Luxury properties became commonplace in areas like Bozeman, Flathead Valley, and Big Sky.
Many of these buyers paid cash or carried big budgets, often outbidding local Montanans.
As a result, longtime residents struggled to compete, and first-time buyer shares hit record lows.
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Montanas High-End Homebuying Boom vs. Home prices in the state skyrocketed as wealthy buyers entered the market in droves.
Statewide home prices roughly doubled from 2017 to 2023, rising about 105% in that span.
During the 20082017 period, Montanas housing market was relatively stable.
Home prices increased gradually for example, the FHFA index ticked up only ~15% over that decade.
Housing supply kept reasonable pace with demand, and outside of resort enclaves, million-dollar home sales were rare.
In short, before 2018 there was no indication that Montana would become a hotspot for $500K+ earners.
That all changed as Montana entered the late 2010s and especially the 2020s.
Then the COVID-19 pandemic turbocharged everything.
A major catalyst was the pandemic, which enabled remote work and untethered many high-paid professionals from coastal cities.
Remote work arrangements greatly facilitated this migration.
The result was a wave of well-paid buyers arriving with big budgets.
Real estate professionals have observed aYellowstone effectfueling interest in the region.
All of this attention translated into heightened demand for property.
Notably, home prices hit all-time highs as this influx peaked.
Statewide, the median home price roughly doubled from early 2020 to 2022.
What Types of Properties Are High-Income Households Buying?
Buyers earning half a million dollars or more per year generally targeted the upper echelon of Montanas housing stock.
In practice, this meant large single-family homes, luxury estates, and properties with acreage or special amenities.
By 2023, over 62% of Bozemans home listings were priced above $1 million.
This statistic (the vast majority of listings being luxury properties) underscores how common seven-figure homes became.
But the trend was not limited to those places.
Many affluent buyers wanted more space (upsizing) compared to their prior residence.
The answer issome of both, though pandemic-era evidence suggests relocation was a big component.
At the same time, Montana saw a boom in second-home purchases during the pandemic.
Many of those were cash deals in destination spots.
Thus, both upsizing relocators and second-home purchasers were active.
This suggests Montanas draw is strong enough that what starts as a part-time retreat often becomes a permanent residence.
Typically, downsizing refers to moving to a smaller or less expensive home.
The COVID-19 Catalyst and Post-Pandemic Shifts
COVID-19 dramatically accelerated the high-income homebuying trend in Montana.
Real estate agents were stunned at how quickly high-end inventory was snapped up by outsiders.
By late 2022 and into 2023, the market cooled from its frenzy, though it remained historically hot.
Key changes post-COVID peak included:
In summary, COVID-19 acted as a launchpad for Montanas luxury homebuying surge.
Post-pandemic, the market edged back toward equilibrium but never returned to pre-COVID normal.
Home prices soared beyond the reach of most Montana residents, whose incomes are far below $500K.
The median household income in Montana is around $7075K nowhere near the level of these wealthy transplants.
Younger and less affluent residents found themselves unable to compete.
Indeed, the share of first-time homebuyers hit record lows both nationally and in Montana during this period.
There are numerous stories of frustrated locals.
On the flip side, the influx brought positives to the market and economy.
High-end home construction increased, benefiting the building trades.
Some rural property owners were happy to sell land at high prices to these newcomers, providing a windfall.
And for those Montanans whocouldcapitalize perhaps by selling their own home at an inflated price the boom created opportunities.
Conclusion
Montanas housing landscape from 2018 to 2023 was defined by an extraordinary influx of high-earning homebuyers.
These $500K+ households whether relocating primary residences or purchasing vacation retreats reshaped the market.
At the same time, this trend injected new wealth and energy into Montana.
As of 2023, the frenzy has cooled, but the effects remain.
High-income buyers are still active, albeit in a more normalized market.