Owning a Home in Bozeman is Extremely Expensive Now

​How much does it cost to own a home in Bozeman?

Entry level condos start around $400,000 and those are mostly two bedroom units. 

If you want a three bedroom condo, it’s going to cost closer to $500,000. 

So how much is a monthly payment on a home in Bozeman?

During the pandemic, Bozeman (and Montana overall) saw a huge influx of people. Home prices in Bozeman doubled in around 3-4 years 2018/2019-2022. 

A mortgage payment, taxes, and HOA will cost about $3,000/month for a $415,000 home with a down payment of 10% ($41,500). And that number does not include Private Mortgage Insurance (PMI).

You can use mortgage calculators online to understand how much your home payment could be at currrent interest rates. Don’t forget to estimate the taxes, insurance, and HOA dues. Dues for HOAs in Bozeman average about $200-300/month. 

If you put less then 20% down on a home, the bank will add the PMI to your payment. PMI for a starter home in Bozeman could cost around $125-175 per month.  

Owning a home since late 2020 became a lot more expensive than renting in Bozeman. Average rent is around $2,000-2,200 for a 2 bedroom unit and close to $3,000/month for a 3 bedroom unit. 

What does it take to buy a home in Bozeman?

With extremely high home prices and higher interest rates (about 7.8% in late 2023), most people will need a six figure household income to afford even a starter house. If you have children, you’ll need a higher income to afford all your expenses. 

If you don’t make a six figure income, you’ll need to have a large amount of cash available to either reduce your loan amount or buy down the interest rate. 

Unfortunately, much of the middle class in Bozeman can no longer afford to buy homes, because the median income is about $50,000 lower than what’s required to affordably buy a starter home.