Home buyers in Bozeman can finally breathe a sigh of relief. Over the last two years, it has been incredibly difficult to buy a home in Bozeman as buyers faced unprecedented competition and record low inventory. But, the pressure on the real estate market in Bozeman is letting up. There are more homes for sale now than there have been in two years, the median sales price of a home has taken a dip, and sellers are becoming more motivated, meaning buyers finally have some negotiating power. Yes, buyers are facing higher interest rates than they have in some time, but there are ways to navigate this.
Depending on where you are coming from, Bozeman’s home prices can either be a sticker shock, or a relief. While Bozeman’s home prices are higher than the national average, they are significantly lower than metropolitan areas like Seattle, Portland, or Denver and comparably priced to similar mountain towns in the west. But what is driving Bozeman’s home prices up? High demand for housing, low inventory, and a high cost of living to name a few. Because of Bozeman’s remoteness, building materials are more expensive. The long winters and subzero temperatures slow the building process, making building a home more expensive. The quality of life is making Bozeman an increasingly desirable place to live, with low crime rates, fantastic school systems, close proximity to the mountains, and Montana State University. All of these factors drive prices higher.
There is often a significant difference between home prices in Bozeman vs. its surrounding areas. Belgrade, which is only 11 miles from Bozeman, sees home prices that are on average 30% lower than in Bozeman. Some people are willing to pay higher prices to be near the center of Bozeman, but many prefer to live outside of Bozeman for more affordable housing. We wrote an article that compares home prices in Belgrade vs. Bozeman, click here to read. Manhattan and Livingston and Three Forks are other great options for people looking to live near Bozeman. Click here to learn more about Bozeman’s surrounding areas.
If we’re being honest, every area in Bozeman is growing. In recent years much of the growth was on Bozeman’s west side where subdivisions and commercial areas have filled what used to be farmland west of town. Now, the west side is bustling, with a new high school, many new subdivisions, and commercial developments like Ferguson Farm working to offer amenities like grocery stores and restaurants to all the west side residents.
Most recently, the south side of Bozeman has started booming. In a recent article, we estimate that more than 1,500 residences are set to be built within a one-mile radius along South 19th Avenue. There are numerous apartment buildings under construction along with major subdivisions like Blackwood Groves and Gran Cielo underway.
Other areas of Bozeman are seeing significant change and growth as well. The Northeast area of Bozeman was once the industrial center of the city and a place that was long known as a lower-income area of Bozeman. Times have certainly changed over the last decade or so with the development of the Cannery District, the Brewery District, and the Mill District. While much of the development in this area has been focused on commercial, there are now several projects in the works that will bring new housing to Bozeman’s Northeast area.
Click here to read more about development in Bozeman.
It all depends on what you are looking for. The northwest side of town offers convenient access to shopping and amenities in central Bozeman and is close to several of the elementary & middle schools as well as Gallatin High School. A few popular neighborhoods on Bozeman’s west side are Harvest Creek, The Lakes at Valley West, Baxter Meadows, and the new Flanders Mill subdivision.
Bozeman’s south side also offers some great mature neighborhoods that are within close proximity to schools, parks, and trails. Some of the popular neighborhoods in this area are Alder Creek, West Meadow, and the Westfield subdivision. For newer construction, Southbridge and Home 40 are great up-and-coming neighborhoods on Bozeman’s south side.
If you prefer something a little more rural, neighborhoods on the outer edges of Bozeman offer quick access to the mountains, stunning views, and generally slightly larger lots. The Legends at Bridger Creek is a newer neighborhood nestled into the foothills of the Bridger Mountains. Triple Tree offers incredible views of the valley as well as access to the much-loved Triple Tree Trail. Wylie Creek offers large lots and incredible mountain views, and the Black Bull Golf Community is a popular option for those looking for expansive views, high-end homes, and maintenance-free living.
If you would like more information, check out our free downloadable guide to Bozeman's neighborhoods.
If you are thinking about buying a home in Bozeman, we can help! Click to contact us.
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