As of March 2018, the average price of a single-family home in Bozeman was 27% higher than the average price of a home sold in Belgrade. That’s a significant difference in price for two towns that are only 11 miles apart. So, what’s up with the home prices in Bozeman vs Belgrade? Let us break it down for you.
BOZEMAN'S GROWING POPULARITY
In the past several years, Bozeman has seen its fair share of fame with countless publications such as Conde Nast Traveler and the LA Times naming it one of the top places to visit. As a result, tourism in Bozeman is at an all-time high. Bozeman Yellowstone International Airport is the busiest airport in the state with nearly 1.2 million passengers per year, and Montana State University – a key to Bozeman’s thriving community, continues to reach record enrollment numbers year over year. Bozeman’s growing recognition has made it the fastest growing town of its size in the nation. With this growth, comes an increase in demand which has pushed Bozeman home prices to record highs.
BUT THE DEMAND IS NOT LIMITED TO BOZEMAN
While the number of homes sold in Bozeman in the past year was nearly 65% higher than the number of homes sold in Belgrade, Belgrade’s growth has been far from stagnant. The number of homes sold in Belgrade has been steadily rising year over year and the average sale price of a home has increased 62% in the last five years. With the average sold price of a single-family home in Belgrade currently sitting just under $340,000 compared to nearly $465,000 in Bozeman, many residents are choosing Belgrade as a less expensive alternative.
SO, WHY ARE BOZEMAN PRICES SO MUCH HIGHER?
Montana State University is a big factor in Bozeman’s high-demand housing market. Montana State brings many students and employers to Bozeman who of course, need a place to live. Many of these residents have limited flexibility in terms of housing location which drives the prices of housing in Bozeman higher.
Bozeman has several areas of town where homes are listed at premium prices. Homes in Bozeman’s historic neighborhoods sell for higher than average due to the character of the homes, large lot sizes, and location. On Bozeman's historic Willson Avenue, homes are listed between $450,000 and $1,750,000. A similar trend continues downtown where homes are listed for an average of $827,344.
But for many Gallatin Valley residents, location is a less important factor than the price of a home. Homeowners in Belgrade enjoy significantly lower housing costs along with great schools, fantastic mountain views and plenty of parks and recreational areas.
The truth of the matter is that while they are neighbors, the cities of Bozeman and Belgrade are very different in character. For some, Bozeman’s thriving culture, classic historic neighborhoods and proximity to both great restaurants as well as the mountains is worth the increase in price. For others, the affordability, mountain views and a little bit more elbow room offered in Belgrade are more appealing.
If you are looking for a home in either Bozeman or Belgrade, let us know. We will be happy to help you find a home that will work for you. You can see all homes for sale in both Bozeman & Belgrade here.
*statistics courtesy of Gallatin Association of Realtors