Montana is one of only three U.S. states that does not claim one of the nation’s Top 150 largest apartment markets based on existing unit count. (The other two are Vermont and Wyoming.) Still, developers and investors have shown recent interest in Montana apartment markets. Montana’s largest existing unit count belongs to Missoula with roughly 9,700 existing apartment units. And another 828 units under construction in Missoula will grow inventory 8.5% in the near term, according to RealPage Market Analytics. And Missoula isn’t the only Montana market with a hefty construction pipeline based on inventory ratio. The nearly 1,300 units underway in Bozeman will grow that market’s total apartment inventory by 16.3%. In Kalispell, 418 units underway will grow that small market by a whopping 11.3%. The nearly 800 units underway in Billings will grow that market by 10.2%. And the 458 units under construction in Great Falls will grow total apartment inventory by 8.6%. Only Helena has a completely empty construction pipeline as no apartment units are currently underway in that small market. Across Montana, apartment occupancy maintains relative resilience, despite the heavy construction pipelines.
Moving forward, demographic tailwinds should continue to support strong multifamily demand in Montana. Though near-term performance may face some challenges due to the relatively large number of units delivering, expect Montana to remain a state with growing multifamily focus throughout the 2020s decade.
