The Missoula Housing Market

Oliver Beck, Reporter

     The housing market in Missoula Montana is running quite high in terms of price during the start of 2020 and unfortunately it seems those prices will not be declining any time soon.  This creates a problem that’s especially relevant to those graduating from the University of Montana. These students fall in love with the town but at the rate that the housing market is going up they will not be able to find a home to live in with little to no money coming out of college. 

      On average the annual salary of a student coming out of the University of Montana is around $32,000 six years after enrollment and after ten it is $41,000 which is 20% above the national average but no where near the housing market with averages of above 300k.

 

     Here is a short and crisp Missoula housing market forecast for the 3 years ended with the 3rd Quarter of 2021. The accuracy of this forecast for Missoula is 85% and it is predicting a positive trend. The LittleBigHomes.com estimates that the probability for rising home prices in Missoula is 85% during this period.

 

     The housing market at this time is very difficult for college students leaving the university of montana is hard since they are not leaving school with a lot of money in the bank. What is especially difficult for these students is that they fall in love with the town of Missoula and cannot afford to stay and live here. 

 

     There are a lot of apartments that are being built near east Missoula which should be for a cheaper price but the commute will also be difficult for these college students. The benefit to the University Of Montana. 

 

     Following the real estate market decline in 2007 in the U.S., single family rental homes became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate.

     Single family rental properties have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.

     The U.S. single-family rental market has seen steady rent increases between 2010 and 2019. According to CoreLogic’s latest Single-Family Rent Index (SFRI), which analyzes single-family rent price changes nationally and among 20 metropolitan areas, it shows a national rent increase of 3% in April 2019, as compared to 2.8% in April 2018.

     The increases that are predicted within the next five years in the Missoula housing market are not a good incline for college students. This will not allow for some students to stay in Missoula.