The State of Housing and Rentals in Bozeman, MT

As of late December 2022, more rentals appear to available in Bozeman than anytime in the recent past. 

Rental Professionals has 27 condo or townhome rentals that are currently vacant, according to their website. The prices range from $1,525 for a 2BR/1BR (1,000 sqft) to  $2,895 for a 3BR/2BR single family house at 1,661 sqft.  Most of these available units are about 1,000 sqft for $2,000/month. That could accommodate a family of three or two housemates.  

Household income would need to be about $72,000 per year for a $2,000 rental to be affordable ($2,000 x 3 x 12). To be more financially stable, a household should make $96,000 if renting a place for $2,000/month (2,000 x 4 x 12). 

If a family of three pays $2,000/month in rent with a single earner and a stay at home parent, the income earner making $30/hour or about $62,000/year would force them into a very tight financial position to provide for the family. It would be easy for them to go into credit debt, not be able to save money, and not have a savings buffer to pay for an emergency expense. In 2018 or 2019, that income level would have been somewhat comfortable in Bozeman, but with record high rents and 

For Bozeman to be affordable to a family of three renting, (not owning a home) the breadwinner would need to make at least $34.60/hour to reach that income level of $72,000/year for their $2,000/month of rent to be sustainable. However, if that family has extra medical expenses, student loan debt, or special circumstances increasing their expenses, $72,000/year would not be enough to live comfortably in Bozeman.

Many low and average income earning couples and families have left Bozeman due to not making ends meet and needing to seek better cost of living to income balance in other areas of the country, like the midwest.

Updates about housing in Bozeman:

Rental market data shows signs of hope for Bozeman, Bozeman Chronicle
12/25/22
The 4% [vacancy] rate is double the vacancy rate of 2.01% at the end of 2021, and more than double the rates earlier this year, which were 1.51% in the first quarter and 1.32% in the second quarter. The rate in the third quarter was 2.77%.

"...there are about 1,300 more apartments under construction in Bozeman right now."

Bozeman group pushing city leaders to change short-term rental laws, KBZK
12/14/22

'The faucet has shut off': Bozeman area housing market sees signs of cooling, but prices remain high, Bozeman Chronicle 
9/3/22
“It’s not necessarily a ball of fire anymore, where something gets listed and you have all of five seconds to go see it or else there’s 20 offers on it,” said Aaron Cribbes, an advisor with Engel and Volkers.

“That million dollar property which would have, three months ago, had six or seven offers may only have one (offer) in a couple of weeks, and it might not be full price,” said Arison Antonucci-Burns with Aspire Realty. “I think it’s patient, more than anything it’s becoming a more patient market, it’s not quite as aggressive.”

Though things may be cooling slightly, there hasn’t been a steep decline in prices: The median sale price for a single-family home in Gallatin County’s market was $812,750 in January of this year, according to the realtors association. It was $450,000 in January 2020.

In July, according to the Gallatin Association of Realtors, the median price for a single-family home in July was $745,000. That is an increase of 9.2% from last July, but down from June 2022’s median price of $752,500, May’s median price of $812,000 and April’s median of $823,750.