HomeMy WebLinkAboutBozeman 2025 Q2 Economic and Market Update_12-22Economic & Planning Systems, Inc.
The Economics of Land Use
Prepared by:Prepared for:
City of Bozeman, MT Economic Development Department
Report
Bozeman
2025 Q2 Economic
and Market Update
December 2025 EPS #233073
ii Bozeman 2025Q2 Economic and Market Update
Table of Contents
2
3
4
5
6
1 City Snapshot and Summary 1
City Snapshot 1
Economy 9
Economic Base 9
Job Trends 12
Wages 15
Government Employment 18
Commercial Real Estate 19
Office Market Trends 19
Industrial/Flex Market 22
Retail Market 26
Accommodations Market 29
Hotel Market Snapshot 29
Residential Real Estate 35
Construction 35
Housing Prices 36
Multihousehold Market 37
Affordability 44
Population Forecasts and Housing Demand 47
Forecast Summary 47
Scenario Comparisons 49
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Table of Contents
TablesTable 1. Population and Housing Units, 2010-2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Table 2. MSU Enrollment, 2010-2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Table 3. Peer City Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Table 4. Total Employment, 2019-2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Table 5. Job and Wage Growth, Top Sectors, Gallatin County, 2019-2024 . . . . . . . . . . 15
Table 6. Population 25+ by Educational Attainment, Bozeman, 2025. . . . . . . . . . . . . . 17
Table 7. Government Employment, 2019-2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Table 8. Office Market Summary , 2020-2025 Q3. . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Table 9. Recent Office Development, Gallatin County. . . . . . . . . . . . . . . . . . . . . . . . . 21
Table 10. Industrial/Flex Summary, 2020-2025 Q3 . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Table 11. Recent Industrial/Flex Developments, Gallatin County. . . . . . . . . . . . . . . . . . 25
Table 12. Retail Summary, 2020-2025 Q3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Table 13. Recent Retail Projects, Gallatin County. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Table 14. Hotel Summary, 2020-July 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Table 15. Notable Hotel Development and Construction, Gallatin County 2020-2027 . . 31
Table 16. Bozeman Permit Trends, 2020-2024. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Table 17. Home Price Trends, 2018-May 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Table 18. Multihousehold Summary, 2020-2025 Q3. . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Table 19. Recent Multihousehold Construction, 2024-2025 . . . . . . . . . . . . . . . . . . . . . 39
Table 20. Bozeman LIHTC Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Table 21. New vs Existing Multihousehold Trends, Bozeman. . . . . . . . . . . . . . . . . . . . . 41
Table 22. Required Annual Income to Afford Median Home Price, 2024-July 2025. . . . . 44
Table 23. Cost Burdened Housing Units, 2019-2023 . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Table 24. Housing Unit Demand Forecast By Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Table 25. Part-Time/Second Homes Forecast. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Table 26. Worker Commuting Pattern Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Table 27. Housing Unit Demand by Type, City of Bozeman . . . . . . . . . . . . . . . . . . . . . . 51
iv Bozeman 2025Q2 Economic and Market UpdateFiguresFigure 1. Gallatin Valley Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Figure 2. Bozeman Yellowstone International Airport Destinations . . . . . . . . . . . . . . . . 7
Figure 3. Covered Wage and Salary Employment, Bozeman and Gallatin County, 2024. . . 9
Figure 4. Private Employment Trends, Bozeman and Gallatin County, 2019-2024 . . . . . 13
Figure 5. Unemployment Rate, 2010-August 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Figure 6. Change in Employment by Wage Quartile and 1-Person AMI, Bozeman,
2022-2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Figure 7. Office Deliveries, 2010-2025 Q3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Figure 8. Industrial/Flex Deliveries, 2010-2025 Q3 . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Figure 9. Retail Deliveries, 2010-2025 Q3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Figure 10. Hotel Room Deliveries 2010-July 2025. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Figure 11. Occupancy Rate by Month, January 2022-July 2025 . . . . . . . . . . . . . . . . . . . 32
Figure 12. Average Daily Rate, 2010-July 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Figure 13. Multihousehold Deliveries, 2010-2025 Q3 . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Figure 14. Market Rate and Affordable Multihousehold Vacancy Rate and Deliveries,
Bozeman. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Figure 15. Vacancy Rate in New vs Existing Multihousehold Development, Bozeman. . . . 42
Figure 16. Bozeman Multihousehold Deliveries and Vacancy Rate, 2010-2025 Q3 . . . . . 42
Figure 17. Bozeman Effective vs Asking Rent per unit, 2019-2025 . . . . . . . . . . . . . . . . . 43
Figure 18. Income Gap to Afford Median Priced Home, Bozeman, 2024 . . . . . . . . . . . . . 45
Figure 19. Income Gap to Afford Median Priced Home, Bozeman, 2025 . . . . . . . . . . . . . 45
Figure 20. Jobs Forecast, Bozeman and Gallatin County, 2045 . . . . . . . . . . . . . . . . . . . . 48
Figure 21. Population Forecast, Bozeman and Gallatin County, 2045 . . . . . . . . . . . . . . . 48
Notable changes since 2024Q2
Since the 2024 Q2 report, the economic fundamentals in Bozeman and Gallatin
County have not changed; however, there are signs of moderating or slowing
growth in population, jobs, and housing construction.
