Can the Middle Class Afford a Home in Montana? A 2025 Reality Check

For middle-class families, buying a home in Montana is still achievable, but it requires strategic planning and a willingness to explore markets beyond the state's most popular cities. While the median household income in Montana is $70,804, the state's median home price has reached $613,375, creating a significant affordability gap. However, by targeting more affordable regions like Billings and Great Falls, where median prices align with a typical middle-class budget of approximately $353,000, homeownership remains a realistic goal, especially for those seeking a lifestyle rich in outdoor recreation and space.

What is the Reality of Montana's Housing Market for the Middle Class?

The core challenge is the disparity between median income and median home price. Based on a SmartAsset analysis of 2023 U.S. Census Bureau data, the median household income for the middle class in Montana is $70,804. With a stable income and good credit, a household earning this amount could typically qualify for a mortgage on a home priced around $353,000. This calculation assumes standard lending criteria, including a debt-to-income (DTI) ratio—a key metric lenders use to assess your ability to manage monthly payments—of 36% or lower. However, the statewide median home price sits at $613,375, which is approximately 74% higher than what the median middle-class budget can support. This gap is partly driven by demand for second homes and the popularity of the "Yellowstone" lifestyle, which has intensified competition in specific markets.

Where Can Middle-Class Buyers Find Affordable Homes in Montana?

The solution lies in geographic flexibility. Highly sought-after destinations like Bozeman, Helena, and Missoula command premium prices, but the state offers considerable value in other areas. Focusing on cities and rural communities where prices are more aligned with middle-class incomes is the most viable path to homeownership.

• Billings: As Montana's largest city, Billings offers a blend of urban amenities and natural beauty. The median sale price—the midpoint of all home sales in a given period, indicating a typical market value—is around $369,900. This falls within a feasible range for many middle-class buyers and provides access to the Yellowstone River and surrounding landscapes.
• Great Falls: Recognized as one of the best places to live in Montana for 2025, Great Falls presents a compelling opportunity. The median house price is approximately $369,900, making it an affordable alternative. The city boasts over 60 parks and 52 miles of the River's Edge Trail along the Missouri River, catering to an active lifestyle.
• Rural Montana: For buyers prioritizing space and simplicity, rural areas offer the most value. Home prices are generally lower, and buyers can often acquire more land. These quieter communities appeal to those looking to escape urban sprawl without a heavy financial burden.

What Lifestyle Benefits Does Montana Offer?

Beyond affordability, Montana is renowned for its quality of life. The state features breathtaking landscapes, from rugged mountains to open prairies and iconic national parks like Glacier and Yellowstone. This environment is a haven for outdoor enthusiasts, offering year-round activities such as hiking, skiing, and fishing. The state's low population density and slower pace of life are particularly appealing for families and individuals seeking a connection to nature and a strong sense of community. This unique combination of location and lifestyle is a significant factor in Montana's enduring appeal.

In summary, successful home buying in Montana for the middle class hinges on a clear-eyed assessment of finances and a flexible approach to location. Key takeaways include:

• Get pre-approved for a mortgage to understand your exact budget.
• Prioritize locations like Billings and Great Falls where median prices are closer to middle-class affordability.
• Consider the long-term value of title insurance—a form of indemnity insurance that protects against financial loss from defects in a property's title—which is a standard and recommended part of a real estate transaction.
• Factor in property taxes and maintenance costs beyond the mortgage payment.

Based on our experience assessment, while the statewide median price is high, strategic research into these more affordable markets can make the dream of owning a home in Big Sky Country a reality.