MISSOULA, Mont. — In a subdivision near the north end of town, a number of apartments and maisonettes have sprung up in the past three years.
It’s part of a larger effort, including new zoning laws, to help provide affordable housing to Montanans who have been priced out of the market, said DJ Smith, president of the Montana Association of Realtors.
“For Montanans, it has become increasingly difficult to find a home that meets their needs and is affordable,” he said.
A influx of out-of-state residents Relocation to the Big Sky State has sent demand skyrocketing, while a labor shortage keeps housing supply tight. The result is not just more condos and duplexes, but an issue that is more acute in a Senate race that could ultimately decide who controls the chamber.
While some Democrats are sweating it out in close races across the country, no incumbent has a tougher re-election challenge than Democratic Sen. Jon Tester, who will need to win a state Trump won 16 percentage points in 2020.
Political forecaster Cook Political Report It recently moved the race from a swing to Republican leanings, and in the most recent poll from the AARP found Sheehy had an 8-point lead, just within the margin of error.
Tester has made housing a cornerstone of his campaign — specifically how to help Montanans who have been disbursed as more people have moved into the state, driving up housing prices.
“We’re seeing a lot of people coming into the state, rich people, who want to try to buy our state, change it into something it’s not,” Tester said at a June 9 discussion hosted by the Montana Broadcasters Association .
Tim Sheehy, the Republican candidate, is a former Navy SEAL who founded an aerial firefighting company in Montana. He blames high housing costs on inflation and blames inflation on laws supported by President Joe Biden and passed by Tester.
“The biggest challenge in growing our company has been getting people to come to Montana and absorb these crazy housing costs,” Sheehy said during the discussion. “It’s a direct result of policies coming from the Biden administration.”
A new home for sale in Missoula, Montana, where home prices have skyrocketed in recent years on September 4, 2024.
CNBC
Inflation and housing costs are a major concern across the country, but few places are worse than Montana when it comes to affordability. The National Association of Realtors rated Montana as the least affordable state for home buyers. Housing prices in the state have increased by 66% in the last four yearsaccording to the US Federal Housing Industry Price Index – faster than 50% increase nationally.
Smith said some Montanans are no longer able to afford the communities they grew up in because those moving to the state have sold their homes in more expensive parts of the country and can buy with cash.
The median income for a household in Montana is $67,631, according to US Census Bureau. That means the median home price in Missoula, $568,377, according to the Missoula Association of Realtors, it’s high for the average Montanan, but attractive to those looking to leave higher-cost states for Montana’s mountains, national parks, and abundant space.
“People in Colorado, California, would sell their homes for over a million dollars and have a lot of equity to buy here in Montana,” Smith said. “This led to a record number 30% of our homes last year it was bought with cash.”
Missoula developer Andrew Weigand, owner of Butler Creek Development, said prices are also affected by labor shortage in the state. Subcontractors, such as plumbers and electricians, are in short supply and costs are higher as a result, he said.
“If you have a pool of three or four subcontractors to use, rather than 30 or 40, you’re not going to have as competitive a market as in other parts of the country,” he said.
Weigand said he worries the issue will get worse because many subcontractors are aging and there are fewer people to replace them.
“Many of our trades are aging. They’ve been doing it for 20 years [or] 30 years, and they’re looking at retirement,” he said. “There aren’t many … young professionals or young people interested in doing these jobs to fill that need.”
Tester has several suggestions aimed at helping Montanans struggling to afford a home. These include housing extension grants and help with home repairs. He has also proposed a tax deduction to incentivize mobile home park owners to sell their property to Montana resident coalitions rather than developers who could use the land to build more expensive homes.
While Sheehy blamed high home prices on inflation, during the June 9 debate he called for expanding trade programs in the state to help with the shortage of contractors needed to build homes.
