Missoula, Montana… Such a beautiful and energetic place to visit and live. The diversity and culture are second to none and we are proud to live here. With all the great things to love about Missoula, the price of real estate is not one of them.
Lately, the topic of Missoula conversation has been the price of housing. It is no secret that real estate value has shot to the moon and people are scratching their heads as to why! Why has prices gone so high, so quickly? Why now? And will it slow down?
The root of all evil!
I am sure most people are getting tired of hearing that the COVID pandemic is responsible for all the world’s problems and if there is an issue with anything, we scream,” COVID!!” Well, one of the reasons we are in this mess is because COVID made it hard for developers and builders to add inventory to the market.
When the pandemic hit, Missoula county and city officials had to start working from home. While working from home, it really slowed down all of the development planning and permitting that is needed to advance the projects. The projects have been in the works for a few years but when you can’t finalize plats and building permits, the houses that Missoula desperately needs are not being built. And those houses need to be built! Another issue that we have noticed is that there is a major shortage of skilled laborers and the supply chain is slow to deliver building materials to these projects.
Will this change?
Since the pandemic mandates have relaxed, people have been heading back to the office and local building is starting to pick up. You may have noticed in the news lately that sub developments and housing projects have been getting approvals for plats and permits.
What does this mean for the near future of Missoula real estate? With new construction starting to pick up, they can only build so many homes and at such a speed. They all feel like they are way behind and the lack of subs and materials is making their jobs even harder. Even though construction is picking up, I do not believe that we will see much of a change for the next couple of years. Inventory is at a premium but we need to have patience with developers and builders to help create the inventory we need. Once the inventory starts to hit the market, I believe that the market will soften up and it will be more of an even playing field between buyers and sellers.
Another issue that we are keeping an eye on is the fact that inflation is on the rise. With inflation going up, that could definitely hinder the cost of new construction. The price of building materials will start to go up and the cost to transport those materials will also be impacted with the rise of gas prices. These are just a few things that we are watching for and will pass any new information on to you when we see it.
If you have any questions on the current Missoula real estate market, please call me at
(406)926-6767
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