Bozeman Montana Real Estate Information Archive


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Bozeman's Future- What Lies Ahead

by Hart Real Estate Solutions

Earlier this year, we learned that Bozeman had hired the city’s first affordable housing director in an effort to generate solutions to help reduce the gap between the cost of housing and affordability. In a recent city report, 22% of homeowners were found to be spending more than 35% of their income on their mortgage payment, while 44% of the city’s renters are spending more than 35% of their income on a monthly rent payment.

With current affordability statistics this high, Bozeman’s median single-family home price having reached $398,000 last year, and the current population estimated to be above 47,000 (and growing), it’s more important than ever for this new director to begin mandating affordable housing across all types of homes.

Another New Position

Another top priority for the city, in addition to working on the creation of more affordable housing options, is the construction of a new public safety complex. Whether the city will go alone to build the new center or partner with Gallatin County is to be determined, but either way, the plan will come with a big bill that will need plenty of support before citizens vote on it.

When it comes to large city plans that have an impact on Bozeman’s future (such as affordable housing options or the new safety complex), there’s a bit of a disconnect with city hall’s goals reaching residents. In effort to better communicate the city’s plans to citizens, Bozeman will be hiring its first communications coordinator.

This new role will serve as City Hall’s voice in order to manage which information goes to the public, and how. Largely intended to be an outreach position, the person who fills the job will keep citizens informed via social media and traditional press releases and will likely step outside of the traditional 8-to-5 schedule. Although the search to fill the position is national, the job could be filled as early as April if the city finds the right applicant.

Looking Forward

When Bozeman reaches 50,000 people (and so far, it’s on track to do so very soon), a Metropolitan Planning Organization (MPO) must be established, per the federal law. This organization will help with transportation planning and give citizens more control over what happens to the area. At this time, Bozeman will also receive federal money for future expansion projects. If the city and the county can work harmoniously together, some officials believe that an MPO would be beneficial as Bozeman continues to grow, while others are skeptical because of uncertainties with a limited pot of money and strained relationships between Bozeman and Gallatin County.

As the future unfolds and new city positions are created to help determine the direction in which Bozeman will develop, it will be interesting to see how some of the city’s current issues are solved in terms of both population growth and more affordable housing options.

More Affordable Housing Coming to Bozeman

by Hart Real Estate Solutions

Bozeman is growing exponentially— this is no surprise. What might be surprising though is how quickly it is predicted to grow by 2045. Between 2000 and 2016, Gallatin County added roughly 2,200 new residents each year. From 2017 to 2045, Gallatin County is expected to gain nearly 55,000 new residents, with 50% of these residents expected to live in the City of Bozeman.

It’s been a seller’s market in Bozeman for some time now, with both available inventory and housing affordability increasingly becoming more of an issue in our market. The greater Bozeman area has experienced an average 8.3% increase in median sales price over the last 5 years. Currently, the median home price in Bozeman is $398,000— meaning that a household needs to earn at least $68,400 per year, or $32/hour for one earner, in order for this home to be considered affordable at the 30% of income affordability standard. While the median household income in our area is $68,000 (indicating that home prices are in line with incomes), this statistic doesn’t account for the quality of the housing that is available at this price.

However, with the city’s prices on track to surpass wages, and so many people moving to the area over the next few decades, the need for more affordable housing options is critical. The latest affordable housing project is being led by HRDC, and will be constructed on a parcel of land that partially wraps around Baxter Square Park (just under 3 acres), a quarter mile northwest of the North 27th Ave and Baxter Lane intersection. The 24 townhomes will be available to families who earn between $30,000 and $40,000/year, and those who are interested must financially qualify and complete HRDC education and home buying courses.

The Location Dilemma

Years ago, previous developers created a human-made pond adjacent to the future location of the new affordable townhomes. Their project was stalled in 2008 after the recession and was never fully completed. Over the past decade Cattail Creek merged with the pond, creating an expanse of wetlands in the area, resulting in a difficult location to build on.

