Bozeman, Montana home to a booming real estate market

Nestled among the mountains in southwestern Montana is the small city of Bozeman. 

It has experienced a boom in recent years, with an influx of people moving there.

More than 58,000 people now live in Bozeman, according to the U.S. Census Bureau. Gallatin County, where the city is located, has over 126,000 residents.

Bozeman is also home to a dynamic and lively real estate market.

Aerial View of Main Street in downtown Bozeman Montana. Winter snow is scattered on streets and buildings with the mountain range covered in snow in the distance. Famous Baxter Hotel Sign is seen up close. (iStock / iStock)

“Obviously we’ve seen nationally a shift in the real estate market since 2023. I think that, just as you’ve probably heard in other markets, we saw less buyers in the last two years, primarily due to interest rates and also people waiting to see what was happening with the election and understanding their confidence in economics and the future of the country, so I think that affected us as well, but I would say absolutely” it is booming, The Agency Bozeman and The Agency Big Sky Managing Partner Joy Vance told FOX Business. 

GET FOX BUSINESS ON THE GO BY CLICKING HERE

“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 said.

The city’s downtown has been “record-setting,” according to Vance. She also said that for single-family homes in Bozeman priced over $2-3 million, “we’re still not seeing homes sit on the market for very long,” getting purchased in less than 30 days. 

Single-family homes and residences that fall within the high-end market have been “in the highest demand and with the lowest inventory,” per Vance. She also said luxury homes in Bozeman have been one of the strongest markets in the area.

A back road in the rural area of Bozeman, Montana, US, on Wednesday, July 20, 2022. Across Montana’s 147,000 square miles, the state government recently counted 57 charging stations, most of them clustered in towns and cities rather than along the hi

Meanwhile, the condo market “has been lagging” some and “anything sub-jumbo rate has taken a back seat,” she explained. First-time home buyers “are facing limitations in the area due to the median sales price being above [$750,000] and interest rates causing high monthly payments,” according to Vance.

Bozeman’s median home price is $761,000, The Agency reported. The value of homes in the area have risen over 59% over the past five years, per Zillow.

The city is located about 30 miles from Big Sky, where the private Yellowstone Club resort can be found and many big names have homes.

Bozeman has “seen the effects of that type of wealth come into the area,” according to Vance.

THIS IS THE BEST TIME TO BUY A HOME ACCORDING TO EXPERTS

Buildings in Bozeman, Montana, US, on Thursday, Jan. 18, 2024. A storm system is tracking across the central US,…