Montana Tops the List for the Least Affordable Homes in America

Montana, known for our wide open spaces and beautiful landscapes, now holds a less-than glamorous title. We've been named the least affordable state for buying a home.

According to a new report from Visual Capitalist, housing prices in Montana have officially outpaced what most residents can afford, making it harder than ever for locals to stay put.

Home Prices Soared, But Paychecks Didn’t

Over the past few years, home prices in Montana have exploded, climbing between 66% and 85% in some areas. The problem? Wages haven’t kept up.

While the average household income is under $50,000, homes are regularly listing for $500,000 or more. That kind of gap puts homeownership out of reach for many Montanans, especially younger buyers or families trying to get ahead.

Locals Are Getting Priced Out

The dream of owning a home in your hometown is slipping away for a lot of people. Even those with decent-paying jobs are struggling to afford rent, let alone a mortgage.

In places like Missoula and Bozeman, residents are finding themselves spending well over 30%, sometimes even 50%, of their income just to keep a roof over their heads.

How Did Montana Get Here?

A mix of things pushed Montana to the top of the unaffordability list. More than 45,000 people moved to the state since 2020, many of them from higher income areas.

At the same time, new housing construction didn’t keep pace. Add in rising construction costs and an increase in investors scooping up properties, and it’s easy to see how prices got out of hand fast.

People Are Moving Just to Afford a Home

In Bozeman, for example, the average home price has topped $740,000. One couple shared that they ended up moving to a spot in the middle of Butte and Anaconda, about 100 miles away from Bozeman, just to find a home they could afford.

Their new place cost around $270,000, a fraction of what they'd pay in Bozeman. It's a common story these days in Montana: moving farther from work and family just to find housing within reach.

Even Workers Can’t Afford to Live Here

It’s not just first time homebuyers feeling the pinch. Essential workers such as teachers, healthcare staff, and service industry employees are struggling to live in the communities they serve.

Shelters in cities like Bozeman are even seeing working adults who can’t afford rent. That’s a big red flag for the state’s future.

What’s Being Done About It?

Montana leaders have started making changes. Zoning laws are being updated to allow for more housing density, and there’s talk of increasing support for affordable housing projects.

Still, many say it’s not enough. Advocates are pushing for more action such as limiting speculative real estate purchases and speeding up construction of low to middle income housing.

Montana might be a gorgeous place to live, but for many residents, it's becoming nearly impossible to afford staying there.

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Without real solutions to close the gap between home prices and income, the people who make Montana what it is may have no choice but to leave. And that’s a cost the state can’t afford.