Bozeman Has More Homes Under $350K Than Belgrade—Here’s Why That’s Surprising

Bozeman has long been synonymous with high real estate prices, often pushing first-time buyers and budget-conscious homeowners to explore more affordable nearby options like Belgrade. Traditionally, Belgrade has served as the go-to alternative for those priced out of Bozeman’s competitive market. 

But right now, there are more homes for sale in Bozeman under $350,000 than in Belgrade, signaling a potential shift in the area's housing dynamics and raising important questions about inventory trends, development patterns, and housing policy.

Breaking Down the Numbers: Listings Under $350K
 - Bozeman: 7 homes for sale under $350,000

- Belgrade: 3 homes for sale under $350,000

To put it in perspective:

- Bozeman currently has 302 active residential listings, meaning about 2.3% of listings are under $350K.

- Belgrade has 165 active residential listings, with just 1.8% under $350K.

While the numbers are still low, this is still a surprising twist in our local market.

What's Driving the Inventory Shift?

While the percentages are close, the fact that Bozeman—a city often associated with higher prices—currently offers more budget-friendly listings than Belgrade is an unexpected shift that may speak to broader market changes.

An uptick in inventory, particularly in Bozeman:

Bozeman’s broader mix of housing types—including a growing number of condos, townhomes, and apartment complexes—has fueled an increase in inventory. This diversification is largely driven by sustained investment in multifamily developments and a citywide push for higher density. In contrast, Belgrade’s growth, while notable, remains focused primarily on single-family subdivisions, limiting the variety—and often the affordability—of available housing options.

Bozeman vs. Belgrade’s Growth Plans

Bozeman and Belgrade have taken different approaches to housing policy. Bozeman has tried to encourage density and affordability through zoning incentives – for instance, an Affordable Housing Ordinance (passed in 2022) that offered developers relaxed height/parking requirements if they include affordable units in their developments.

Belgrade, by contrast, only recently updated its growth policy to allow more multifamily and mixed-use. It remains a smaller community where large apartment complexes are fewer and public affordable housing initiatives are less developed. There is land and willingness to grow (Belgrade is annexing and rezoning for high-density per its growth plan, but that will take time to materialize. 
 

What This Means for Buyers in the Gallatin Valley

While Bozeman has long held a reputation for high real estate prices, the current market reveals a shift. This trend reflects not only changing inventory levels but also the impact of local housing policies and development strategies. For those navigating the Gallatin Valley housing scene, keeping an eye on these shifts could open doors to unexpected deals.

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