2019 was a busy year for Missoula’s apartment market, after a slow 2018. Job growth and the resulting population growth has driven demand for housing in Missoula. Single family housing has not kept pace with demand, pushing more people into apartments. We anticipate that the market will be strong, with rent growth likely in the next 12 to 24 months. That said, investors should keep tabs on three key trends:
Student Housing Supply
Missoula hosts a large population, many of whom rent market rate housing. The completion of on campus student housing will impact this population of renters if they choose to move back to campus.
Population & Job Growth in Missoula
2019 was a strong year for employment growth in the Missoula market. Job growth and population growth has outpaced housing growth for the past few years. This is creating pressure on Missoula’s housing supply.
New construction projects facing headwinds
Building housing in the Missoula market is a challenge, with rising land costs and other challenges. More and more investors are seeking to acquire existing projects vs building new.
- Deliveries of apartments have declined
- We have seen an increase in sales volume of multifamily projects
- Vacancy and rents have stabilized, with fewer landlord concessions in the market
- 3 bedrooms have the lowest vacancy
- Job growth is expected to stay above national average