How Will Montanans Afford Homes By 2030? A Stark Outlook

Affordable housing in Montana is expected to get even more grim by 2030.

The days of finding a starter home anywhere in Montana for $200K are long gone. I mean, you might find something cheap in a tiny rural town 100 miles from the nearest hospital. Still, most desirable areas of the Treasure State are pretty much no longer affordable for many Montanans.

Moving is so much fun. Photo by Dina Badamshina on Unsplash

The bad news for homebuyers in Montana.

The wages vs. home price gap is expected to grow over the next five years. Analysts say most Montanans will need a 144% pay raise to afford a house by 2030, according to a recent report.

Based on home sale price projections in line with salaries, the authors of the report note that Montana topped the list, with residents needing a 144% increase in income to afford a home by 2030, followed by California with a 140% increase and New York with a 103% increase.

Guess we'll just live in our parents' basement. Credit Real Twin Photos on Unsplash

Not great news for locals and first-time homebuyers.

According to this prediction, median home prices are expected to hit $932,584 in Montana by 2030. That's just five short years from now! With annual property costs reaching $63,582, residents would need to earn over $190,746 per year to afford a home.

Most Montanans do not earn this kind of salary, and probably won't by 2030. The median household income in Montana is currently right around $70,000.

Get our free mobile app

Are locals getting priced out of home ownership in Montana?

The short answer, yes. People like to blame politics, but really, it's always about supply and demand with real estate. When lots of people want to move to Montana, sellers will get top prices.

Plus, there is little incentive for homebuilders to make smaller, affordable homes on tiny lots, when the profits are certainly better on a sprawling McMansion clad with just enough timber and stone to make it look "Montana".