Rising home prices spur increased rental rates in Bozeman

Posted at 7:57 AM, Jul 20, 2018
and last updated 2018-07-20 09:57:04-04

BOZEMAN – There are more renters in the U.S. today than there have been since 1965, according to the Census Bureau. As the rental and housing rates continue to rise, finding a place for a reasonable rate can be tricky.

"Obviously anybody who has seen the Bozeman market knows the real estate market is on fire as well as the rental market. They both are extremely competitive now, and a lack of inventory is making it difficult,” said Bozeman Real Estate Group Realtor Keegan Latta.

According to Redfin, a national real estate broker, the price of a single-family home has increased by more than 30% in the last five years with rentals increasing by 20%. Latta said with the high demand for rentals and homes in Bozeman this number will continue to spike.  

"More people come in, those home prices are gonna go up and we will see that into the unforeseeable future," said Latta.

Houses, apartments, duplexes, and townhouses in town are being priced higher than ever before. Property Manager for Platinum Property Management, Rachel Cory, has worked in the rental market for a little more than three years. She said since the start of her job she has seen rental units rise at about $300-400.

"Since we are at a 0% vacancy rate right now and Bozeman is still one of the most popular places to move, until construction can catch up, it is going to continue to be crazy. Right now kind of a rule of thumb in Bozeman is $600-800 a bedroom. The less bedrooms you are looking at the more expensive it is going to be per bedroom," said Cory.

As Bozeman continues to creep towards a population of 50,000 the price of rentals will continue to increase as well.