Signs of Slowing Growth
Population, employment, and housing unit growth in Bozeman and Gallatin County
may be slowing after the rapid and sustained growth between 2010 and 2025.
X The average population growth rate in Bozeman from 2010 through 2025
(estimated) was 3.6% per year. From 2023-2024 Bozeman’s population grew
by 2.7% and by 2.0% from 2024-2025. A drop in in-migration post-pandemic
and job growth may be driving this trend. This is still a relatively strong
growth rate, as demographers consider growth rates above 2.0% per year to
be fast and less than 1.5% per year as slow.
X In 2025, an estimated 840 multihousehold units were built in Bozeman,
growing the supply by 10.4% (to 8,944) between 2024 and 2025. This is
below the 2010-2025 average annual growth rate of 15.7% and less than the
2023-2024 growth of 47.7%.
X Bozeman and Gallatin County continued to see strong job growth through
2024, with 3.7% and 2.5% growth over 2023, respectively. Year end data
for 2025 is not yet available; however, the BLS Current Employment Survey
estimates that the Bozeman MSA lost 3,000 jobs, or a 3.8% reduction in
private employment between August 2024 and August 2025. Significant job
losses were experienced in the leisure and hospitality and state government
sectors.
X The impacts of potential government shutdowns or reductions in the federal
workforce are not yet known but could be significant for this region. Federal
government employment accounts for about 662 jobs in this region, or about
0.8 percent of total employment. In addition, there are 8,369 jobs in state
and local government corresponding to 10.6% of total employment. Slower
growth in Bozeman, combined with high interest rates, may result in slower
new housing construction. In addition, the absorption period for the new
supply of multihousehold units (apartments) may be slower than it has been
historically.
Home Price Moderation in Bozeman
From 2020-2024, the median home price grew by 8.1% per year to $779,000
in 2024. As of July 2025, the median home price is $796,500—an increase of
2.2%. This marks the third consecutive year of home price growth below 2.5%.
Between 2024 and July 2025:
X In Bozeman, the median home price was up 2.2% to $796,500
X In Belgrade, the median home price was down -2.5% to $598,000
X In Greater Manhattan, the median home price was up 7.0% to $803,000
X In the rest of Gallatin County, the median home price was up 7.0% to
$867,000
Economic & Planning Systems, Inc. 1
Notable changes since 2024Q2
While home price appreciation has slowed, the region is still a high-cost
housing market with deep housing affordability challenges. The median home
price in Bozeman is only affordable to people earning $220,164 per year (182%
of AMI or more). It would take a major market correction for home prices to
return to the more attainable levels seen before 2020.
Multihousehold Inventory and Vacancy
The construction of 3,458 new apartments in 2023-2025 was the largest
increase in new multifamily housing construction in Bozeman since these
data were tracked starting in 2010. This has caused an increase in the average
market-wide vacancy rate to about 18.7%. A closer look at the data shows how
this “slug” of new construction skews the vacancy statistics.
X The addition of approximately 1,900 units in 2024 and 2025 increased the
average market-wide vacancy rate from 12.6% in 2024 to 18.7% in 2025.
X Newly constructed apartments that are still in the lease up period have
much higher vacancy rates compared to existing apartments, which strongly
skews the vacancy rate up. The vacancy rate for the approximately 1,900
units built in 2024 and 2025 was 44.2% compared to 9.2% for existing
apartments built before 2024.
X The multihousehold vacancy rate is likely to remain high for 18 to 24 months
as new supply gets absorbed. The current high vacancy rates and large
increase in supply may deter more new construction until the new inventory
is leased up and absorbed by the market. Vacancies may remain elevated if
local job growth and in-migration continues to be at a slower pace than the
past 10 years.
Hotel Room Count Growth
Bozeman had a major shift in the hotel market following the surge in travel
after the pandemic. Prior to 2020, Bozeman added about 20 rooms per year
on average. However, between 2020 and July 2025 there were 688 new hotel
rooms built or 138 per year on average.
X The hotel bed base in Gallatin County continues to grow with 322 rooms
built between 2024 and July 2025. A further 696 rooms are expected to be
built by 2027.
X Since 2020, the economy market accounted for 43.7% of deliveries.
However, 66.7% of rooms under construction will be economy, signaling a
shift towards more economy options in Gallatin County.
X Occupancy rates for hotels are strong at an average of 74.0% in 2024, the
latest year with complete data. High occupancy rates during a period of
growing supply are indicative of a strong hotel market.
