Inside a single month, the median price of a single-family home in Gallatin County, Montana, has increased more dramatically than at any other time in recent history, jumping from $487,000 to $575,450 between July and August. At the same time, according to the U.S. Census, the county’s average income is about $61,500 per year as of 2018.
Terry Cunningham, Bozeman city commissioner, attributes these meteoric price gains to a lack of supply and high demand. “We are approaching a crisis point in Bozeman,” said Cunningham, who is the commission liaison to the City Affordable Housing Advisory Board.
Vacancy rates in Bozeman generally hover around zero, Cunningham said, while what’s generally considered a healthy vacancy rate is around 5%. That means that the ever-growing population of the valley are all competing for the same few houses, condos and apartments, which rent or go under contract for sales quickly — sometimes on the same day they are listed.
Mark Dobrenski, a sales associate with Berkshire Hathaway and a member of the Gallatin Association of Realtors, said that such a dearth of inventory can make it especially tough for first-time buyers, like young families. “That is the buyer group I have the most sympathy for,” Dobrenski said.
