Montana has the fastest-growing housing market in the country, according to a recent report. Financial research company Bankrate released an analysis that says the average Montanan needs to earn nearly 78% more than before the pandemic to afford a typical home.
The analysis says Montana homebuyers now need to earn over $130,000 per year to afford the typical monthly mortgage payment.
Bankrate’s recent housing affordability study revealed that Montana saw the largest increase in the income needed to qualify for a mortgage on a median-priced home compared to other states.
Over the past four years, the median home price in Montana increased by $200,000.
Bankrate’s housing market analyst Jeff Ostrowski said local income doesn’t have as much sway over housing prices.
“What's driving the increase, it’s really been the influx of people into the state with the means to pay more than previous home buyers had paid,” Ostrowski said.
After Montana, Utah, Tennessee, South Carolina and Arizona saw the largest increases in income needed to afford a home.