2 Bozeman 2025Q2 Economic and Market Update
This report contains data on the economic landscape of Bozeman and Gallatin County,
Montana, focusing on key growth trends, commercial real estate development, and housing
market dynamics. Designed for economic developers, real estate developers, investors,
lenders, and policymakers, the report aims to deliver insights into regional growth patterns,
industry trends, and housing demand and affordability. The purpose is to assist the community
in tracking progress, identifying trends, and recognizing potential challenges. This 2025 Q2
edition is part of an annual series that monitors and updates market conditions within the city
and county.
City Snapshot
Bozeman, home to 61,662 residents (Table 1), is located in Gallatin County (pop. 135,227);
most of the population in Gallatin County is in the Gallatin Valley (Figure 1) which includes
Four Corners and Belgrade. Bozeman is notable for its diverse economy, highly educated
workforce, and high quality of life, a unique blend for a city of its size.
The community is anchored by Montana State University (MSU), a strong research university.
MSU enrolls over 17,000 students and supports over 3,600 faculty and staff. The area has
excellent access to year-round outdoor recreation activities including world-class skiing,
hiking, and fishing sites.
Bozeman is growing rapidly, adding 25,222 residents since 2010 or an average of 1,681 per
year, corresponding to a 3.6 percent annual average growth rate. However, growth may be
slowing slightly. Between 2024 and 2025 population growth was 2.1 percent and housing unit
growth was 1.7 percent, both below long term growth trends from 2010-2025.
Bozeman contains 45.6
percent of the population
and 45.8 percent of housing
units in Gallatin County.
Between 2010 and 2025
Bozeman captured 55.3
percent of population
growth and 57.4 percent
of housing unit growth.
Recently, Bozeman captured
a smaller share of Gallatin
County growth. Between
2024 and 2025, 44.4 percent
of population growth and
32.5 percent of housing unit
growth took place in the city.
1. City Snapshot and Summary
Economic & Planning Systems, Inc. 1
Table 1. Population and Housing Units, 2010-2024
2010-2025
Description 2010 2020 2023 2024 2025 Total Ann. #Ann. %
Total Population
Bozeman 36,440 53,293 58,814 60,425 61,662 25,222 1,681 3.6%
Belgrade 7,281 10,460 11,314 12,060 12,786 5,505 367 3.8%
Manhattan 1,396 2,086 2,167 2,243 2,235 839 56 3.2%
Uninc. Gallatin County 44,541 53,121 56,671 57,713 58,544 14,003 934 1.8%
Gallatin County 89,658 118,960 128,966 132,441 135,227 45,569 3,038 2.8%
Bozeman Yearly % Change ------2.7%2.0%
Housing Units
Bozeman 16,761 23,535 26,189 27,130 27,450 10,689 713 3.3%
Belgrade 3,154 4,339 4,714 5,029 5,363 2,209 147 3.6%
Manhattan 574 872 914 924 918 344 23 3.2%
Uninc. Gallatin County 20,841 24,089 25,678 25,893 26,229 5,388 359 1.5%
Gallatin County 41,330 52,835 57,495 58,976 59,960 18,630 1,242 2.5%
Bozeman Yearly % Change ------3.6%1.2%
Bozeman % of Gallatin County
Population 40.6%44.8%45.6%45.6%45.6%55.3%
Housing Units 40.6%44.5%45.6%46.0%45.8%57.4%
Source: ESRI Business Analyst; Economic & Planning Systems
2 Bozeman 2025Q2 Economic and Market Update
Figure 1. Gallatin Valley Region
Economic & Planning Systems, Inc. 3
Economic Drivers
Higher Education
In 2024, Montana State University (MSU), the state’s land grant institution, enrolled 17,144
students (Table 2) and employed 3,644 faculty and staff. MSU is classified within the Carnegie
Classification of Institutions of Higher Education (Indiana University) as an R1 research
university, one of 187 universities with “very high research activity.” MSU is one of two
Montana universities and one of 19 universities in the Rocky Mountain region to receive this
classification.
Table 2. MSU Enrollment, 2010-2024
2010-2024
MSU Enrollment 2010 2020 2023 2024 Change Ann. #Ann. %
Undergraduate 11,579 14,240 14,885 15,053 3,474 248 1.9%
Graduate 1,986 2,009 2,093 2,091 883 38 2.4%
Total 13,565 16,249 16,978 17,144 5,398 235 1.7%
Source: Montana State University; Economic & Planning Systems
Tourism and Recreation
Bozeman serves as a “gateway community” to some of the premier outdoor recreation areas
in the U.S. In the summer, outdoor enthusiasts come to Bozeman to access the pristine rivers
and streams, Custer Gallatin National Forrest, and the iconic Yellowstone and Glacier National
Parks. In the colder months, the ski resorts Bridger Bowl and Big Sky attract thousands of
domestic and international skiers. Big Sky and the Yellowstone Club draw wealthy visitors
and part-time residents from around the world. In 2024, there were 8,068 jobs in the Arts/
Recreation and Hotel/Restaurant industries, representing 18.8 percent of employment in
Bozeman.