Originally, HRDC had plans for a few single homes— they’ve since asked city commissioners to approve constructing the new affordable units closer to the pond, in addition to reducing both the size of the lots and the amount of space between homes and the streets. HRDC also proposed the creation of dog stations, individual lot fencing, and enhanced building signs for each of the units. City commissioners approved the project on February 26th, as it falls in line with their preference for constructing more homes on less space as Bozeman continually adds several thousand new residents every year. 

Future Location for Affordable Townhomes (Approximate)


Next Steps

If Bozeman continues to grow as quickly as it is predicted to (an additional 27,500 residents by 2045), then projection estimates will demand 12,700 new housing units over the 2017 through 2045 time period. In order to construct all of these units, developers need between 1,800 and 3,100 acres— the current supply in city limits for residential development is 1,300 acres.

While some of these new 12,700 units will be single-family homes, others will be multi-family buildings, townhomes and duplexes. Some will be affordable housing opportunities, and others won’t be.  At any rate, Bozeman IS growing, and quickly. Whether growth means that we expand up, or expand out, expansion of some sort and the addition of more affordable housing options will be necessary over the next few decades as our city prepares for massive growth.

Another Mid-Rise Building Proposed for Downtown Bozeman

by Hart Real Estate Solutions

Last fall, construction on the controversial Black-Olive building was approved by Bozeman City Commissioners after more than a year of discussions, meetings, and revised design plans. Many Bozeman residents (and in particular, those who live downtown) were and still are concerned that the building will ruin Bozeman’s small-town charm, while others believe that the solution for our rapidly growing community is to “build up” instead of “build out”.

Andy Holloran, the same developer behind Black-Olive, has recently proposed plans for a five-story, 50-unit building on the corner of Lamme and Willson, across the street from the old Deaconess Hospital building. The new mid-rise (currently being called the One 11 Lofts) is expected to include 4 studios, 24 one-bedroom, 11 two-bedrooms, and 11 three-bedroom units. Based on its proposed location, the building is zoned in the city’s Central Business District— which means that the ground floor may or may not include commercial space for businesses.

Will Parking Be an Issue?

One of the major reasons why Black-Olive was originally denied was due to a lack of sufficient parking being included in the first round of design plans— only 37 on-site parking spaces for 56 apartments. Neighbors in the vicinity to Black-Olive were concerned about residents filling up already crowded street parking in front of their homes.

The One 11 building plans currently include 53 parking spaces for the 50 units, which is within the city’s requirements of a single space per unit. Most of these parking spaces will be located within an enclosed garage on the building’s first floor, with 6 spaces on the street outside. So far, the amount of parking provided in Holloran’s first draft of plans is significantly larger than that of Black-Olive.

Next Steps

Though construction on Black-Olive will begin in May, the One 11 plan is under review by the city. Planning documents describe the building as featuring corrugated metal, wood paneling, a flat roof and light-colored brickwork, ultimately giving it a “timeless and contextual quality”. Will this mid-rise threaten Bozeman’s small-town charm and obstruct mountain views? Or will it help maintain downtown’s sense of historic value while still offering a solution to limited housing in the area? For now, all we can do is wait to see how the city responds to the proposal.


Proposed Location for One 11 Building

By now, most Bozemanites are aware that the city will soon break ground on a second high school on the west side of town. However, Bozeman High School isn’t the only school that will soon be full— all 8 of the existing elementary schools are expected to reach capacity by either 2020 or 2021. With Bozeman’s rapid growth rate of about 4.2%, it comes as no surprise that schools are quickly reaching capacity. Based on how fast the Bozeman school enrollment has been growing every year, the School Board says that the district will need two new elementary schools in the next 10 years.

The school district currently owns several parcels of land—however, none of them are ideal for elementary schools because they are in areas of town that are not growing the fastest, and therefore do not need additional schools. Ideal pieces of land that Bozeman school officials are interested in purchasing include the parcels near the post office on Baxter Lane, and a parcel south of Huffine Lane near Ressler Motors. In order to raise money to purchase these parcels of land, school officials are hoping to sell the land they currently own— the Emerson lawn at Babcock and 4th Avenue. With the deadline to put a land purchase for schools on the May 8th ballot coming up on February 27th, school officials are eager to sell the land their currently own as soon as possible. So far there are three Emerson lawn bidders, though none of the three bids have met the current appraisal amount for the lawn ($2.275 million).

