BOZEMAN, Mont. – While monthly rent prices continue to increase in the Gallatin Valley, there is some good news for renters when it comes to the overall supply of apartments in the construction pipeline.
According to a point-in-time survey of apartment units performed by Sterling Commercial Real Estate Advisors (Sterling CRE), apartment vacancy in Bozeman is at 1.51% while the national standard is around 5%.
SterlingCRE collects commercial real estate data across Montana tracking vacancy, sale, lease and absorption information.
The apartment survey includes market-rate multifamily complexes with five or more units in Bozeman. Complexes with fewer than five units and/or income-restricted rental units were not included in the survey.
The first-ever Gallatin Valley House Report compiled by the Gallatin Association of Realtors and the Bureau of Business and Economic Research and the University of Montana last month showed monthly rent increased 11% in 2021 from 2020.
Sterling Commercial Real Estate reviewed the last 12 months of data on commercial apartments showing the average asking rent at $2,133.
“There’s a ton in the development pipeline you know upwards of 1,500 units, half of which are currently being built and the other half are in the permitting process so that would almost double the supply of multifamily units in Bozeman,” SterlingCRE Advisor Casey Rose said.
Rose said developers are currently building 730-plus new units with another estimated 650 units in permitting which could double the supply of rental housing in Bozeman.
The threat of unstable construction costs, labor shortages and possible rising interest rates could challenge some of these projects Rose added.