics can vary significantly from town to town, and even neighborhood to neighborhood. In a hyper-local market like Southwest Montana, having an experienced real estate agent is crucial. Here’s why:

Local Expertise: Local agents possess in-depth knowledge of specific neighborhoods, schools, market trends, and community developments.

Accurate Valuation: We can provide accurate property valuations, ensuring you get the best price whether you're buying or selling.

Negotiation Skills: Experienced agents are skilled negotiators, advocating for your best interests in every transaction.

Network: We have a strong network of local professionals, including lenders, inspectors, and contractors, to facilitate a smooth process.

Personalized Service: We offer personalized service tailored to your unique needs and preferences.

Real Estate isStill a Great Investment!

Despite fluctuations, real estate remains a solid long-term investment. The Montana Economic Update Seminar and the Gallatin Valley Housing Market Report both highlighted the continued growth and resilience of the market. With careful planning and the guidance of a knowledgeable agent, you can achieve your real estate goals. And if you're looking to get into the real estate market for the first time, now is the time! Below is a graph comparing net wealth of renters and home owners - a striking difference! 

For more information or to speak with one of our experienced agents, please don't hesitate to contact us!