UNPACKING THE “CONSTRUCTION CRUNCH” IN MONTANA

Home ownership remains near a 50-year low, but buyer demand is rising, says Realtor Robyn Erlenbrush in a column for the Bozman Daily Chronicle. However, low single-family home inventory, low labor supply, and rising home prices have put home ownership out of the reach of many, especially in the West and Midwest.

“Finding a better balance between this desire to find a home and the availability of a property that meets both criteria and budget is the key to a truly successful 2017,” Erlenbrush says.

On the local level, Erlenbush notes that 30 single-family home permits and four duplex permits were issued in her home city of Bozeman, Montana in January 2017 – the highest number of starts recorded in the city since 2006, up from 15 single-family homes and three duplex permits in January 2016.

“Our local news headlines for the past couple of years have included talk about the limited availability of both skilled and unskilled laborers, so the increased demand to hire employees continues on. As with any basic economics, this supply shortage will lead to higher wages and therefore increased overall home cost to the consumers. In the cyclical boom or bust fashion, the Southwest Montana building sector is booming.”