Montana Senate Race Heats Up Amid Booming Housing Market
The housing market in Montana is booming, with new developments popping up in various towns and cities across the state. In Missoula, a subdivision near the northern edge of town has seen the construction of condos and duplexes over the past three years. This growth is part of a larger effort, including new zoning laws, to provide affordable housing to Montanans who have been priced out of the market. DJ Smith, president of the Montana Association of Realtors, noted that it has become increasingly difficult for Montanans to find homes that meet their needs and are affordable.
Out-of-state residents relocating to Montana have contributed to the soaring demand for housing, while a shortage of labor has kept supply limited. This has led to an increase in the construction of condos and duplexes, making housing a hot-button issue in the upcoming Senate race. Democratic Senator Jon Tester is facing a tough re-election battle, as he seeks to win a state that former President Trump won by a significant margin in 2020.
Tester has made affordable housing a cornerstone of his campaign, focusing on how to help Montanans who have been priced out of the market due to the influx of new residents. Tim Sheehy, the Republican nominee and a former Navy SEAL, has blamed high housing costs on inflation and policies backed by President Joe Biden and supported by Tester. The race between Tester and Sheehy is heating up, with recent polls showing a close race within the margin of error.
Housing affordability is a top concern not just in Montana, but across the country. According to the National Association of Realtors, Montana is the least affordable state for home buyers, with housing prices increasing by 66% in the past four years. The median home price in Missoula is $568,377, which is high for the average Montanan but attractive to those looking to escape higher-cost states for Montana’s natural beauty.
Subheadings:
The Impact of Influx of Out-of-State Residents
Challenges in the Construction Industry
Proposals to Address the Housing Crisis
The Impact of Influx of Out-of-State Residents
The influx of out-of-state residents moving to Montana has had a significant impact on the housing market. Many people from states like Colorado and California, where housing prices are much higher, have been able to sell their homes for a substantial amount and purchase homes in Montana with cash. This has led to a record number of homes being bought with cash in recent years, driving up housing prices and making it difficult for long-time residents to afford homes in their communities.
According to Smith, the president of the Montana Association of Realtors, the demand for housing in Montana has increased due to the influx of wealthy individuals looking to buy property in the state. This has put pressure on housing prices and made it challenging for average Montanans to compete in the market. The median income in Montana is $67,631, which is lower than the median home price in Missoula, making it difficult for many residents to afford homes in the area.
Challenges in the Construction Industry
The construction industry in Montana is facing challenges due to a shortage of labor, particularly in subcontractor roles such as plumbers and electricians. Andrew Weigand, a builder in Missoula, noted that there is a limited pool of subcontractors available, leading to higher costs and less competition in the market. As a result, housing prices have continued to rise, making it even more difficult for residents to afford homes in the state.
Weigand expressed concern about the aging workforce in the construction industry, as many tradespeople are nearing retirement and there are not enough young professionals entering the field to replace them. This shortage of skilled labor is contributing to the rising costs of construction and ultimately driving up housing prices. Without a sufficient number of subcontractors, builders are unable to meet the demand for new homes in Montana.
Proposals to Address the Housing Crisis
Senator Tester has proposed several initiatives to address the housing crisis in Montana and help residents who are struggling to afford homes. These proposals include grants to expand housing options and provide assistance with home repairs. Tester has also suggested a tax credit to incentivize mobile home park owners to sell their properties to coalitions of Montana residents rather than developers who would build more expensive homes on the land.
On the other hand, Tim Sheehy has focused on expanding trade programs in the state to address the shortage of contractors needed to build homes. During a recent debate, Sheehy highlighted the importance of training more individuals in the construction industry to meet the growing demand for housing in Montana. By investing in trade programs and providing opportunities for young professionals to enter the field, Sheehy believes that the state can alleviate some of the pressure on the housing market.
In conclusion, the Montana Senate race is heating up amid a booming housing market that has created challenges for residents and builders alike. With housing prices on the rise and a shortage of skilled labor in the construction industry, both candidates are proposing solutions to address the housing crisis and make homeownership more accessible to Montanans. As the race intensifies, the outcome will have a significant impact on the future of housing in the state and the affordability of homes for residents.
