Inflation & Real Estate
I was speaking to a colleague the other day and he stated, “I feel bad for anyone who doesn’t own real estate in Montana now.” While this was said aniqudotelaly, I would concur that if you own MT RE, you are a lucky duck. There are many factors that carry this statement. Let’s explore a couple.
Inflation makes real estate more valuable, this is general & applicable to all markets. As the cost of goods increases, of course housing is included. If you have cash in the bank every day it is worth less (especially in times of high inflation), but with property ownership it has been growing in value everyday. Stable growth happens in housing throughout times of inflation.¹ One would think we are in a period of hyperinflation based on the increase in housing prices in Montana, in Helena we are seeing the median home up 26% from a year ago! This has little to do with inflation, but rather that the demand for Montana real estate is higher than ever!
Montana is a hot & attainable destination! The old adage “Montana’s full” doesn’t seem to deter folks from snatching their piece of the “last best place.” For a long time American’s dreamed of vacationing & retiring in Montana, but with remote-work options & an expansion of Montana’s economy that dream is becoming a reality & lifestyle. People are making the move now! Montana’s population grew by 1.6% during the pandemic.² You can’t blame new residents for wanting to live here, but let’s see what happens when we get a “real” winter.
Thoughts? Email us at josh@bigfootmg.com