Desired Locations

Both parcels of land located near the post office are long and thin— not ideal for a school. To remedy this, school officials want to buy both parcels and combine them into one, square-shaped, 10-acre parcel. Luckily the owners of both parcels inherited the land, and are more than happy to sell the land, since it will become home to a school, rather than another condo complex. The total cost of both parcels is estimated to be around $1.6 million. Developer Gene Cook owns the 12-acre parcel of land just southwest of Ressler Motors off of Huffine Lane— school officials have stated that although terms of a deal haven’t been negotiated just yet, they are hopeful that the developers will be willing to either work out a land trade or donate several acres to the school district.

Bozeman school officials will ask voters in May to approve either one or both locations for the future elementary schools and are hoping to have the money from the Emerson lawn sale in hand by that time so that school officials will not have to ask voters for money or tax hikes. 


Current Elementary Schools (Blue) and Probably Future Locations (Red)

A New Solution: Bozeman’s First Affordable Housing Director

by Hart Real Estate Solutions

Bozeman’s Affordable Housing Action Plan pinpointed several major strategies to implement over a 5-year timespan (2012-2016). Its purpose was to work on providing more affordable housing units and down payment assistance for both renters and homeowners alike. While this plan outlined several goals that were partially met by the end of 2016, affordable housing in Bozeman is still a significant issue that needs continued attention and work in the future.

In 2010, 28% of homeowners and 49% of renters in Bozeman were living in unaffordable housing, when using the widely accepted benchmark amount of <33% of total income for homeowners and <30% of total income for renters. It’s important to note, however, that there is no universal home price or rent benchmark that defines “affordable”— this varies by income level and should be based on ability to pay.

 By 2015, at least 4,000 of the city’s 8,400 renters were paying rents at or above the 30% threshold, while a third of homeowners were paying at least that much, if not more.

Is Something Being Done to Help?

With these statistics not having improved much in recent years, the City of Bozeman has decided to hire its first affordable housing director. The person who will fill this new position (expected to begin by the end of January) will be responsible for generating solutions to help reduce the gap between the cost of housing and how much many Bozeman residents can afford to pay.

Six months ago, Bozeman planning adopted a new rule that mandated that builders and developers would have to either sell 3 in 10 homes in new developments at $260,000 or less, OR 1 in 10 homes at $215,000 or less, subject to change based number of bedrooms per unit. The city has been trying to keep up with this rule, which is where the need for an affordable housing director stems from.

Additionally, the new director will help to track housing projects from the time a building permit is issued to the time that someone closes on their home, in order to ensure that this 6-month-old rule is followed from start to end.

As 2018 unfolds, it will be interesting to see how this new position begins to change the affordable housing market and what impacts it will have on many of Bozeman’s renters and homeowners who are currently above the income threshold for housing. 

5 Tips to Help Your Home Sell in the Winter

by Hart Real Estate Solutions

True or false- the best time to sell your home is typically during the spring and summer months— true. However, this doesn’t mean that you can’t sell during the winter and still get a great price.

If you’re considering selling this winter, here are several tips to help you prepare your home:

  • Snow removal: In order to set foot inside your home, buyers have to get there first. Shovel the snow and use salt to melt any ice patches, and ensure that the path to the lockbox (if you’re using one) is clear for agents.
  • Curb appeal still matters: Even though people won’t be spending much time outside the home for several months yet, it’s still important to maintain the exterior— clean out the gutters and keep trees and shrubs trimmed to help buyers envision what your home will look like during warmer months.
  • Set the scene: Create a cozy feeling during showings— add blankets to the couch, light some candles and use tasteful Christmas décor if selling during the holidays. If you have a fireplace, use it to showcase both its ability to warm up a room and its added aesthetic to your home.
  • Light it up: Winter has a tendency to remove a lot of natural light. To combat this, open window treatments during the day and utilize lightbulbs and candles to create as much lighting as possible.
  • Keep on eye on the weather: Be prepared for delays due to bad weather— showings, inspections and even document transmissions can be delayed if a winter storm rolls in. 


