Learn more about the housing market in Montana

Every state is unique when it comes to the real estate market. That’s why it’s critical to understand the market you live or operate in. Whether you’re renting, buying, or selling, it will impact many aspects of your life.  

Key Takeaways

1. Montana’s housing market is stabilizing going into 2026, with slower price growth, modest inventory improvement, and easing mortgage rates that have reduced pandemic-era competition.
2. Median home values remain high compared with national averages, but trends vary significantly by region, with some cities seeing price declines while others continue to appreciate.
3. Construction activity and new housing permits remain relatively strong, helping expand supply and moderate long-term price pressure in select markets.
4. Foreclosure activity remains among the lowest in the nation, indicating generally strong owner stability and limited signs of systemic distress in the market.

Montana Housing Market Overview

As one of the largest states by area in the United States, Montana is very geographically diverse, with both mountain ranges and grasslands. According to data from IBISWorld, some of the sectors that contributed the most to the state’s 2025 GDP were Healthcare and Social Assistance, Retain Trade, and Professional, Scientific, and Technical Services. However, the highest contributor to the state GDP in 2025 was Real Estate, Rental, and Leasing, with a growth rate of 4.1%. For this reason, let’s look further into the notable housing market in the state during 2026.

At the start of 2025, analysts expected Montana home prices to keep rising and mortgage rates to stabilize. Through late 2025, median home values in Montana climbed modestly while sales activity shifted toward balance, matching those forecasts.

Mortgage rates nationwide fell from near 8% in late 2023 to the mid-6% range through 2024–2025, easing borrowing costs for buyers. Montana followed this trend, helping support a steadier housing market as the state moves into 2026.

Montana Market Trends 

To understand the Montana real estate market, it’s important to keep up with trends. Let’s look at some key ones in Montana. 

Note: These statistics are based on Redfin’s monthly housing data from November 2025. 

Median Home Price 

The median price of a home in Montana as of November 2025 was $530,700 according to Redfin’s monthly housing market data. This is a decrease of 2.8% from the previous year. In Helena, the capital of Montana, the median prices were slightly lower at $437,000, according to Redfin. This was a decrease of 7% from the previous year. Appreciation and depreciation is not consistent in every major city in Montana, and it is important to remember that statewide trends are aggregates of an array of housing markets within a state. 

Median Days on Market (DOM)

Days on market (DOM) is a measure of the average length of time a home remains listed on the market before being put under contract. A lower DOM signals a highly competitive seller’s market with more pressure on buyers to make higher offers and remove contingencies. A higher DOM signals a buyer's market as sales are slower and sellers have less leverage.  

The median DOM in Montana in November 2025 was 93 days, according to Redfin. This is up 7 days the previous year. This means that, on average, listings spend nearly three months on the market before being purchased. This also indicates that the market has become cooler since this time last year. As expected, average DOM generally rises in the colder months, when less people are buying homes and listings are less competitive. 

New Supply Statistics 

In 2025, Montana continued to issue new housing permits at a rate above the national average. Data from the U.S. Census Bureau’s Building Permits Survey shows that Montana authorized thousands of new private residential units through the year, while FRED’s state permit series confirms steady permit activity relative to population growth. This level of construction activity expands housing supply and helps relieve pricing pressure in several Montana markets as the state moves into 2026.

Property Tax Rate

According to Rocket Mortgage, the average property tax rate in Montana is 0.74%. This average is the 18th lowest in the country, with an average annual property tax of around $1,634.00. However, it is important to keep in mind that this statistic reflects the average of a lot of data in a populous state with significant geographic and economic diversity. Tax rates are likely to vary depending on the value of a home and its location in the state.

Foreclosure Rate in October of 2025

In October 2025, about 1 in every 20,918 housing units in Montana received a foreclosure filing, according to ATTOM. Montana recorded 25 total filings during the month and ranked 49th nationwide, making it one of the lowest foreclosure-rate states. Foreclosure activity was down 46.81% from September 2025, but up 19.05% from the prior year.

