If you have been paying attention, you may have noticed there is an unusually large amount of construction works going on in Missoula over the past year. In 2017, Missoula broke a record for the pace of new constructions with more than a quarter of a billion dollars spent in new developments, and this doesn’t take into account all of the surrounding areas in the county that are outside city limits.

According to the record from the city’s Development Service office, the office issued about 1500 new building permits for projects in 2017 alone. The total market value of the construction was estimated at $277 million. This, of course, is more than $248.7 million recorded in 2016. There is no doubt that Missoula construction industry is booming. It is highly expected that 2018 will see more construction projects.

Most of these construction projects especially the large ones were publicly financed. Nonetheless, a significant number of these projects are privately financed as well. A good example of this is the new grocery store going in near Southgate Mall.

Some of the other ongoing projects include:

• New Tollefson Apartments (nine buildings, 330 apartments near the intersection of Mullan and Reserve) — $19.2 million.
• Hellgate High School (addition and remodel) — $19.1 million.
• New Mercantile Residence Inn (a five-story hotel going in on the corner of Front and Higgins in downtown Missoula) — $16.1 million.
• New U-Global Student Housing Project (52 pod-style apartments at the Old Sawmill District development) — $13 million.
• Phyllis Washington Education Center at the University of Montana (addition and remodel) — $12.6 million.
• New Hellgate Middle School — $11.6 million

Building in Missoula’s Economy

Perhaps, the reason for the recent surge in the new construction project in Missoula is the recovery of the economy from the recent national recession in 2014.

Since the recovery of the economy, the nonfarm payrolls increased by an average of 900 jobs to 59,600 jobs. The nonfarm market is expected to keep on increasing. As of today, some of the major employers in Missoula include organizations such as the Forest Service, Montana Rail Link, the University of Montana, as well as St. Patrick Hospital. The economy, as well as employment, has been increasing for the past 6 years leading to more new construction projects. This has also attracted investors who want to build their new business here as well as homeowners coming to retire in Missoula.

Missoula’s Population 

Since 2010, the population of Missoula has been increasing albeit at a slower pace than during the previous decades. The population of Missoula is estimated at 116,000 as at November 2016, up by an average of 1,025 since 2010.

In recent years, net-migration has contributed majorly to the growth of the population of Missoula. Most people are coming to Missoula to retire as a result of relative peace and lower housing costs in Missoula compared to larger metropolitan areas in the western United States.

Housing Market Trends In Missoula

If you have been noticing a surge in new construction projects in Missoula, you are right. Missoula industries are growing for the most part and net-migration is also increasing leading to more jobs and more spending on new construction projects.

As new constructions projects are coming up, a growing population and demand for affordable housing have continued to push up prices, making the market a profitable one for landlords and homeowners. The median price for all housing types in Missoula in 2018 is put at $268,000. Last year (2017), the population of Missoula increased 1.7% to roughly 117,000 residents leading to more demands in new homes. This has also lead to the city issuing 236 building permits for single-family homes in 2017. Homes which are placed on the market are quickly sold out especially when the price is affordable.

The supply of single-family homes is low and lots of houses are selling a lot quicker. Most of these houses are selling close to full price or over the asking price. In another report, it was discovered that real estate investors are now favoring multi-family construction over single-family homes. According to Paul Forstin with Territorial Landworks, most of contractors/investors are building more units in the last few years than they did 10 years ago.

The current trend in new construction projects in Missoula is the adoption of modern building/construction technologies. One of the latest technologies which have been featured mostly in new homes is PermaPanel – a lightweight cement panel known to be stronger, safer, better, and more affordable than the regular cement panel. Innovative homeowners, as well as experienced contractors, love PermaPanel because of its ability to make your home efficient. With PermaPanel, your home will become fire resistant as well as pest resistant. Moreover, it makes it easier to finish your construction work on time while at the same time reducing what you spend on new constructions.

MISSOULA HOUSING MARKET BY THE NUMBERS (September 2017):

• Homes sold September: 148;YTD 1,093
• Average days on market September: 109; YTD 106
• List-to-sale price September: 99%; YTD: 99%
• Median sold price September: $261,750; YTD: $267,776
• % homes sold under $350,000 September: 75.7%
• Homes actively listed at end of September: 420
• Months of inventory at end of September: 2.8

Conclusion

Missoula is witnessing a huge surge in both single and multi-family housing. The net immigration, as well as the economy, has been booming for the past five years. This trend is no doubt expected to continue for a foreseeable future. Right now, it is a seller’s market when it comes to housing. Homes constructed with latest construction technology such as PermaPanel will continue to see the fastest pace of sales.

About Benson Bondstone