Buy Multifamily Housing in Montana | Missoula | Bozeman | Helena | Great Falls
We’ve been tracking nosediving apartment vacancies since late 2020. Rates remain extremely low in the first quarter of 2021, coming in at 1.24%. While that’s up slightly over last year, it’s still far from a healthy market where we would expect 4- 5 percent apartment vacancy.
Coming out of 2020, new unit deliveries have not kept pace with growing demand. With limited new supply and no indications that demand will drop, rents will likely continue to rise. What’s causing this lack of supply? A few critical factors include construction delays due to material shortages, rising construction costs, a lengthy permitting and approval process, and a lack of construction-ready sites. On the other side, what’s causing rising demand?
As new residents move to Missoula, the limited amount of for-sale housing options are pushing typical home buyers into rentals. For some families, COVID has disrupted plans for moving. Across the country, those who did move last most frequently left larger metros for smaller cities like Missoula, Bozeman, or Bend, Oregon.
The average asking rent in Missoula is $1,076, an increase from this time last year. The average rent per square foot is now $1.51. According to the MultiHousing News, the U.S. saw -.8% rent growth year over year. Nationally, the average rent was $1,462 a month at the end of 2020. If you’re ready to buy a multifamily building in Missoula, follow Sterling CRE to stay up to date on local markets.
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For more info to buy multifamily property in Missoula or across Montana, contact Nick Chaussee.