Health Care
Health Care is a key industry in Bozeman, employing 6,388 people in 2024. Anchoring the
sector is Bozeman Health, one of the region’s largest employers. Bozeman Health employed
over 2,800 people in 2024. In addition, the hospital was awarded an “A” grade for safety by
the Leapfrog Hospital Survey and was named a top 100 rural hospital by Chartis, a healthcare
consultant. In October 2025, Bozeman Health and Billings Clinic announced plans to
jointly develop land at the Billings Clinic Bozeman campus, improving health care options
in southwest Montana. Another major healthcare provider, Intermountain Health, added a
second location in Bozeman, bringing more specialty care services to the region. Additionally,
over the past few years, Montana State University has been expanding its educational
healthcare programs. MSU received a $1.9 million grant from the Merck Foundation to expand
cancer treatment centers to rural Montana in March 2025. Additionally, the Mark and Robyn
Jones College of Nursing was the recipient of a $43,685 grant from Blue Cross and Blue Shield
of Montana to support clinical agencies in rural areas.
4 Bozeman 2025Q2 Economic and Market Update
Technology
In 2024–2025, the technology sector is emerging as a transformative economic driver in the
Bozeman, Montana region, anchored by the statewide designation of Headwaters Tech Hub as
a Regional Technology & Innovation Hub by the U.S. Economic Development Administration,
a component of the CHIPS and Science Act of 2022. The Headwaters Tech Hub and the
accompanying $41 million investment builds on Bozeman’s strong existing optics, photonics
and quantum-technology ecosystem, which currently counts over 60 firms and dozens of
research labs in and around the Gallatin Valley. In part, the Headwaters Tech Hub was awarded
to Montana due to the decades of advancement in smart sensors and photonics and optics, as
well as Montana State University’s creation of the MSU Quantum Core in 2025.
Bozeman is home to a technology sector that includes both startups and established
companies across the tech spectrum. Firms such as Zoot Enterprises and Snowflake Inc.
specialize in software development. Aurora and Ascent Vision Technologies are major R&D
and technology manufacturers. Additionally, the quantum, photonics, and optics industry is an
important cluster. Over 25 private quantum companies are located in the city, bolstered by the
presence of MSU which operates eight labs and research centers in support of the photonics
and optics industry. In 2024, Montana received $41 million in funding from the U.S. Economic
Development Administration for the Headwaters Tech Hub. The tech hub is an accelerator for
the commercialization of quantum technology.
Manufacturing
Bozeman has a diverse range of manufacturing companies. Tech companies such as Aurora
specialize in high-tech manufacturing while firms like Simms Fishing, West Paw, and Gibson
Guitar Company engage in consumer product manufacturing. MSU’s Montana Manufacturing
Extension Center (MMEC), located in Bozeman, provides outreach and assistance for
manufacturers across the state.
Retail and Hospitality
Bozeman retailers serve a 50-plus mile trade area. Home to an abundance of retail, services,
art, entertainment, accommodations, and dining businesses, Bozeman is the retail center
of southwest Montana. Downtown Bozeman is a vibrant main street, home to an array
restaurants and nightlife. In 2025, the former Gallatin Valley Mall rebranded as Gallatin
Crossing and completed a $100 million redevelopment project with a mix of retail and medical
uses. Notable tenants include Whole Foods, Lululemon, Arhaus, and Intermountain Health.
Creative Arts
The city has many businesses that provide goods and services based on intellectual property
and individual creativity. These businesses include publishing, film, TV, media, design,
technology, performing arts, and museums and galleries. Notable arts and culture assets
include the Emerson Center for the Arts and Culture, the historic Ellen Theatre, and the
Montana Ballet Company. Additionally, Montana State University offers undergraduate and
graduate programs in Art Education, Art History, Film, Fine Art, Music, Photography, and
Natural History Filmmaking.
Economic & Planning Systems, Inc. 5
Montana State University Innovation Campus
MSUIC is a research support, technology transfer, and entrepreneurial development that,
when completed, will be home to over 500,000 square feet of space. The campus hosts
companies such as Aurora Driver, and Omega Biologicals. MSUIC hosts the only SCIF (Secure
Compartmental Information Facility) in the State of Montana and facilitates classified research
for both government agencies and the private sector. The EngineWorks Building is a state-
of-the-art office and R&D space on the campus. Notable tenants include Reveal Technology,
Resilient Computing, MSU QCore, and Montana Photonics and Quantum Alliance.
Big Sky Science Center
Proposed for Montana State University’s Innovation Campus, the Big Sky Science Center
features a state-of-the-art building dedicated to specialized laboratory spaces.The building
is proposed for approximately 60,000 square feet of lab, R&D, and light manufacturing space
spread out over two to three floors. The facility design includes HAZMAT control areas,
emergency backup power, a hydraulic loading bay, and redundant, high-capacity fiber-optic
connectivity.