Sometimes homes sell for more during the snowy months because there is less inventory to choose from, although the amount of time to sell is dependent on weather, which in turn is dependent on the number of showings you’ll get. Even though there are fewer buyers during the winter months, the buyers that ARE looking tend to be more motivated. While there are benefits to selling during the spring and summer, there are also benefits to selling during the winter as well. 

Related Articles:

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Home Prices and Growth: What’s Going On?

by Hart Real Estate Solutions

What Does Growth Look Like Around the U.S.?

It comes as no surprise to many of us that owning a home can be an expensive venture. Factor in HOA fees, interior appliances/materials, miscellaneous maintenance costs and everything in between, and it’s easy to see why being a homeowner can appear to be daunting to some.

Although home prices grew 5.6% last year, this is only determined when comparing dollars to dollars. If this statistic is adjusted for inflation, this increase is still actually 15% below the high that occurred in 2006. Of the country’s 100 largest metro areas, only 41 grew to new peaks, even though 97 of these 100 metro areas did see overall home price growth. Overall, housing markets on both the West and East coasts have experienced inflation-adjusted home price increases of more than 40% in the last 16 years, while markets in the Midwest and South have generally experienced decreases.

However, growth has not been the same across all income levels. After Harvard researchers collected data for more than 9,000 ZIP codes across the country, most home prices in all income brackets were LOWER than their pre-2006 peaks. Here’s the breakdown:

  • Low-income areas: 13.7% lower
  • Moderate-income areas: 6.5% lower
  • High-income areas: 3.3% lower

Because of the post-recession change in home prices, many homeowners were able to emerge from underwater, a term indicating that the value of a home is below or under its mortgage amount. In 2011, the number of underwater homeowners topped out at 12.1 million; by the end of 2016, that number was down to 3.2 million.



What About Growth in and Around Bozeman?

Bozeman remains one of the fastest growing small towns in the country, with a population growth rate of 4.6%. Home prices across the state currently exceed pre-2006 levels by 10%.

When comparing median sales prices between Bozeman, Belgrade and other Bozeman areas, home prices are still steadily on the rise in all 3 areas.


Median Sales Prices (2011-2017)

This data was pulled Big Sky Country MLS for 2017. While we attempt to provide reliable, useful information, we cannot guarantee that the information is accurate, current or suitable for any particular purpose. Estimates are subject to change without notice.


Although median sales prices are continually rising, the good news is that the median sale price is often lower than the median original asking price: 

This data was pulled Big Sky Country MLS for 2017. While we attempt to provide reliable, useful information, we cannot guarantee that the information is accurate, current or suitable for any particular purpose. Estimates are subject to change without notice.


As for the country as a whole, Freddie Mac predicts an overall home price increase of 4.9% in 2018. While that may seem like quite a jump, this prediction is still lower than the 6.3% growth we’ve seen so far this year.  Much like the prediction for 2017, 2018’s prediction also suggests continued economic growth of around 2%, steady job gains and relatively low mortgage rates. 

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Long-Debated Black-Olive Project Gets Approved By City Commissioners

by Hart Real Estate Solutions

In September of 2016, the Black-Olive project was first presented to Bozeman City Commissioners as a 5-story building that would feature 56 apartments, as well as commercial business space on the ground floor and 37 on-site parking spaces. Many neighboring residents spoke out at both public meetings and on Facebook’s “Save Bozeman” page to express their concerns that the contemporary building would ruin Bozeman’s small-town charm and negatively impact street parking.

On April 11th of this year, this proposal was denied with a 4-1 vote, although it was stated that developer Andy Holloran intended to modify the design and resubmit his proposal for later review. Fast forward to last week— the Black-Olive development was APPROVED after more than a year of discussions, meetings and revised design plans, ironically with a 4-1 vote. The project will include demolition of the two-story building currently located at 202 S. Black Ave.

What Else?

The new design has been modified to feature 66 bedrooms within 47 apartments, while providing 40 parking spaces for those residents.  Although some commissioners and citizens were still against the project, stating that the building was too big and that parking constraints were already an issue, others disagreed. Commissioners I-Ho Pomeroy and Jeff Krauss support the idea of creating more housing opportunities downtown, which would include growth upward instead of outward.

What Now?

