This week we sat down with Kathleen Vaughn to talk about what the construction industry looks like in Bozeman. Kathleen has more than 27 years of experience in Bozeman’s construction industry and just happens to be married to a builder. Listen to our conversation with Kathleen on the Bozeman Breakdown Podcast on Spotify or iTunes.
What does new construction look like in Bozeman right now?
Right now, Bozeman and the surrounding areas are booming. People are moving here every single day and builders are just trying to keep up with the demand for housing. Building codes and requirements are increasingly strict, and the city now enforces inclusionary zoning, meaning a certain number of lots in a neighborhood need to fit requirements for affordable housing. The increase in building requirements drives up the price of developing land. The developer then has to pass that expense on to the builder, who has to pass it on to the home buyer.
Are there still lots available?
The number of building lots available in Bozeman right now is incredibly low. While many people have mixed feelings about the new subdivisions being developed in Bozeman, those new subdivisions are providing much-needed land for homes to be built.
The price of land in Bozeman has increased more than 86% in the last 5 years, and even with this increase in price, the lots are selling fast. The number of days a lot spent on the market dropped drastically from its peak of 180 days in early 2017 to an average of 80 days in 2020.* This makes it difficult for the general public to purchase a nice lot in a new subdivision.
So, if you are not a builder and you want to buy a lot in Bozeman, what do you do?
The best thing you can do is hire a knowledgeable agent who knows what land will be coming up for sale before it goes on the market. Your agent can provide a plat map of the subdivision so you can make a decision on which lots you would like to pursue as soon as they come up for sale.
Where will we see the most new construction growth over the next few years?
The west side will continue to see most of Bozeman’s new construction growth because that is where most of the open land is. We can expect the city limits to keep expanding towards Four Corners with new subdivisions like White Horse Ranch and the Cottonwood Major Subdivision. Click here to see a list of the newest subdivisions in Bozeman.
As for the areas outside of Bozeman, Belgrade is seeing an incredible amount of new construction right now significantly increasing the number of homes on the market in the area. Subdivisions like the Henson subdivision and Story Creek subdivision are seeing a lot of new construction at the moment and that is expected to continue throughout the year. Click here to download our guide to moving to Belgrade.
Livingston is also seeing a surge in growth. There are a handful of new subdivisions in Livingston like the Northtown subdivision where there are still many lots available for sale or the Discovery Vista subdivision where you can find new single-family homes at an affordable price. Click here to download our guide to moving to Livingston.
*stats according to the Gallatin Association of Realtors
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