December 21st, 2021

How Much Does A Home Cost In Bozeman?

Photo How Much Does A Home Cost in Bozeman, Inside and Outside City, December 2021

What’s a Home Cost in Bozeman?

December 2021 – How much is a home in Bozeman? A home costs $953,825 in Bozeman, Montana (average). This is a ⇑ 61% increase in 2 years.

DEC.BOZEMANIN CITYOUT CITY
2021$953,825$774,400$1,176,625
2020$728,275$590,750$914,075
2019$593,050$511,950$734,525
2018$550,175$478,350$667,975

The best method for figuring the true cost of a Bozeman home is to look at closed sales, which reflect the true worth, what it should cost, of a Bozeman house, but these numbers are not publicized.

Photo How much do homes cost in Bozeman? Average price chart.
Chart 1: What’s the average sales price for a Bozeman home?

Therefore, the next best method to determine what a Bozeman home is worth/costs is to look at listing price. This would get you close, but it’s still skewed a bit, as the percent of list price (chart 3) in the past 5 years has been from 97% to over 100% of sales price.

Chart 1: Last year’s top average price–cost–of a Bozeman house inside the city was $590,742, up ⇑ $78,800 over 2019 and up ⇑ $112,400 over 2018.

Outside the city in 2020, the year’s top average price–cost–for a Bozeman home was $914,075, up ⇑ $179,550 over 2019 and a staggering increase of ⇑ $246,100 over 2018! Houses are expensive in Bozeman!

The average cost of a Bozeman house has increased ⇑ 51.3% inside the city and ⇑ 60.2% outside the city in the last two years–during Covid.

Chart 2: The top median price for a Bozeman home inside the city in 2020 was $540,000; in 2019, $460,000; and in 2018, $427,500. This is a ⇑ 21% increase in just 2 years.

Photo How much do homes cost in Bozeman? Median price chart.
Chart 2: What’s the median sales price for a Bozeman home?

Outside the city, the top median price for a Bozeman home in 2020 was $681,150, up ⇑ $127,150 over the previous year and a hefty increase of ⇑ $166,150 over 2018, just 2 years ago!

These are significant market price increases in the last 2 years for average and median Bozeman home sales prices.

Chart 3: In 2021, sales prices for Bozeman homes have been above 100% of list price.

Which is Best? – Average Price vs Median Price – Which is Better (charts 1 and 2)?

We’re dealing with Average and Median single-family Bozeman home costs (closed sales) here:

When looking at Bozeman home price statistics, average price tends to be the preferred statistical method.

Average price is found by simply adding all numbers and then dividing the sum of these numbers by the amount of these numbers.

Average price often depicts wild price swings, throwing off your search for a reasonable reflection of price.

Photo Average Percent of Last List Price For Bozeman Homes
Chart 3: What’s the average percent received of list price for a Bozeman home (over 100%)?

Median price, on the other hand, is another common method. Used as as an numerical phrase, median signifies a middle price in a set of Bozeman house prices.

Frankly, using the median price results in a better depiction of the typical or the middle price than using average price.

To find median price, line up the prices in order of value, e.g., 5, 9, 15, 33, 47, etc., and simply pick the middle number, i.e., median is 15.

If the number of numbers is even, 5, 15, 33, 47, take the average of the two middle numbers 15 +33 = 48/2 = 24 and use that single number, 24, as your median price.

So, what about the cost of a Bozeman luxury home?

In 2020, the sales price of a Bozeman home outside the city increased 3% more than the sales price of a home inside Bozeman.

It’s difficult to project future home prices in Bozeman, except to say that getting a handle on Covid-19 may slow the influx of new Bozeman home buyers and sellers.

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Taunya Fagan

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