Aurora Building
1101 Invention Drive is a 78,000 Class A R&D space completed in 2024. Located on Montana
State University’s Innovation Campus, the building hosts Aurora Innovation, a self-driving
long-haul logistics technology company. The facility includes state-of-the-art testing, R&D
labs, and office space. The facility is located within minutes of the Montana State University
main campus.
6 Bozeman 2025Q2 Economic and Market Update
Bozeman Yellowstone International Airport
In 2024, Bozeman Yellowstone International Airport (BZN) served 2,642,707 passengers, a 7.2
percent increase over 2023. BZN is the busiest airport in Montana, accounting for 42.0 percent
of all airline passengers in 2024. The airport serves 26 non-stop destinations operated by eight
airlines, including all three U.S. legacy carriers.
BZN plays a significant role in supporting the region’s tourism and recreation economy,
connecting travelers to outdoor recreation, guide companies, and the Big Sky and Bridger
Bowl ski areas. The airport also sees extensive use by business travelers. In 2024, Yellowstone
National Park alone received 4.7 million visitors, the second highest total since 1904. Many of
these visitors travel through BZN and Bozeman in route to Yellowstone, spending money at
local hotels, restaurants, and retailers.
Figure 2. Bozeman Yellowstone International Airport Destinations
Economic & Planning Systems, Inc. 7
Comparison Cities
Bozeman can be benchmarked against other western cities with proximity to outdoor recreation, rapid
population growth, and a high quality of life such as Missoula, MT; Fort Collins, CO; Boulder, CO; Bend,
OR; and Billings, MT (Table 3).
In 2024, Bozeman had the highest median household income ($113,382) relative to the Montana
comparison cities for renters ($63,359) and homeowners ($79,903). Among all comparison cities,
Bozeman had the lowest median household income, which is expected given the higher populations and
larger economies of Fort Collins, Boulder, and Bend.
Each peer city hosts a major university and thus the students have an outsized impact on city
demographics. In Bozeman, students make up 27.8 percent of the population, a percentage most similar
to Boulder. Fort Collins, the largest of the comparison cities, has a student population accounting for 19.8
percent of the city. The large student population has an impact on the rental housing supply and skews
median household income down.
Table 3. Peer City Summary
Description Bozeman MT Billings MT Missoula MT Fort Collins CO Boulder CO Bend OR
Demographics
Population 61,662 124,360 77,980 173,039 109,191 109,500
Median Age 29.5 39.4 36.1 32.9 31.0 40.9
% Renter Households 56.5%37.0%52.0%49.6%55.8%37.6%
Median Household Income
Owner $113,382 $90,781 $98,194 $125,595 $150,211 $109,136
Renter $63,359 $44,178 $44,956 $55,149 $47,486 $66,155
All Households $79,903 $71,855 $65,329 $83,598 $85,364 $88,792
Employment
Jobs 45,538 75,518 57,900 102,996 101,355 65,607
Top 3 Sectors
#1 Health Care Health Care Health Care Health Care Education Health Care
#2 Retail Prof. and Tech.
Svcs.
Retail Education Prof. and Tech.
Svcs.
Retail
#3 Education Retail Hotel/
Restaurant
Retail Health Care Hotel/
Restaurant
Top 3 Growth Sectors (‘19-’25)[1]
#1 Hotel/Restaurant Manufacturing Prof. and Tech. Svcs.Arts/Rec.Wholesale Trade Ag./Forestry
#2 Construction Admin./Waste
Mgmt.
Public
Administration
Transportation/
Warehousing
Prof. and Tech.
Svcs.
Transportation/
Warehousing
#3 Finance Prof. and Tech.
Svcs.
Construction Wholesale
Trade
Manufacturing Health Care
Higher Education
Major College/University Montana State University Montana State University Billings
University of Montana Colorado State University University of Colorado Oregon State University - CascadesEnrollment (Fall 2024)17,144 4,129 10,811 34,218 38,799 1,296
% of City Population 27.8%3.3%13.9%19.8%35.5%1.2%
[1] Percent increase 2019-2024, min. 500 jobs
Source: ACS 5-Year Estimates, ESRI Business Analyst, Jobs EQ; Economic & Planning Systems
8 Bozeman 2025Q2 Economic and Market Update
Economic Base
Bozeman and Gallatin County have a diverse economy driven by key industries that
distinguish it from other midsize cities. While the Hotel/Restaurant and Retail Trade
industries are two of the largest employers, Bozeman and Gallatin County have large
Construction, Health Care, Education, Professional Services, Manufacturing, and Business
Support (Admin, Waste, and Mgt.) industries (Figure 3).
According to JobsEQ, a labor market data resource, Bozeman had 42,983 covered jobs
and Gallatin County had 73,179 covered jobs in 2024 (wage and salary jobs “covered” by
unemployment insurance). Bozeman is the largest employment center in Gallatin County,
accounting for 58.7 percent of jobs.
