Bozeman’s rental market has seen a significant shift, impacting tenants and landlords alike. Lauri Vandermark, a Bozeman resident, anticipates saving thousands on rent after renegotiating her lease. This change comes in the wake of a surge in new apartment constructions, contributing to one of Montana’s most expensive city markets.
Vandermark relocated to Bozeman from Georgia and shares a two-bedroom apartment with her daughter. With a new lease anticipated, her current $2,900 monthly rent may drop significantly. “We haven’t signed the paperwork yet, but so far it looks like it’s a go,” Vandermark stated. This trend of reduced rent was previously unimaginable in Bozeman, but real estate experts attribute it to the burgeoning supply of new apartments pushing prices down.
David Fine, Bozeman’s urban renewal program manager, advised, “It’s time to go negotiate your rent with your landlord if your lease is coming up.” According to Casey Rose of Sterling CRE Advisors, Bozeman added 3,042 rentals since 2021, with over 1,000 completed in 2024. Vacancy rates have surged to 12%-20% due to this development boom, leaving many units empty.
With vacancy rates ideally between 5%-10%, Bozeman’s current figures indicate an oversupply. In 2019, the city faced a less than 2% vacancy rate, leading to fierce competition for available housing. Now, the market dynamics are reversing, with two-bedroom rents falling to just over $1,700 monthly.
The Oxbow Apartments, off Huffine Lane, report 39 available units and offers up to two months free rent. Similarly, Bozeman’s Edison Apartments provide significant rent discounts, reducing one-bedroom costs to approximately $1,495 monthly. Despite the surplus, high-end developments like Highmark Bozeman and boötes continue to emerge.
Fine explained that post-COVID-19 construction aimed to meet urgent housing needs resulted in mostly market-rate, luxury apartments. Bozeman plans to construct around 1,200 units annually to meet future demands. Surplus market-rate rentals may help lower costs across the board, including older, less expensive units.
Bozeman’s mayor, Terry Cunningham, discussed affordable housing efforts, mentioning Beaumont Apartments, which offers income-restricted units for individuals earning below the area’s 60% median income. The city’s updated affordable housing ordinance encourages developers to reduce rents through various incentives.
Cunningham emphasized the importance of expanding housing to avoid limiting Bozeman’s population to high earners. More than 800 affordable housing units are in the works, with ongoing development aimed at sustaining accessible rent levels.
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