We have never seen such an influx of people moving to Bozeman like we have this past year, however, we haven’t heard much about those who are leaving. According to the U.S Census Bureau, while 9,000 people moved to Gallatin County over a 5-year period, over 6,600 people moved away. Here are five reasons people are leaving Bozeman.
1. Cost of Living
As of 2018 all living expenses aside from utilities and transportation were above the national average in Bozeman. Most notably, housing costs were more than 8% above the national average. That may not seem like much compared to places like Portland (79.8% above average) or Denver (36.9% above average) but with the average wage in Gallatin County coming in at more than 25% below the national average the struggle with higher than average housing costs really starts to hit home. This past year housing prices have sky-rocketed making it even harder for many to live in Bozeman.
The Bozeman Area Labor Report found that the monthly mortgage-to-income ratio in Gallatin County was similar to the mortgage to income ratio in Bend, OR and Seattle, WA. As of September 2019, the median cost of a home in Bozeman was more than $400,000, making it extremely difficult for many people in the area to purchase a home of their own.
And of course, these rising home costs are affecting Bozeman’s rental market as well. According to Rent Jungle, the average rent for an apartment in Bozeman was $1,438 - a 22% increase from the previous year. For many people, the high cost of living in Bozeman has been a deal-breaker.
2. Job Opportunities
While Bozeman is becoming known as a hub for high-tech businesses, start-ups, and entrepreneurial activity, career opportunities in the area are still limited especially compared to larger metropolitan areas. Major companies like Schedulicity, Simms, and Oracle are all based in Bozeman and bring a large number of jobs to the area. But for higher-wage positions like these, competition can be stiff. Not only does Montana State University churn out more than 3,300 graduates each year (as of the 2018-2019 academic year) but college graduates from other universities are also drawn to the area which means that the competition can be high for positions that require a college degree.
Because Bozeman has such a highly qualified workforce, many workers find themselves underemployed, eventually leaving Bozeman in search of better opportunities for career advancement and higher-paying positions.
But for those looking for positions in retail or service industries in Bozeman the scales are tipped towards the employees. There is such a shortage for service industry workers in Bozeman at the moment that many businesses have been forced to reduce their hours or close altogether.
While wage growth in Gallatin County has been accelerating quickly, most industry wages in Gallatin County are well below national averages. Low-wage positions in Bozeman like service industry, groundskeeping or sales are close to the U.S average, but when it comes to wages for higher-paying positions, Bozeman is falling short. People with college experience tend to earn less in Montana than comparable earners nationwide. According to a 2017 U.S Census Bureau, survey, those with higher education degrees earn 22% less than the national average in Gallatin County while workers with a high school diploma or less earn relatively equal wages to the rest of the nation.
So why the disparity?
Bozeman is a highly educated area. 57% of residents have a college degree, compared to just 32% nationwide. And while a highly educated workforce is great for the city, it does mean that many people who hold a degree may end up underemployed. While Bozeman’s tech scene is growing, tourism is still a major part of our economy and our job market. In Bozeman, it is not uncommon at all to find people with higher education degrees working as servers, store clerks and raft guides.
Bozeman is also becoming a great incubator for entrepreneurial activity and start-up businesses which bring a number of new jobs to the area. But, as stated by the Bozeman Area Labor Report, younger and smaller businesses do tend to pay less than established, larger companies.
According to the Bozeman Area Labor Report, migration patterns show that many of the people leaving Bozeman are moving to the Seattle-Tacoma area, Denver, Fort Collins, and Spokane. While these people may be leaving Bozeman for a number of reasons, high numbers of migration to these urban areas do lead to the assumption that higher wages are a factor.
4. The Weather
While the majority of people living in Bozeman likely take part in some winter sport, there are a number of people living here who really don’t like winter, at all. And if we’re being honest, Bozeman is a pretty tough place to live if you don’t like cold temperatures and lots of snow. Winter in Bozeman can begin in September and last until May, and while the area is known for its sunny “bluebird” days, the temperatures can drop well below zero for weeks at a time.
After a particularly tough winter, we will see several people sell their homes to move somewhere warmer. According to the U.S Census Bureau, Washington was the top out-of-state destination for people leaving Gallatin County, and California was the second. Living in Montana can be tough, and it’s definitely not for everyone!
5. Bozeman Is Not What It Used to Be
Before Bozeman was listed on just about every best place to live, to retire, to visit, to ski list out there, it was just a quiet little town that was bypassed by visitors on their way to visit Yellowstone National Park. Now, Bozeman is known as “Bozeangeles” to the rest of the state, and while our economy is thriving, our traffic has become congested, our open land is being filled with subdivisions, and our trailheads are getting crowded.
Bozeman is not what it was 20 years ago and for some people that is reason enough to leave. According to the U.S Census Bureau, 42% of the people leaving Bozeman are moving somewhere else in Montana. Yellowstone County (Billings) is the most popular, Missoula is the second, and Lewis & Clark County (Helena) is the third. While Bozeman’s urbanization is drawing so many people in, it’s also the same reason that is driving many people out. If you are one of those people, click here for 10 Montana towns to escape the Bozeman boom.
Click here to find out who is moving to Bozeman, Montana. Or just for fun, click here to read the 10 Things You Should Know Before Moving to Bozeman.