Figure 3. Covered Wage and Salary Employment, Bozeman and Gallatin County, 2024
2. Economy
Economic & Planning Systems, Inc. 9
The jobs data in this report comes from three data sources: JobsEQ, the Current
Employment Statistics (CES) program from the Federal Bureau of Labor Statistics
(BLS), and the Local Area Unemployment Statistics (LAUS) program also published by
the BLS.
JOBSEQ
JobsEQ is a labor market analytics platform that consolidates employment data from
multiple public sources to estimate total employment by area, industry, and time
period. The primary data source JobsEQ uses is the Quarterly Census of Employment
and Wages (QCEW). QCEW is a Bureau of Labor Statistics (BLS) program that collects
employment and wage data for workers covered by state unemployment insurance
(representing approximately 97 percent of workers). QCEW data is place of work-based,
meaning workers are assigned to a geographic location (town, county, state, etc.) based
on where they work rather than where they live. Data is published quarterly within six
months after the end of each reported quarter. QCEW data excludes self-employed
workers and double-counts multiple job holders. Due to the breadth and accuracy of
coverage, QCEW is considered the “gold standard” for estimating employment.
CES
The CES program is a monthly survey conducted by the Bureau of Labor Statistics (BLS).
Like QCEW, the CES program produces estimates of employment by area, industry, and
time period based on place of work, however the methods and time periods differ. The
CES employment estimate is based on a survey of approximately 121,000 businesses
representing 631,000 worksites throughout the United States. CES coverage excludes
the self-employed, farm workers, and military personnel.
The survey data generated by the CES program is used to generate an estimate of
employment for a given area, industry, and time period. Data is published monthly, two
months after the close of the reference month. Data is published more frequently than
QCEW, however the estimates are less accurate (especially for small geographies) due
to the limited survey sample size.
LAUS
The LAUS program produces monthly estimates of the civilian labor force, employed
and unemployed people, and the unemployment rate by geography. LAUS data is
driven by employment measures from the Current Population Survey (CPS) and data
from a variety of other sources used to produce the sub-state estimates for employed
and unemployed people. Unlike QCEW and CES, the LAUS program does not publish
estimates of industry employment and is place of residence, not place of work based.
LAUS data is released monthly, two months after the end of the reference month.
ABOUT JOBS DATA
10 Bozeman 2025Q2 Economic and Market Update
The largest employers in Bozeman include Montana State University and Bozeman Health.
The Education and Health Care industries employ 5,570 and 6,388 people, respectively,
making them top industries in the city. Large education and healthcare sectors provide
economic stability and strong wages. Of the top 20 employers in Gallatin County, 12 are
located in Bozeman.
GALLATIN COUNTY TOP EMPLOYERS, 2024
EMPLOYER INDUSTRY EMPLOYMENT RANGE
Montana State University Education 1000 and over employees
Big Sky Resort LLC Arts/Rec.1000 and over employees
Bozeman Health Deaconess Hospital Health Care 1000 and over employees
Yellowstone Club Arts/Rec.1000 and over employees
Bridger Bowl Inc Arts/Rec.500-999 employees
Town Pump Inc Hotel/Restaurant 500-999 employees
Bozeman Health Medical Group Health Care 250-499 employees
Costco Retail Trade 250-499 employees
Kenyon Noble Lumber CO Retail Trade 250-499 employees
Oracle America Inc Information 250-499 employees
Ranch & Home Supply LLC Retail Trade 250-499 employees
Ressler Motor Company Retail Trade 250-499 employees
Town & Country Foods Inc Retail Trade 250-499 employees
Walmart Retail Trade 250-499 employees
Williams Plumbing & Heating Inc Construction 250-499 employees
Albertsons Retail Trade 100-249 employees
Billings Clinic Health Care 100-249 employees
Bozeman Deaconess Health Services Health Care 100-249 employees
Gibson Brands Inc Manufacturing 100-249 employees
Zoot Enterprises Information 100-249 employees
Source: Montana Department of Labor and Industry, Economic & Planning Systems
Economic & Planning Systems, Inc. 11
Job Trends
In 2024, Gallatin County had 73,179 covered jobs and Bozeman had 42,983, constituting 58.7
percent of employment in the county (Table 4). Since 2019, Gallatin County added 12,591
jobs and Bozeman added 5,582. This corresponds to an annual average increase of 2,158 and
1,116, or an annual average growth rate of 3.8 percent and 2.8 percent, respectively. Between
2023 and 2024, jobs in Bozeman grew by 3.7 percent, or 1,531 jobs. This is 0.9 percentage
points above the 2019-2024 annual average growth rate.
