HELENA — From Helena to Missoula, Montana’s homeowners and remodelers are feeling the ripple effects of rising material costs and unpredictable economic shifts. For many, that means finding creative ways to stretch their dollars while still making meaningful home improvements.

"We are noticing some changes in renovations. Mostly we're seeing them in flooring, lighting fixtures, bathrooms," explains real estate agent Heather Lay, who says some homeowners are trading high-end finishes for simpler updates that still add value. "Where they maybe had planned to put in a custom tile shower, now turning into shower insert with shower rod and curtain rod."

Lay isn’t alone in noticing this shift. Across Montana, general contractors say remodels remain in steady demand — but tighter budgets and shifting prices are reshaping what gets built, when, and how.

Builders like Mike Murphy know all too well how volatile material costs can disrupt even the best-laid plans. "If it's not just a two-week to one-month job, it can change a lot between when you start a project and when you're finishing it 6 months later," says Murphy, a general contractor who often works alongside Willie O'Brien, another Helena-area builder.

This unpredictability is being watched even more closely as new tariffs could drive prices higher. The National Association of Home Builders estimates that about $14 billion worth — roughly 7% — of materials used in U.S. residential construction come from overseas.

That means Montana’s remodelers, who already juggle long lead times, price swings and supply chain delays, could soon face even more pressure to find affordable solutions for homeowners.

Despite all this, Murphy says demand isn’t slowing down. "We always have remodels going on, whether that's a bathroom, a kitchen, or an entire place," O'Brien confirms.

One big reason is Montana’s mortgage climate: with interest rates hovering around 7% for several years, many residents who might otherwise sell and upgrade are staying put. Instead of buying a new home, they’re investing in remodels that help their current home fit their evolving needs.

"Instead of selling their home and buying the home that would then offer those amenities and features that they're looking for, we're seeing people take on renovation projects that would then replace that sell and buy," says Lay.

But doing big remodels all at once isn’t always realistic, especially as budgets tighten. Many owners and contractors are getting creative with phased renovations — tackling one project at a time as they can afford it.

"They can complete one phase first, recover, recoup a little bit, then go into another phase of it," Murphy explains.

For many Montanans, it comes down to prioritizing what’s truly necessary and saving the bells and whistles for later.

"What needs to be done, let's start there," Lay sums up.

While the housing market cools in some places, Montana’s renovation scene shows no signs of slowing — but more homeowners are planning smart, practical upgrades that match their budgets and the times.

Originally reported by Keith Grevenitz in KTVH News.