Although the project has been approved, Holloran will be required to make minor changes to the building’s top floor to scale back its elevation. After finishing the design to accommodate this amendment and obtaining both a building and demolition permit, Holloran expects to break ground sometime this spring. 

Future Location of Black-Olive Project

New Short-Term Rental Rules Adopted in Bozeman City Limits

by Hart Real Estate Solutions

Bozeman City Commissioners adopted an ordinance on September 11th that includes new rules and regulations for the estimated 500-550 short-term rentals in Bozeman through platforms including Airbnb, VRBO and Homeaway. A short-term rental (STR) is defined as the rental of rooms or dwellings to paying guests anywhere from 1 to 29 days.

What’s the Gist?

This ordinance was adopted with a 3-2 vote by city commissioners—commissioners also passed the new fees that homeowners will pay in order to continue using their property as an STR. There is now an annual $250 registration fee, in addition to a one-time fire inspection fee of $225. In addition, some homeowners may find themselves paying an administrative conditional use permit of $1,508. Commissioner Chris Mehl states that there may be adjustments to these fees in the future, as the city commissioners will have the chance to look at and assess the fees every year.

What Else?

The new fees will be used to balance the program’s cost— they will cover resources needed to process applications, respond to complaints, monitor regulations and inspect rentals. Many older homes that are being used as short-term rentals do not have the same fire-safety features that newer homes have.

While some are concerned that the new mandatory fees will have a negative impact on homeowners who use their properties as short-term rentals in order to generate additional income, Mayor Carson Taylor supports the fee increases because they are important to overall public safety.

Additionally, the new ordinance will forbid STRs that aren’t owner-occupied at any time within Bozeman’s residential districts. In this case, owner-occupied indicates that the owner occupies the dwelling for more than 50% of the calendar year. People who have been operating in these areas prior to January 1st will have the option to be grandfathered in.

When Does This All Start?

These rules will go into effect starting December 1st, and once the ordinance is passed (30 days from September 11th), homeowners will be given a 60-day grace period to meet compliance.

What makes Bozeman both unique and a desirable place to live all comes down to quality—quality of the community, quality of housing and ultimately the quality of the people who live and work here. The intended purpose of this ordinance, while seen as frustrating and expensive to some homeowners, may help contribute to the quality of life that is so valued here in Bozeman, and continue to make living and visiting here so enjoyable.

6 Things To Do Before You Take That Vacation

by Hart Real Estate Solutions

Summer is coming to a close, but that doesn’t mean that vacation time is over. Did you know that August is the second most popular month of the year to travel? With 36% of respondents vacationing this month, it’s a good idea to prepare your home to be unoccupied for days or weeks at a time.

There are many precautions you can take to ensure your home stays safe while you’re away. Here are a few tips to help reduce the risks:

  • Only 17% of homes in America have a home security system, and homes without one are three times as likely to be burglarized. While these systems are not cheap, they are a wise investment and can save you a headache and a lot of money later down the road.​​
  • Putting a hold on your mail and newspaper for the duration of your time away will make it look as though you are home, or at the very least, that someone is stopping by your house regularly to collect the mail.​​
  • This may seem like an obvious one, but is easy to overlook while packing and running last minute errands before you leave town. Lock all windows and doors and once you’ve locked them, double-check just to be sure.​​
  • We’ve all been told at one point or another to put our lights on a timer while on vacation, but smart bulbs like these can be programmed through your smartphone and controlled from wherever you are. It may also be a good idea to switch up the times that you activate the lights every day to further create the illusion that someone is home.​​
  • It may seem silly to water the plants, clean up the yard and mow the grass before leaving on vacation, but think about it– a home with a tidy yard implies that the home is occupied, and is more likely to deter a burglar.
  • You never know when a power surge will happen, so why take the risk while you’re away? Disconnect any electronics that don’t need to stay plugged in, such as the TV, your laptop, a hair dryer, etc.

These are just a few ideas to get you thinking about security measures to take the next time you leave for vacation and leave your empty house behind– after all, a vacation is intended to be relaxing, so don’t stress out!

Related articles: 

5 Areas to Focus On: How to Increase Your Home's Resale Value

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Top Home Improvement Projects That Sell

Displaying blog entries 1-10 of 355