Montana’s Baby Boomer’s Outsized Influence on the Real Estate Market

Montana, Real Estate
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Montana’s population is older than the U.S. as a whole, with baby boomers (born 1946–1964) making up a significant share of residents and homeowners. In 2020, nearly 20% of Montanans were 65 or older, compared to about 17% nationwide. This is a sharp rise from 2010, when only about 15% of the state’s population was 65+. As the large baby boom generation has entered retirement age, Montana now has one of the highest senior population shares in the West.

Boomers are central to Montana’s housing market: they own roughly 40% of all homes in the state, one of the highest rates in the nation, far above their ~20% share of the population. This dominance is a product of both Montana’s older age profile and boomers’ high homeownership rates.

These demographic shifts have major implications for housing. An oversized cohort of Montanans is now in their late 50s to late 70s, often retired or approaching retirement. How these boomers behave—whether they stay put, downsize, sell, or move—profoundly affects Montana’s housing supply and prices.

Over 2018–2023, Montana experienced a housing boom alongside its baby boomers’ transitions. The state’s population growth accelerated (fueled partly by newcomers including retirees), but housing construction didn’t keep up. By 2023, Montana had a severe housing shortage, contributing to soaring prices and affordability challenges. Baby boomers have been both impacted by and contributors to these trends, from aging in place in coveted family homes (tightening inventory) to relocating for retirement or financial reasons.

Boomers Staying Put and Aging in Place

Montana home in winter
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One standout trend of 2018–2023 is that most Montana baby boomers chose to stay in their current homes as they grew older, rather than sell or downsize. This mirrors a national pattern: a recent Redfin survey found 78% of U.S. homeowners aged 60+ plan to remain in their homes as they age.

Aging in place has long been common, but it has become even more prevalent in this tight housing market. Boomers nationwide now own more homes than any other generation and are holding onto them longer. The share of U.S. owner-occupied homes headed by someone over 55 jumped from 44% in 2008 to about 54% in 2023. In other words, older Americans (many of them boomers) have gained an even larger foothold in the housing market.

In Montana, where boomers own nearly two-fifths of homes, their tendency to stay put has significant effects. Many are remaining in the houses where they raised families—often larger, three-bedroom homes—instead of putting those homes on the market for younger buyers. This locks up inventory, contributing to the housing shortage.

Homeowner tenure has lengthened considerably compared to a generation ago, and in Montana’s desirable areas it’s not uncommon to find retirees still in their longtime single-family homes. A study in early 2025 highlighted that boomers’ desire to “never sell” is a major factor keeping inventory at historic lows. In fact, over three-quarters of Montana’s older homeowners want to age in place, and relatively few are actively listing their homes for sale.

Why Boomers Are Staying Put

First, many are financially incentivized to stay. After years of home price appreciation, a large share of Montana boomers have paid off their mortgages or enjoy very low interest rates. They have built substantial equity, and their monthly housing costs (property tax, insurance, maintenance) are often cheaper than trying to rent or buy something new.

Nationally, over a quarter of boomers not planning to sell say it’s because their home is fully or mostly paid off. In Montana, those who bought their homes years ago are sitting on big equity gains and see little financial upside to moving. Moreover, downsizing in Montana’s current market is difficult – selling a home might fetch a high price, but any replacement could be just as expensive. As one housing counselor noted, with mortgage rates high and inventory low, older Montanans have “few options to downsize” into cheaper homes or condos locally.

Just as importantly, personal and emotional factors keep boomers in place. In surveys, over half of boomers simply say they love their home and see no reason to move. After decades in the same community, moving can be daunting. Their home is full of memories, and it allows them to maintain independence. Many Montana boomers are healthy and active, not feeling a pressing need to relocate to senior housing. Those who might consider downsizing often delay it, not wanting to deal with the hassle and change.

The consequence is that fewer homes are being listed for sale by this large generation. During 2018–2023, first-time buyers (mostly millennials) found themselves competing for a limited pool of homes, many of which were still occupied by boomers. This dynamic of boomers staying put kept housing supply tight across Montana. It’s one reason why Montana’s for-sale inventory shrank and prices climbed so steeply in this period.

