Montana's Impossible Housing Situation

[Forkyfinder]

Here are 497 listings for $350K or less in MT:

https://www.landwatch.com/montana-land-for-sale/homes/price-under-350000/sort-price-low-high

glendive - an ideal location!

 

[Gerald Martin]

So I get what you’re saying, seriously. I’m talking about building a house, just the house, for 200k, not including most labor costs because I would be doing the labor if I was building MYSELF a home, and then talking about selling said home, Land and all- for 1m. The cost of the land must be factored in if the land is selling with the house lol.

So I get it. I do. Call me an idiot. Sometimes I am.

But again I say, when we started those houses those lots were CHEAP. Like 10 grand cheap. Now they’re like 200k just for the lot, if they aren’t already accounted for….
When some New Yorker can move into a house I slapped up in a 5 days and is move-in ready in like 6-8 weeks from breaking ground- SIGHT UNSEEN- for 800k and call it a “good deal” it makes the value of these homes rise so much more significantly than the COST to build it. There was a time that a 3/4” sheet of underlay was like $70 a sheet and the cost did start reflecting a little more but wages did not. The people that grew up here making this community so “desirable” are not gonna be able to stick around much longer.

I liked the thread about “how many of you are millionaires” because I feel that helped us peasants to understand the headspace of a great number of you guys too….

If your 200k was house only, materials only, then you weren’t exaggerating much. You can still build a nice home yourself for 200k in materials.

I was running some rough numbers myself on that lot I referenced earlier and a 1600 square foot 3 bed, 2 bath with a small 2 car garage with medium grade finishes. Materials and land and doing all the work I legally could ( not plumbing or electrical) I was figuring a build cost of $350K for a home with a value of $530-575K. It’s a great investment to have a lot of equity if it’s your home and you can figure out financing.

If you’re doing it on speculation and you have to sub out all labor, that build cost just jumped to @$450K at 9% interest on a construction loan.
Figure in an additional $40K for financing and suddenly you’re looking at a profit margin of @10% or less for nearly half a million investment without the certainty of selling.

Some folks are making great money if they can self finance and sit on a property without dropping the price but it’s not like it’s without risk.

 

[Ben Lamb]

How about factory built homes? The site says they have a high quality warranty. LOL.
To be honest, I grew up in a small house built in the late 60's early 70's. It was "average" quality for that time, but would be seen as a POS today. I would bet some of these factory homes today are better than that house when it was originally completed. It would be interesting to see the opinions on the CC subdivision.

Cameron Crossing - New Bozeman Community

Cameron Crossing is Bozeman Montana's Newest Community. Search homes for sale — New Construction starting at only $230k

cameron-crossing.com

I don't know about these but I'd say the house you grew up in in the 60's and 70's was far more affordable than a comparable property today. The median cost of a house in 1972 was $26700. Adjusted for inflation, that's about $201K. But then the factor in the wage stagnation and increase in debt-heavy consumerism and I think you end up putting even these houses out of reach for a ton of folks.

Some prefabs are great quality. Some are crap. From an equity stand - unless it's pre-fab stick built and set like a traditional framed house, you're likely not building much long term equity with a pre-fab. If those work for folks, awesome. YMMV

 

[Ben Lamb]

glendive - an ideal location!

Some time-shares in there as well.

Although, Glendive is an awesome town. So is Miles City!

 

[Drake4]

How about factory built homes? The site says they have a high quality warranty. LOL.
To be honest, I grew up in a small house built in the late 60's early 70's. It was "average" quality for that time, but would be seen as a POS today. I would bet some of these factory homes today are better than that house when it was originally completed. It would be interesting to see the opinions on the CC subdivision.

Cameron Crossing - New Bozeman Community

Cameron Crossing is Bozeman Montana's Newest Community. Search homes for sale — New Construction starting at only $230k

cameron-crossing.com

These homes come w/ an $850/month "lot rent" as well.