Table 4. Total Employment, 2019-2024
2019-2024
Employment 2019 2020 2021 2022 2023 2024 Change Ann. #Ann. %
Bozeman 37,401 35,746 37,889 39,257 41,452 42,983 5,582 1,116 2.8%
Yearly % Change ---4.4%6.0%3.6%5.6%3.7%14.9%
Gallatin County 60,588 59,024 63,605 66,926 70,682 73,179 12,591 2,518 3.8%
Yearly % Change ---2.6%7.8%5.2%5.6%3.5%20.8%
Bozeman % of G.C.61.7%60.6%59.6%58.7%58.6%58.7%44.3%
Source: Jobs EQ; Economic & Planning Systems
Employment growth in Bozeman and Gallatin County was driven by growth in the Hotel/
Restaurant, Construction, Health Care, Retail Trade, and Professional Services industries
(Figure 4). These five industries contributed to 85.0 percent of employment growth in
Bozeman and 69.2 percent of growth in Gallatin County.
Between 2019 and 2024, only four industries lost employment in Bozeman: Arts and
Recreation (-233), Information (-31), Manufacturing (-31), and Transportation (-86). Of these,
only the Arts and Recreation industry lost more than 200 employees. The industries that lost
employment in Gallatin County over the same period were Information, Manufacturing, and
Transportation.
12 Bozeman 2025Q2 Economic and Market Update
Figure 4. Private Employment Trends, Bozeman and Gallatin County, 2019-2024
3,293
1,912
1,592
1,073
843
731
576
506
367
347
338
313
293
264
162
76
22
1
-31
-31
-56
1,990
679
1,094
495
486
-233
117
104
274
267
222
217
44
9
74
61
10
13
-125
-131
-86
-250 750 1,750 2,750 3,750
Hotel/Resturant
Construction
Health Care
Retail Trade
Prof. & Tech. Services
Arts/Rec.
Admin/Waste Management
Wholesale Trade
Other
Finance and Insurance
Public Administration
Education
Ag./Forest/Hunting
Real Estate
Unclassified
Management
Utilities
Mining/Oil
Information
Manufacturing
Transportation
Change in Jobs
Gallatin County
Bozeman
Source: Jobs EQ; Economic & Planning Systems
Z:\Shared\Projects\DEN\233073-Bozeman MT 2025Q2 Market Update\Data\[233073 -Economy 6-16-2025.xlsx]T -
Economic & Planning Systems, Inc. 13
Unemployment Rate
Unemployment rates in Bozeman and Gallatin County have typically been in the 2-3 percent
range, which is very low unemployment (Figure 5). As a result of the COVID-19 pandemic,
unemployment rose in 2020, but fell as the labor market recovered. Shortly following the
pandemic, the unemployment rate continued to fall, reaching a low point of 1.8 percent in
Bozeman and 2.0 percent in Gallatin County in 2022. In the 2.5 years since, the unemployment
rate has climbed slightly to 2.5 percent and 2.3 percent in the city and county, respectively. The
consistently low unemployment rates reflect a tight labor market and has led to strong wage
growth as employers compete for a limited supply of workers.
Figure 5. Unemployment Rate, 2010-August 2025
14 Bozeman 2025Q2 Economic and Market Update
Wages
In 2024, the average annual wage in Gallatin County was $64,698 (Table 5). The highest
earnings were in the Professional Services industry, which paid on average $119,113 per year.
The lowest paying industry was Arts and Recreation with an annual average wage of $32,225.
Between 2019 and 2024, wages in Gallatin County grew at an annual rate of 6.9 percent.
Over the same period, inflation in the mountain west region was 31.0 percent, or 6.2 percent
annually, meaning that wage growth exceeded inflation and real incomes rose.
The Hotel/Restaurant, Construction, Health Care, Retail Trade, Professional Services, and Art
and Recreation industries added the most jobs between 2019 and 2024. These six industries
added 9,444 jobs, accounting for 75.0 percent of countywide employmentgrowth (Table 5). In
addition to a growing number of jobs, these industries experienced strong wage growth. The
average annual wage for the Hotel/Restaurant industry grew by 78.4 percent, or 12.3 percent
annually. Professional Services, the highest paying industry in 2024, saw 58.2 percent wage
growth, or 9.6 percent annually, over the same period. These trends highlight the economic
dynamics of Gallatin County as the services sector grows and diversifies as the region expands.
Table 5. Job and Wage Growth, Top Sectors, Gallatin County, 2019-2024
2019-2024 Job Growth 2019 Avg. Ann. Wage 2024 Avg. Ann. Wage
Avg. Ann. Wage Growth Description
Total - All Industries 12,591 $46,259 $64,698 6.9%
Hotel/ Restaurant 3,293 $22,657 $40,411 12.3%
Construction 1,912 $56,768 $79,092 6.9%
Health Care 1,592 $52,060 $63,192 4.0%
Retail 1,073 $34,415 $47,026 6.4%
Prof. & Tech. Services 843 $75,285 $119,113 9.6%
Arts/ Recreation 731 $24,898 $32,225 5.3%
Source: Jobs EQ; Economic & Planning Systems
Economic & Planning Systems, Inc. 15
Of the 3,726 jobs added in Bozeman between 2022 and 2024, 2,336, or 62.7 percent, were
jobs that pay wages in the lowest wage quartile ($0 - $57,749), or the bottom 25 percent of
earners (Figure 6). The first wage quartile includes the Accommodations and Food Service
industry, the fastest growing industry in Bozeman, accounting for 39.6 percent of employment
growth. This industry pays an annual average wage of $40,393, the second lowest in Bozeman.