Downsizing: Dreams vs. Reality

Montana ranch style home
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While most boomers stayed put, a subset did attempt to downsize or modify their housing – with mixed success. Downsizing, in theory, appeals to retirees who no longer need a large home or wish to reduce upkeep. In Montana, some baby boomers wanted smaller, more manageable homes or single-level layouts for aging comfort. Indeed, about 1 in 5 boomers nationally say they’d consider moving to a 55-plus retirement community or have already done so. In Montana’s cities like Billings and Missoula, new 55+ communities and senior apartments opened in the late 2010s, anticipating this demand.

However, the reality in 2018–2023 is that downsizing proved challenging for many Montanans. The surge in home prices meant that “buying down” often wasn’t affordable – a smaller condo or townhouse could cost nearly as much as a larger home sold. For example, a retired couple in Bozeman might sell their longtime house for a high price, only to find even modest condos are pricey and in short supply.

Statewide, home values jumped about 60% from 2020 to 2023 alone, far outpacing income growth. One Bozeman renter in her 60s noted that many of her friends have had to leave town because they could no longer afford housing after their rents doubled. For homeowners on fixed incomes, property taxes and insurance also shot up with home values, making downsizing locally less enticing if it meant trading one expensive situation for another.

Another barrier was the scarcity of suitable homes to downsize into. In Montana’s tight market, smaller single-level homes or condos in safe neighborhoods were snapped up quickly (often by investors or out-of-staters), leaving limited options for locals. New construction lagged population growth – Montana’s housing unit count rose only ~7% in 2010–2020 despite a 10% population increase, and building struggled to catch up during the pandemic.

For those who did downsize, the motivations were strong. Health issues sometimes forced a move – e.g. an older homeowner with mobility problems might move from a rural two-story farmhouse to a small ranch house in town, closer to medical facilities. Others downsized to be closer to family or to reduce maintenance burden (trading a big yard for a condo with HOA handling chores).

The outcome is that downsizing did not provide much relief to the housing gridlock. If anything, more boomers wanted to downsize than were able to. Montana housing counselors observed cases of “house-rich, cash-poor” seniors: they live in a valuable home but lack liquid income, and selling would leave them hard-pressed to find an affordable replacement or rental.

A troubling extreme of this trend has been an increase in older Montanans falling into housing insecurity. With nowhere affordable to go, a few have even ended up homeless. In rapidly-growing Bozeman, the number of unhoused seniors (65+) seeking shelter climbed more than 60% in a year (30 to 48 individuals) by 2023, a crisis attributed to high living costs outpacing fixed incomes.

Boomers in the Buying Market: Cash and Competition

buying a home with savings
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While many boomers stayed put, it’s important to note that baby boomers also became a driving force on the buying side of Montana’s housing market during 2018–2023. In fact, boomers nationally overtook millennials as the largest group of home buyers around 2022. Montana reflected this pattern: boomers, often armed with substantial equity or savings, were active in purchasing homes for retirement, relocation, or even investment.

Several factors enabled boomers to punch above their weight as buyers:

Equity and Cash Advantage

Longtime homeowners could sell homes elsewhere (often in high-cost states) or tap decades of equity, giving them large down payments or all-cash ability. NAR data shows that half of older boomers (aged ~68–77) and 40% of younger boomers (59–67) purchased homes entirely with cash. In Montana, real estate agents noted many incoming buyers in their 60s were able to outbid others with cash offers, having sold property in places like California or Colorado for a premium.

Trading Up or Second Homes

Some Montana boomers actually bought new homes while keeping their existing ones. For example, a few employed a “buy first, then sell” strategy: purchase a retirement-friendly house (perhaps a single-story in a warmer part of Montana or a condo in town) using cash or a bridge loan, then later sell the old family home. Others acquired second homes – cabins, lake houses, or condos – as part-time residences, which they may eventually retire to full-time.

Desire for New or Customized Homes

Interestingly, boomers showed interest in new construction when available. Nationwide, about 30% of home buyers over 60 chose a newly built home, the highest rate of any age group. The top reason was to avoid the hassle of renovations and get modern features for aging comfortably. In Montana, when new single-level homes or condos came on the market, boomers often snapped them up.

The boomer buying wave contributed to multigenerational competition in Montana’s housing market. It wasn’t just millennials chasing homes; boomers were too, sometimes for the very same properties (mid-sized single-family homes in nice neighborhoods). An NPR report in 2023 noted that in the tight U.S. housing market, millennials and boomers often compete for similar homes, especially as boomers relocate or downsize to houses that suit both first-time buyers and retirees.

