Montana's Impossible Housing Situation

[MThuntr]

I overpaid but got before the big bump with a low interest rate. I'm married to my place now...can't afford to move much anywhere besides bfe nebraska

 

[Pagosa]

I've built multiple for way under $200 per foot, including land that was purchased in 2012/16, but not anymore. I've heard prices of $450 per sq/ft. The sub contractors have more than doubled. A lot in Flathead valley is way over 200k now. Even in the Mission valley a lot will be 120k.

 

[Rie Bread]

I overpaid but got before the big bump with a low interest rate. I'm married to my place now...can't afford to move much anywhere besides bfe nebraska

I’m in the same boat but the price premium was worth it for my family, even if we went underwater. Happy to be here.

 

[Southern Elk]

I have a place that I can afford, but I worry about my kids being able to afford to live here. I really don’t see how they will be able to.

 

[338win]

 

[Nick87]

Plus property. mtmuley

Don't forget well and septic. Everyone always seems to forget that one.

 

[Doublecluck]

I built a 2290 sq ft house for around 350-400 including the land I purchased for 60 when it was cheap, it’s worth 750-800. The land now would be around 150. And I did half the work (drywall/siding on) with my own two hands. And I have 20+ years dealing with other tradesman. I’m gonna build one a year going forward but the margins are a lot slimmer now. Houses around here have leveled off some. If you got capital, a little talent, 20%+ down, some reserves, good credit, can convince a bank you can do it, you can do it.

My 22 y/o daughter just bought her first home here in Broadwater county about 5 months ago. Sucks to travel to Bozeman or Helena but she got twice the house she could in Gallatin county. RD loan. No money down.

She wants to build houses with me. She has this “great” idea of building houses and selling for tight margins. She’s like if we do that, like why do we need to make 20/30/40% margins? We could do it for 10%. After a somewhat heated debate about economics and the world, and “rich” people, and politics, etc. I was like well ok so let’s just say we do this, sell them for below market value, what do you think the people that buy them are going to do with the money they make selling them at market value? Her hearts in the right place.

The business I manage in Montana don’t have any employees under 62,500 and most will be 70-90k with a little talent and motivation.

 

[Straight Arrow]

I can build you a house for $200,000, that you can quickly sell thereafter for $1,000,000.

$200k for property, utilities, driveway, structure, doors, windows, finishes, mechanical, electrical, landscaping ... ready for occupancy?! You would not sell it for $1 million without all that and more, even without furniture furnishings. Your $200k cost selling for $1 million assertion seems highly doubtful.

 

[cgasner1]

I built a 2290 sq ft house for around 350-400 including the land I purchased for 60 when it was cheap and it’s worth 750-800. The land now would be around 150. And I did half the work (drywall/siding on) with my own two hands. And I have 20+ years dealing with other tradesman. I’m gonna build one a year going forward but the margins are a lot slimmer now. Houses around here have leveled off some. If you got capital, a little talent, 20%+ down, some reserves, good credit, can convince a bank you can do it, you can do it.

My 22 y/o daughter just bought her first home here in Broadwater county about 5 months ago. Sucks to travel to Bozeman or Helena but she got twice the house she could in Gallatin county. RD loan. No money down.

She wants to build houses with me. She has this “great” idea of building houses and selling for tight margins. She’s like if we do that, like why do we need to make 20/30/40% margins? We could do it for 10%. After a somewhat heated debate about economics and the world, and “rich” people, and politics, etc. I was like well ok so let’s just say we do this, sell them for below market value, what do you think the people that buy them are going to do with the money they make selling them at market value? Her hearts in the right place.

The business I manage in Montana don’t have any employees under 62,500 and most will be 70-90k with a little talent and motivation.

It would a lot better on a 6 hour project not a 6 month one.

 

[Gerald Martin]

Cheapest buildable lot currently listed on Zillow in Bozeman is 7500 square feet for 136,000. 1,600 square foot 3 bed/2 bath with a small garage at a minimum $250 per square foot build cost adds another $400K. Total build cost of @ $536,000 is right in line with homes of that caliber on the market.
Knock about $150,000 off that total build cost if you’re only buying materials and doing all the work yourself. Then you have to figure out if you want to try and work full time on it without an income during that time or try to do it evenings and weekends for the next year and a half….

 

[buckbull]

Maybe living in the middle of corn fields isn't that bad.

 

[Elky Welky]

Don't forget well and septic. Everyone always seems to forget that one.

Or they just prefer not to think about that crap.

 

[Nick87]

Or they just prefer not to think about that crap.

Adds up quick.

 

[Flatbrimmer]

You’re a framer, right? There’s a lot more that goes into a house besides framing.

I was strictly framing for almost 9 years. I do everything.

Property obviously not included.

I said I could. Not some Joe Shmoe you hire off the yellow pages dude

 

[Gerald Martin]

I was strictly framing for almost 9 years. I do everything.

Property obviously not included.

I said I could. Not some Joe Shmoe you hire off the yellow pages dude

I’ll pay you $300k for a house that I can sell for a million…

 

[mtmuley]

I’ll pay you $300k for a house that I can sell for a million…

I'll will too. mtmuley

 

[Gerald Martin]

Adds up quick.

Especially if you don’t think about it. Wait, are we talking about the money or the ?

 

[Nick87]

I’ll pay you $300k for a house that I can sell for a million…

Price gouger...I was gonna go 210k.

 

[Southern Elk]

I was strictly framing for almost 9 years. I do everything.

Property obviously not included.

I said I could. Not some Joe Shmoe you hire off the yellow pages dude

As you know, I’m a GC. I keep line item budgets in a spreadsheet for all my builds. I’m not saying you can’t make a lot of money, but your numbers are exaggerated.

 

[Nick87]

Especially if you don’t think about it. Wait, are we talking about the money or the ?

Yes.