Montana ranked 20th in a new national study on affordable housing, highlighting both the progress and challenges facing the state as home prices across the U.S. continue to climb.
The analysis, conducted by Construction Coverage, examined housing affordability and construction spending using data from the U.S. Census Bureau and Zillow. The study found that affordability remains a pressing issue as prices remain elevated nationwide and construction costs continue to rise.
According to the report, Montana’s average construction value per new housing unit authorized was $252,172, slightly below the U.S. average of $260,229. In 2024, the state authorized 5,367 new housing units, with a combined total value of nearly $1.35 billion. The median home price in Montana stood at $465,421, with multi-family housing making up 43.4% of new units—well above the national share of 33.6%.
Nationally, affordability has worsened in the wake of the pandemic housing surge. As of early 2025, buyers earning about $75,000 annually could afford just 21% of homes on the market—less than half of what was available pre-pandemic, according to the National Association of Realtors.
“Many point to immigration policies impacting construction sites, tariffs causing a rise in construction costs and overall economic uncertainty, which makes companies feel less confident in making investments,” the Design Build Institute of America noted in response to the August national jobs report, which highlighted construction slowdowns.
The report also found that:
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The U.S. median home sale price reached nearly $374,000 in June 2025—more than double its 2012 low.
Real residential construction spending fell 8.5% between June 2024 and June 2025.
The average construction value per new home rose 7.6% from 2023, excluding land.
Delaware ($146,106) and New Jersey ($170,086) recorded the lowest average construction values per unit, while major metros like Omaha, Richmond, and New York reported lower costs relative to the national average.
For Montana, the results place the state near the middle of the pack, showing it is faring better than many Western states where affordability challenges are most severe. Yet, the state’s relatively high median home price underscores the tension between supply and demand.
Nationally, metro areas such as Miami, San Francisco, Portland, and Boston-Cambridge recorded some of the highest construction values per unit, reflecting higher building costs and a greater focus on luxury housing. By contrast, Montana’s mix of multi-family development and below-average construction costs gives it an edge in addressing affordability—though pressures remain as prices outpace wage growth.
The study highlights the ongoing need for policy and industry efforts to expand the supply of affordable homes, particularly in growing states like Montana, where demand is expected to remain strong in the coming years.
Originally reported by Non Stop Local News.
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