Hottest Local Markets in Montana

Billings

By a considerable margin, Billings is the most populous city in Montana. Located southeast of the state’s capital city, Billings has a different housing market. According to Zillow, the median sale price for a home in Billings in November 2025 was $389,357. Its median DOM is 31, meaning that its housing market is considerably more competitive when considered against the state as a whole. Some of the most popular neighborhoods in Billings are Billings Heights, West Central Billings, and North Central Billings.

Helena

Located in the western side of the state, Helena is the capital of Montana. According to Redfin, its median housing price was much lower than the statewide median at $437,000. This is a decrease of 7% from the previous year, but it is still a steadfast market within the state. The most popular neighborhood in Helena going into 2026 is Downtown Helena

Missoula

Behind Billings, Missoula is the most populous city in Montana, and is located northwest of the capital city Helena. Its median home price in November 2025 was $551,907, according to Zillow. This is a 0.3% increase from the previous year. Like many other cities in Montana—and around the country—median prices began to spike in the summer of 2020, and prices are steadily continuing to appreciate even in 2026. Some of the most popular neighborhoods in Missoula are Franklin to the Fort, John Mullan, and Moose Can Gully. 

Economic Factors Impacting the Montana Housing Market

A holistic view of Montana’s housing market requires a basic understanding of the main economic drivers affecting the market. Let’s take a look at a few critical ones below:

Mortgage Rates

Mortgage rates are a common cause of concern for would-be homeowners across the U.S. in 2026. As previously mentioned, national averages have dipped from previous record highs, and Montana is no different. According to Zillow, the housing market in Montana is seeing average interest rates of around 5.99%. This is below even the national average, and the rate should continue to hover near 6%.

Inflation and Cost of Living

Mortgage rates are tied to inflation, another massive contributing factor to the affordability of housing and the state of housing markets in general. Inflation has increased the cost of living for many across the U.S., including in Montana. This means fewer people can truly afford to limit housing costs to less than 30% of their monthly income.

Population Changes and Demographics

A changing population can also have implications for the housing market. According to the U.S. Bureau of Labor Statistics, the unemployment rate in Montana is 3%, making it the 6th lowest rate in the country. This low rate suggests a thriving and healthy jobs economy that is bound to be attractive to prospective homeowners in the state. 

Montana Housing Market Forecast 2026

As previously mentioned, experts considered the appreciating housing market Montana faced in previous years and predicted that prices would continue to rise throughout 2025. This has proven true over the course of the past year, though steadying interest rates and a hope for increased supply in the housing market signified by an increase in sales may indicate a slowing growth in prices going into 2026.

Likelihood of Montana Housing Market 

Though the way prices in the Montana housing market have continued to surge may seem concerning, experts maintain that a crash is very unlikely in 2026. There are many reasons for this, including a very healthy economy signified by a low unemployment rate, interest rates that have significantly settled from last year, and a growing number of people who are moving to the state. The market seems poised to continue appreciating, but it is unlikely to reach any significant or concerning threshold in the near future.

Forecast for the U.S. Housing Market

Now that we’ve looked at Montana’s housing market, let’s zoom out a little bit. What about the U.S. housing market? What do you need to keep an eye on in the coming years?  

The United States' current median existing-home sale price is around $415,200 per the National Association of Realtors. The inventory, though, remains low. A balanced market typically has a 5-to-6-month supply, but the current figure is 3 months, keeping conditions constrained.

We’re currently in a seller’s market with buyers looking at continued rising house prices—although they are rising at a slower pace compared to previous years.. The same trend can be seen with renters. Housing continues to appreciate, in general.

Dr. Lawrence Yun, Chief Economist and Senior Vice President of Research, National Association of Realtors, believes the housing market will appreciate 15 to 25% over the next five years. He thinks that the seller’s market will continue because housing inventory will remain low. In 2026, he predicts that existing home sales will rise an additional 13%. Yun expects mortgage rates to stabilize at the lower end of the current 6-7% range through 2025 and 2026 as the Federal Reserve continues gradual rate cuts. There's an anticipation of a more balanced market in the coming years, with moderate price growth and a greater amount of Americans re-entering the market.

