According to a recent report by The Daily Montanan, Montana is facing a severe lack of affordable housing, with roughly 80% of mortgage holders in the state having rates 2% to 3% below current rates. This has essentially frozen the housing market, as current homeowners would face significantly higher mortgage costs if they were to move. Rising house prices, which have more than doubled in less than a decade in most Montana cities, have also exacerbated the problem.
The lack of affordable housing is not only affecting those struggling to pay mortgages or rent but is also impacting unexpected residents, such as the University of Montana law school’s inability to hire a dean due to housing affordability issues. The Federal Reserve Bank has identified the housing crisis as a key factor in economic development problems, as workers cannot move to take better jobs or afford to move to other communities.
Despite a net negative population replacement rate, Montana’s population continues to grow due to in-migration from other states. The state’s unique housing trends, coupled with limited supply and high demand, have led to meteoric price increases and record-low affordability levels in every metro region. The current housing gap in Montana is estimated to be over 14,000 units, highlighting the urgent need for increased housing production to meet demand.
Source
Photo credit www.kpax.com