Montana is a prime example: a three-bedroom, two-bath ranch house in Billings might appeal equally to a 30-something family and a 70-year-old couple. With inventory limited, such overlaps led to bidding contests that boomers often won thanks to their cash and experience.

Retirees on the Move: Relocation Trends

Billings, Montana
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One of the most striking developments from 2018 to 2023 was a surge in relocation by retirees – both into Montana and out of Montana (as well as within the state). Baby boomers, as they retired, often reconsidered where they wanted to live their golden years.

Inbound: Boomers Moving to Montana

During the pandemic and post-pandemic years, Montana became something of a retiree magnet. Traditionally, states like Florida and Arizona top the list for retirement moves, but Montana emerged as an unlikely contender. A 2022 study of Census data revealed that Billings, Montana, was #5 in the nation for boomer in-migration among major cities. That year, Billings gained about 3,400 new residents ages 55 to 74, with over half (1,842) moving from out of state. It was one of only two cities outside the Sunbelt to rank in the top 10.

New retirees moving into Montana often hailed from higher-cost states on the West Coast (California, Washington, Oregon) or from colder Upper Midwest states. They were drawn by Montana’s quality of life and perceived advantages:

  • Lower cost of living (historically): While Montana’s housing costs spiked recently, they still were often lower than coastal metros. Many transplants sold a home in Seattle or Los Angeles, bought a nicer house in Montana for a fraction of that price, and pocketed the difference.
  • Tax and financial benefits: Montana has no state sales tax and relatively moderate property taxes. Incoming retirees cited better tax advantages as one reason for choosing Montana.
  • Natural beauty and lifestyle: The allure of “Big Sky Country” is strong. Retirees can enjoy world-class fishing, hiking, and skiing. Many boomers moving in were active retirees looking for outdoor recreation and a scenic environment.
  • Smaller cities with amenities: Towns like Bozeman, Missoula, and Kalispell offer cultural amenities, restaurants, and healthcare while still being close to wilderness. This balance is very appealing.

The influx of out-of-state boomers helped fuel Montana’s housing demand. These buyers typically had substantial resources, driving up prices in desirable areas. For instance, Kalispell’s home prices jumped ~85% from 2018 to 2023, partly due to incoming retirees and remote workers. Helena’s prices surged 91% and Butte’s 92% in that span, showing that even smaller markets saw significant boomer-influenced growth.

Outbound: Boomers Moving from Montana

On the flip side, not all of Montana’s boomers stayed in-state. Some chose to leave Montana upon retirement or in response to the rising costs. With home values skyrocketing, a number of longtime Montana residents saw an opportunity to cash out and relocate to cheaper areas. Realtor Nick Zimmer in Bozeman mentioned he had clients who, facing Bozeman’s high prices, decided to move to Arizona for more affordable living.

Common motivations for Montana boomers moving out included:

  • Warmer climate and health reasons: Montana’s harsh winters can be tough as people age. Some retirees ultimately opted for Sunbelt locales (Arizona, Nevada, Texas, or Florida) to enjoy milder winters and avoid shoveling snow.
  • Proximity to family: Many of Montana’s young people leave for jobs elsewhere (a “brain drain” effect). As a result, some boomer parents and grandparents eventually relocate to be closer to adult children and grandchildren out of state.
  • Affordability and services: Ironically, while Montana attracted out-of-state retirees for affordability, some locals found other places cheaper. By 2023, Montana was ranked the least affordable state in terms of home prices relative to income.

Intrastate Moves: Within Montana

A quieter trend was relocation within Montana. As boomers retired, some shifted from one part of the state to another:

  • Rural to urban moves: It’s common for retirees from remote ranches or farms to move to town for convenience. In Montana, a number of older residents of very rural counties (especially in the east and north) relocated to regional hubs like Billings, Great Falls, or Missoula.
  • Small town to small city: Similarly, folks from tiny towns might move to larger towns within the same region. A retiree from a community of 1,000 might move to the nearest city of 10,000–50,000 for better infrastructure.
  • Amenity moves within Montana: Some boomers simply relocated to be in their ideal Montana locale. For example, someone living in a prairie town might always have dreamed of a cabin in the mountains.

