In 2020, nearly 20% of Montanans were 65 or older, compared to about 17% nationwide.
This is a sharp rise from 2010, when only about 15% of the states population was 65+.
This dominance is a product of both Montanas older age profile and boomers high homeownership rates.
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These demographic shifts have major implications for housing.
Over 20182023, Montana experienced a housing boom alongside its baby boomers transitions.
By 2023, Montana had a severe housing shortage, contributing to soaring prices and affordability challenges.
Boomers nationwide now own more homes than any other generation and are holding onto them longer.
In Montana, where boomers own nearly two-fifths of homes, their tendency to stay put has significant effects.
This locks up inventory, contributing to the housing shortage.
Why Boomers Are Staying Put
First, many are financially incentivized to stay.
Just as importantly, personal and emotional factors keep boomers in place.
In surveys, over half of boomers simply say they love their home and see no reason to move.
After decades in the same community, moving can be daunting.
Their home is full of memories, and it allows them to maintain independence.
Many Montana boomers are healthy and active, not feeling a pressing need to relocate to senior housing.
Those who might consider downsizing often delay it, not wanting to deal with the hassle and change.
The consequence is that fewer homes are being listed for sale by this large generation.
This dynamic of boomers staying put kept housing supply tight across Montana.
Its one reason why Montanas for-sale inventory shrank and prices climbed so steeply in this period.
Downsizing: Dreams vs.
In Montana, some baby boomers wanted smaller, more manageable homes or single-level layouts for aging comfort.
However, the reality in 20182023 is that downsizing proved challenging for many Montanans.
Statewide, home values jumped about 60% from 2020 to 2023 alone, far outpacing income growth.
Another barrier was the scarcity of suitable homes to downsize into.
For those who did downsize, the motivations were strong.
Health issues sometimes forced a move e.g.
The outcome is that downsizing did not provide much relief to the housing gridlock.
If anything, more boomers wanted to downsize than were able to.
A troubling extreme of this trend has been an increase in older Montanans falling into housing insecurity.
With nowhere affordable to go, a few have even ended up homeless.
In fact, boomers nationally overtook millennials as the largest group of home buyers around 2022.
Trading Up or Second Homes
Some Montana boomers actually bought new homes while keeping their existing ones.
Desire for New or Customized Homes
Interestingly, boomers showed interest in new construction when available.
The top reason was to avoid the hassle of renovations and get modern features for aging comfortably.
In Montana, when new single-level homes or condos came on the market, boomers often snapped them up.
The boomer buying wave contributed to multigenerational competition in Montanas housing market.
Baby boomers, as they retired, often reconsidered where they wanted to live their golden years.
It was one of only two cities outside the Sunbelt to rank in the top 10.
These buyers typically had substantial resources, driving up prices in desirable areas.
Some chose to leave Montana upon retirement or in response to the rising costs.
Boomer homeowners here benefited greatly from appreciation e.g.
Missoulas median home price jumped about 66% in five years.
Many remained in place to enjoy that equity or passed homes to family.
Boomer buyers from out-of-state eagerly entered these markets, drawn by recreation and amenities.
Healthcare facilities in Kalispell expanded to serve the growing senior cohort.
It already had a sizable local retiree base, and by 2022 it gained many more.
Billings offers excellent medical services which is a big draw for seniors statewide.
Its housing remained more affordable than Bozemans, though prices rose substantially.
In general, eastern Montana (Miles City, Glendive, etc.)
did not see an influx of new retirees these areas are remote and lack the amenity draw.
Key Motivations Behind Boomer Housing Trends
Understanding why baby boomers made these housing choices is crucial.
Financial Considerations
Affordability was a double-edged sword.
At the same time, local boomers were keenly aware of rising costs.
Family and Community
Housing decisions were often about family.
Boomers with children and grandkids in Montana tended to stay or even move closer to them.
On the other hand, those whose families were elsewhere had to choose between Montana and reuniting with family.
Healthcare Access
As boomers age, access to quality healthcare becomes a larger concern.
In Montana, this factor influenced moves both within and beyond the state.
Those moving into Montana from out-of-state typically chose areas with good medical infrastructure.
Baby boomers were at the center of this story.
Looking forward, Montanas housing challenges and opportunities will remain intertwined with the baby boomers.
Until then, Montanas boomers will likely keep a firm grip on the housing markets direction.
