The COVID-19 pandemic sparked a surge in home prices across the Mountain West region, driven largely by a shift in buyer preferences toward properties with ample outdoor space. This trend isn’t confined to major cities such as Salt Lake City and Boise; small towns across the region are also experiencing substantial increases in property values.
Bozeman, Montana, is a prime example of a community in the region experiencing exponential price growth. According to a March article from Robb Report, the median sales price of a single-family home in Bozeman reached $1.16 million in January, marking a nearly 40% increase from the year prior. This is an unprecedented surge for a city with a population of less than 50,000. The influx of affluent buyers, empowered by remote work arrangements, has fundamentally shifted the local market dynamics.
The housing boom poses a unique dilemma for many of the Mountain West’s small towns. High-end buyers are purchasing real estate at a rapid pace, exceeding the capacity for development in these small communities. This causes a pricing-out effect that impacts long-time residents, who find themselves unable to afford the places they’ve called home for years.
On March 3rd, 2024, NBC News reported on the challenge faced by the City of Steamboat Springs in recruiting a head of human resources. The city struggled to find candidates who could afford to live there on the offered salary of $167,000. In mountainous locales renowned as premier resort destinations, employment opportunities often lie within the tourism and service industries. Many of these local workers find themselves unable to afford housing in the communities where they work.
Although wages in the Mountain West have seen growth in recent years—rising by 10% over the previous four years, as reported by KUNC in November 2023—housing prices and the cost of living have climbed far beyond that in many parts of the region. Consequently, residents find themselves in a worse situation than before.
