Montana’s Housing Crisis Heats Up Tight Senate Race
Montana’s housing market is boiling over, with an influx of out-of-state residents driving up prices and pushing many native Montanans out of their communities. This affordability crisis has become a central issue in the closely watched Senate race between incumbent Democrat Jon Tester and Republican challenger Tim Sheehy, placing the future of Montana housing and the balance of power in the Senate at stake.
Key Takeaways:
- Montana’s housing market is the least affordable in the nation, with prices rising 66% in the past four years, outpacing the national average of 50%.
- The influx of wealthy out-of-state buyers, often purchasing homes in cash, is pushing prices beyond the reach of many Montanans.
- A severe shortage of skilled labor, particularly in construction trades, is exacerbating the affordability problem.
- The housing crisis has become a central issue in the tight Senate race between incumbent Democrat Jon Tester and Republican challenger Tim Sheehy.
- Tester has proposed several solutions, including grants for housing expansion and home repairs, and a tax credit to encourage mobile home park ownership by local residents.
- Sheehy blames inflation for high housing costs and proposes expanding trade programs to address the labor shortage.
Out-of-State Influx Fuels Affordability Crisis
The influx of new residents into Montana has created a surge in demand for housing, but the supply has struggled to keep up, creating a perfect storm of affordability problems. “For Montanans, it’s been harder and harder to find a home that meets their needs and is affordable,” said DJ Smith, president of the Montana Association of Realtors. This trend is particularly pronounced in Missoula, a vibrant city nestled in the foothills of the Rocky Mountains, where the median home price has soared to $568,377 – a significant barrier for many Montanans whose median household income is $67,631.
This affordability problem is not just a Missoula phenomenon. Montana is now ranked the least affordable state in the nation, with home prices rising at an alarming rate. In the past four years, home prices in Montana have skyrocketed by 66%, significantly exceeding the national average of 50%.
Cash Buyers and Skilled Labor Shortages Add to the Problem
The issue is further compounded by the fact that many new residents are able to purchase homes in cash. This, coupled with the rising cost of materials due to inflation, puts those relying on financing at a considerable disadvantage.
“People in Colorado, California, they would sell their homes for over a million dollars and have a lot of equity to purchase here in Montana,” said Smith. “That’s led to a record number of 30% of our homes last year being bought with cash.”
The shortage of skilled labor in construction trades further fuels the fire. Builder Andrew Weigand, owner of Butler Creek Development, said the lack of available subcontractors, particularly plumbers and electricians, is driving up costs. “If you have a pool of three or four subcontractors to use, and not 30 or 40, you’re going to have not as competitive a market as you do in other areas of the nation,” he said.
A Hot-Button Issue in the Senate Race
The housing affordability crisis has become a central issue in the tightly contested Senate race between incumbent Democrat Jon Tester and Republican challenger Tim Sheehy – a race that could decide the balance of power in the Senate.
Tester, who is seeking re-election in a state that Trump won by 16 points in 2020, has made affordable housing a cornerstone of his campaign. He argues that out-of-state buyers are driving up prices and displacing longtime Montanans. “We’re seeing a lot of folks come into the state, rich folks, who want to try to buy our state, to change it into something it’s not,” Tester said at a recent debate.
Sheehy, a former Navy SEAL who founded an aerial firefighting company in Montana, blames the housing crisis on inflation and policies enacted by the Biden administration, on which Tester voted. “Our biggest challenge growing our company was convincing folks to come to Montana and absorb these crazy housing costs,” Sheehy said. “They’re a direct result of the policies coming out of the Biden administration.”
Proposed Solutions and the Battle for Montana’s Future
Both candidates have put forward proposals that address the housing crisis, though their approaches differ significantly.
Tester has proposed several solutions, including:
- Grants for housing expansion and home repairs: Tester has introduced a bill to provide financial assistance for expanding affordable housing options and aid for home repairs.
- Tax credit for mobile home park ownership by local residents: Tester has also proposed a tax credit to encourage the sale of mobile home parks to Montana residents, rather than developers who could redevelop the land for more expensive housing.
Sheehy, while blaming the crisis on inflation, has proposed expanding trade programs in the state to address the construction labor shortage:
- Expand Trade Programs: Sheehy believes that equipping Montana’s workforce with the skills needed to address the construction labor gap will ultimately alleviate the affordability problem.
The housing crisis has become a defining issue in Montana’s Senate race, with voters increasingly concerned about their ability to live and thrive in their own state. As the race intensifies, the debate over housing solutions will continue to shape the public discourse, ultimately influencing the outcome of this critical election.
