T
he city of Bozeman, nestled among Montana's mountains, has experienced a significant boom in recent years with an influx of new residents. The population now exceeds 58,000 people, according to the U.S. Census Bureau, while Gallatin County, where Bozeman is located, has over 126,000 residents. The city boasts a dynamic real estate market, with record-breaking prices and high demand for single-family homes priced above $2-3 million.

    Managing Partner Joy Vance of The Agency Bozeman and Big Sky notes that the city's downtown area has been "record-setting," while luxury homes in Bozeman have been one of the strongest markets. However, the condo market has been lagging, and anything below jumbo rates has taken a back seat. First-time home buyers face limitations due to high median sales prices and interest rates.

    Bozeman's median home price is $761,000, with values rising over 59% in the past five years. The city's proximity to Big Sky, where many wealthy individuals own homes, has contributed to its growth. Vance attributes Bozeman's appeal to its thriving small community, great restaurants, and entertainment options, making it a sought-after destination for people seeking an active lifestyle.

    The area offers abundant outdoor recreational activities, safety, expanding airport, schools, and healthcare, drawing people to the city. However, affordable housing remains a challenge, with Vance acknowledging that finding solutions is essential. If interest rates decrease in 2025, she predicts a busy year for Bozeman's real estate market, but not necessarily a surge in prices.