Home and land values in the state are rising due to the pandemic and the supply chain
BOZEMAN – The rising cost of inflation in the real estate and land market in the state of Montana is a key issue for residents and investors.
Director of the University of Montana’s Bureau of Business and Economic Research, Patrick Barkey, spoke at the 47th Annual Economic Outlook Seminar and notes changes in the market during the pandemic.
“What we’ve really seen is about three years of growth accelerating in a year,” Barkey said, “The pandemic has driven plans to move, relocate, work remotely — of course – resulted in the acceleration of these plans.”
Barkey goes on to explain that the pandemic has opened the door for those working remotely, retiring or looking to diversify their portfolio to invest in land.
“The appeal of the land is that it is an asset that throughout history has kept pace,” Assistant Professor Daniel Bigelow said.
Bigelow has studied land value trends around the country and sees the trend in Montana fueled by the lack of available supplies.
“The wood was through the roof, it was really hard to build,” Bigelow said.
The availability and affordability of resources during the pandemic, in addition to the growing desire to relocate to Montana, and investors seeking to purchase land have created a “maelstrom of mixed things into one boom,” Barkley said.
A boom that could die down with a rise in mortgage rates, Barkley said.
“It can be a bit like air coming out of a balloon…you’ll see a series of activities to get in before the fares go up,” Barkley said.
That, along with proposed policies to address the statewide housing crisis.