Hybrid work also impacts the housing market. This shift in work culture means suburbia will continue to grow. States like Texas, the Carolinas, Tennessee, and Florida should see continual growth.

The number of single-family homes built decreased over the past couple years while the number of multi-family homes increased due to lower prices and a demand for affordable housing. Year-to-date single-family housing starts were down about 7.1% in 2025, whereas starts for buildings with five or more units were up roughly 14.5% Higher mortgage rates and inflation (affecting price of materials) were the main causes.

Lower income households continue to struggle in the current housing market. This trend appears likely to continue into the foreseeable future. According to the National Association of Home Builders, approximately 74.9% of U.S. households were unable to afford a newly built median-priced home in 2025. Without enhanced supply or helpful subsidies, the outlook is that many Americans will still wrestle with housing affordability in the years to come.

Montana Rental Market

The rental and buying market are obviously closely linked. When home prices fall, landlords are more likely to buy properties to rent out. Home prices and rental prices are correlated as well because a hot market means prices rise.

Renter affordability remains a key issue in 2025 and into 2026, even though rent growth has cooled from its pandemic-era peaks. According to recent Zillow reports, national rents were largely flat in mid-2025, with the typical U.S. rent near $2,000 and rising only about 2.4% year-over-year, with incomes finally outpacing rental costs in many areas.

Despite slower rent increases, rents continue to outpace wage growth in many regions, meaning many tenants still spend a large share of their income on housing and other essentials, widening the affordability gap.

Higher borrowing costs and tighter financing conditions have affected new multifamily development. The Federal Reserve’s Senior Loan Officer Opinion Survey reports that standards for certain commercial and multifamily loans have tightened or remained unchanged, which can slow new rental supply expansion.

As a result, the rental market is more stable than during the sharp increases of previous years, but affordability pressures persist for many renters nationwide and in states like Montana, especially in high-demand areas where rents remain elevated relative to local incomes.

This short summary leads directly into Montana’s current rental market. Below are just a few of the current trends for Montana’s rental market based on data pulled from Zillow:

Montana Rental Market Key Trends

• Median rent: $1,797 

• Month-over-month rent charge: -$3

• Year-over-year rent charge: +$47

• Available rentals: 2,057

Conclusion

Montana’s large geographic footprint creates wide variation across local housing markets, but statewide conditions heading into 2026 appear generally stable. Home prices have continued to rise at a slower pace, inventory has improved modestly in some areas, and easing mortgage rates have helped moderate competition. Buyers and sellers should continue to watch regional differences, interest rates, and new construction trends as the market evolves.

FAQs

What is the current state of the Montana housing market heading into 2026?

The Montana housing market appears stable but regionally mixed, with modest price appreciation in some cities and slight declines in others. Easing mortgage rates and gradual supply gains have led to more balanced market conditions and fewer highly competitive bidding environments.

Are home prices in Montana still rising?

Home prices in Montana have risen more slowly than in prior years, with statewide median values showing modest year-over-year changes. Some metros have experienced small price drops, while others continue to see appreciation, reflecting the state’s highly localized market dynamics.

Is Montana currently a buyer’s market or a seller’s market?

Montana is trending toward more balanced conditions, but market status varies by region. Areas with higher inventory lean toward buyer-friendly conditions, while popular metros with limited listings still tilt toward sellers. Overall, competition has cooled compared with peak pandemic years.

How do mortgage rates affect Montana homebuyers going into 2026?

Mortgage rates have declined from late-2023 peaks, easing borrowing costs and encouraging some previously sidelined buyers to re-enter the market. However, affordability challenges persist in higher-priced metros, meaning buyers still need to plan carefully around monthly payment capacity.

Are foreclosure rates a concern in Montana?

No. Montana remains one of the lowest-foreclosure states in the country, with very few filings relative to total housing units. This suggests strong loan performance, stable household finances, and minimal systemic risk heading into 2026.