Regional Variations in Housing Decisions

Kalispell Montana
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Montana is a large and diverse state, and baby boomers’ housing trends varied by region:

Western Mountain Towns (Bozeman, Missoula, Kalispell)

These areas saw rapid growth and soaring home prices, fueled by both locals and newcomers. Boomer homeowners here benefited greatly from appreciation – e.g. Missoula’s median home price jumped about 66% in five years. Many remained in place to enjoy that equity or passed homes to family. Those who sold often did so at a premium and possibly left the area (as local affordability tanked).

Boomer buyers from out-of-state eagerly entered these markets, drawn by recreation and amenities. Kalispell (Flathead County), traditionally a retiree haven, saw one of the highest influxes of retirees, helping drive an 85% price surge. Healthcare facilities in Kalispell expanded to serve the growing senior cohort.

Eastern Cities and Rural Areas

Billings, the state’s largest city, became a hotspot for migrating boomers. It already had a sizable local retiree base, and by 2022 it gained many more. Billings offers excellent medical services which is a big draw for seniors statewide. Its housing remained more affordable than Bozeman’s, though prices rose substantially.

In general, eastern Montana (Miles City, Glendive, etc.) did not see an influx of new retirees – these areas are remote and lack the amenity draw. Many eastern counties continued aging in place, with high elderly percentages due to youth exodus rather than retiree in-migration. Some eastern boomers moved to Billings or out of state when they retired, contributing to population decline back home.

Key Motivations Behind Boomer Housing Trends

Understanding why baby boomers made these housing choices is crucial. Several core motivations drove the trends between 2018 and 2023:

Retirement Lifestyle

Many boomers made housing moves (or non-moves) based on their vision of an ideal retirement. Those who moved to Montana often did so to fulfill lifestyle dreams – enjoying outdoor recreation, owning land with mountain views, or living in a small friendly community. Conversely, those who stayed put in Montana likely value the familiar lifestyle: neighbors, routines, and the comfort of home.

Financial Considerations

Affordability was a double-edged sword. Some boomers came to Montana for its historically lower cost of living and affordable housing (relative to coastal cities), enabling their retirement dollars to stretch further. At the same time, local boomers were keenly aware of rising costs. Many stayed in their current homes because it was financially prudent – they often had low fixed housing costs and feared that moving would subject them to high new mortgages or rents.

Family and Community

Housing decisions were often about family. Boomers with children and grandkids in Montana tended to stay or even move closer to them. On the other hand, those whose families were elsewhere had to choose between Montana and reuniting with family. Social connections in the community also mattered: many boomers have deep roots in Montana communities, from church groups to fishing buddies.

Healthcare Access

As boomers age, access to quality healthcare becomes a larger concern. In Montana, this factor influenced moves both within and beyond the state. Boomers in very remote areas often moved closer to hospitals (e.g., into Billings or Missoula) so that specialists and emergency care are nearby. Those moving into Montana from out-of-state typically chose areas with good medical infrastructure.

Conclusion

The years 2018 through 2023 were transformative for Montana’s housing landscape, especially for the baby boomer generation. In these six years, Montana’s home prices soared to record heights, inventory became scarce, and the state’s population of seniors swelled. Baby boomers were at the center of this story.

They dominated homeownership in Montana and, largely, they decided to hold onto that perch – aging in place in big numbers and thus constraining the supply of homes coming on the market. Those who did move tended to be strategic about it: leveraging their equity to buy new homes (often with cash), or relocating to the places that best fit their retirement dreams and needs.

Compared to the previous decade, we saw fewer boomers selling and downsizing than expected, and more instances of either staying put or moving inbound to Montana. The anticipated great sell-off of boomer-owned homes has been more of a trickle, delayed by boomers’ longevity and preference to remain homeowners as long as possible.

By 2023, first-time buyers in Montana were struggling not just against economic forces, but against an inventory locked up by older generations. At the same time, Montana enjoyed an influx of wealth and knowledge from retiring boomers who chose the state as their new home, contributing to local communities and economies.

Looking forward, Montana’s housing challenges and opportunities will remain intertwined with the baby boomers. As this big generation continues to age into their late 70s and 80s over the next decade, some inevitable transitions will occur. More homes will eventually come to market (the so-called “silver tsunami” of the 2030s), which could relieve some pressure and pass the torch to younger families. Until then, Montana’s boomers will likely keep a firm grip on the housing market’s direction.

References

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