Search
Design

Why Montana Has Become a Magnet for Luxury Real Estate Buyers

The state offers an ideal blend of small-town charm and modern luxuries set against stunning natural beauty

By Geoffrey Montes
Lakeside cabin surrounded by tall trees with a dock and boats on clear, turquoise water under a blue sky.
A $25 million lakefront home in Kila, on the market via Glacier Sotheby’s International Realty. Photo: Gravityshots for Glacier Sotheby's International Reality

Long a haven for adventure seekers and outdoor enthusiasts, Montana is enjoying newfound popularity in the pandemic era due to its ample space, abundance of fresh air, and pristine natural beauty. As a result, the real estate market has skyrocketed, with the median home price jumping to $500,000—nearly double what it was in 2020. Further amplifying the trend is what some brokers have dubbed the “Yellowstone effect,” a reference to the hit TV drama in which Kevin Costner plays a dutiful cattle rancher in the state. “We can’t keep up with demand,” says Charlotte Durham of Big Sky Sotheby’s International Realty.

Spacious lakeside living room with stone fireplace, wooden ceiling, modern furniture, and open doors to scenic view.
Bigfork’s Stone Creek Camp sits on the shore of Flathead Lake and is priced at $20 million with Revel Real Estate. Photo: Heidi Long/Longviews Studio

Indeed, Montana was one of the few places to notch population increases in 2020 and 2021, with the majority of new occupants relocating from California, Washington, and Colorado. Even media baron Rupert Murdoch got in on the action, recently splashing out a record $200 million for a sprawling property in the southwest corner of the state. “Lately, I’ve noticed a slowdown from the frenzy of the past couple of years,” adds Durham. 

Cozy rustic log cabin with warm lights, surrounded by lush greenery and cloudy sky in a serene mountain setting.
The Big Sky Real Estate Co. recently listed this $16.5 million compound in Gallatin Gateway. Photo: Zakara Photography

Such a dip, however slight, offers prospective buyers an opening into what has become one of the country’s hottest housing markets. Among the buzziest areas is the aptly named Big Sky, a scenic area just outside Yellowstone National Park that boasts private residential communities such as the exclusive Yellowstone Club (the only private ski and golf club in the world) and Spanish Peaks Mountain Club, as well as luxury resorts Montage Big Sky and One&Only Moonlight Basin. “The Big Sky community was ready for an influx of residents,” says Martha Johnson, vice president of sales and founding broker of the boutique Big Sky Real Estate Co., noting the recent development of town-center amenities as well as a wealth of trails, fly-fishing spots, and world-class ski slopes. “We also have sophisticated infrastructure like underground fiber-optic lines that make it easy to work from home.”

Scenic view of a large building surrounded by trees and rolling hills under a blue sky with scattered clouds.
This 502-acre ranch in Three Forks is on the market for $12.9 million with Big Sky Sotheby’s International Realty. Photo: Val Westover

The affordability issue is particularly acute in prominent areas such as Bozeman, Kalispell, Missoula, Paradise Valley, and Whitefish. “But since we are such a huge state, many of our rural areas have not been as impacted by the market as those hot spots,” says Durham, who suggests the biggest surprise isn’t sticker shock but how easy it is to acclimatize to Montana’s cold winters. “Of all the people that I’ve helped move, I’ve not had one person or family say they made a rash decision,” she says. “People just love it here.”

A version of this article first appeared in print in our 2022 Fall Issue under the headline “Big Sky Bliss.” Subscribe to the magazine.