Where is Western Montana Real Estate headed in 2026?

If you’ve been watching the Western Montana housing market the last few years, you know it has been a roller coaster — steep climbs (2020-21) and a whole lot of “wait… they paid how much?!” As we head into 2026, things are finally starting to level out a bit. Not boring, not crashing… just settling into something that actually feels a bit more manageable.

Those wild price jumps we saw from 2020 to about 2023? They’ve calmed way down. Going into 2026, we’re seeing more normal appreciation with values still holding strong across Missoula, the Bitterroot, the Flathead, and the smaller towns sprinkled in between. They’re just growing at a pace that no longer makes your eyes pop!

We’re also starting to see a little more inventory, which is a positive! But it’s not equal across the board. Entry-level and mid-priced homes are still the tightest part of the market. If you’re looking under roughly $450K, competition is very much alive…however the inventory of homes under $400K is higher than we’ve seen in several years. Meanwhile, higher-end homes offer more options, more breathing room, and buyers are actually able to negotiate again without feeling like they’re insulting sellers with honest negotiation.

One thing to keep in mind – people are still moving to Montana. They want to live here — for the lifestyle, the scenery, the sense of community, and honestly… just to slow down a bit. Remote work hasn’t disappeared, and folks from bigger cities still see Montana as a place to reset. That steady in-migration keeps demand healthy and helps support prices, even as the overall market cools.

The biggest challenge heading into 2026 is affordability. Wages haven’t kept up with past price surges, and even with inventory improving, it’s still a challenge for first-time buyers. Expect continued talk about zoning changes, denser building, and creative ways to get more housing on the ground. Overall, the Western Montana market is shifting into a more balanced phase. It’s not the chaos of the past few years, but it’s also not sleepy. It’s a healthy, active market that’s starting to feel a little more predictable!

To learn more or chat about our local market anytime throughout the year, call or text and let’s do coffee or cocktails!