The first quartile also includes employment in the Arts and Recreation, Agriculture, Retail
Trade, and Education industries.
Employment growth in the first and lowest wage quartile is due to growth in Bozeman’s
hospitality industry, which drives demand for low-paying service jobs. Recent hotel
development with plans for continued expansion indicates the trend is likely to continue.
The second quartile, representing the next 25 percent of wage earners with annual salaries
between $57,749 and $69,573, accounted for 13 percent of job growth. This quartile includes
jobs in the Manufacturing, Real Estate, Administrative Support, and Health Care industries.
The third quartile, covering employees with salaries ranging from $69,573 to $89,141,
contributed to 20 percent of employment growth. Employees in the Construction, Wholesale
Trade, Management, and Public Administration sectors are likely to have annual earnings in this
quartile. The fourth quartile includes the highest wage earners. Workers earning over $89,141
are included in this bracket. This quartile added the fewest jobs, 5 percent of the total. Typical
roles included earners in the Utilities, Information, Finance, and Professional Services industries.
Figure 6. Change in Employment by Wage Quartile and 1-Person AMI, Bozeman, 2022-2024
16 Bozeman 2025Q2 Economic and Market Update
Workforce
Bozeman has a highly educated workforce. Among the population 25 years or older, 63.7
percent have a bachelor’s degree or higher (Table 6). Relative to the peer cities, only Boulder
has a more highly educated population. The presence of MSU and the high concentration
of skilled jobs, like those found in the Information, Professional Services, and Health Care
industries, are drivers of an educated workforce. Places with a high quality of life are also able
to attract skilled labor as highly educated workers have more choices and flexibility in where
they choose to work and live.
Table 6. Population 25+ by Educational Attainment, Bozeman, 2025
Education Level
Bozeman
Billings
Boulder
Bend
Fort Collins
Missoula
Population 25+37,662 86,683 67,526 78,962 112,205 54,278
High School or Less, No Diploma 3.0%4.2%2.4%3.4%2.1%3.2%
High School Graduate or Equivalent 13.2%29.6%5.7%15.3%13.4%18.6%
Some College/No Degree 13.8%19.0%8.6%17.3%14.3%16.8%
Associate’s Degree 6.3%10.5%4.2%10.7%8.6%10.0%
Bachelor’s Degree 38.6%24.7%38.1%33.9%34.9%31.5%
Grad/Professional Degree 25.1%12.1%40.9%19.4%26.7%20.0%
Total 100.0%100.0%100.0%100.0%100.0%100.0%
Bachelor’s Degree of Higher 63.7%36.8%79.1%53.3%61.6%51.4%
Note: Color scale correspond to row values.
Source: ESRI Business Analyst; Economic & Planning Systems
Economic & Planning Systems, Inc. 17
Government Employment
In 2024, there were 9,031 government employees in Gallatin County across federal, state,
and local government, counting for 11.4 percent of total employment (Table 7). Federal
government employment primarily consists of jobs in the Department of Interior (DOI),
including the National Parks Service, Bureau of Land Management, Fish and Wildlife Service,
and related agencies. State government employment is concentrated in the education industry
due to the impact of MSU. Local government employees are primarily in the Education and
Public Administration industries.
Government employment is covered by QCEW with the exception of elected officials,
members of the armed forces, contract workers, and temporary workers. Federal government
employment in Gallatin County is likely undercounted as many DOI workers are employed on
a temporary or contract basis. The impacts of the October 2025 government shutdown and
recent cuts to the federal workforce are not yet known but are expected to negatively impact
federal and state government employment.
Table 7. Government Employment, 2019-2024
2019-2024
Employment 2019 2020 2021 2022 2023 2024 Change Ann. #Ann. %
Bozeman
Federal Government 305 293 275 270 290 337 32 6 2.0%
State Government 4,146 3,979 3,845 4,059 4,192 4,348 202 40 1.0%
Local Government 1,983 1,938 1,957 2,007 2,063 2,112 129 26 1.3%
Total 6,435 6,210 6,077 6,337 6,544 6,798 362 72 1.1%
Gallatin County
Federal Government 570 617 590 555 581 662 92 18 3.0%
State Government 4,641 4,453 4,312 4,543 4,691 4,867 225 45 1.0%
Local Government 3,325 3,282 3,301 3,341 3,439 3,502 177 35 1.0%
Total 8,537 8,351 8,204 8,439 8,712 9,031 494 99 1.1%
Pct. of Total Employment
Bozeman 16.1%16.3%15.0%15.2%14.9%14.9%
Gallatin County 13.0%13.0%11.9%11.7%11.4%11.4%
Source: Jobs EQ; Economic & Planning Systems
18 Bozeman 2025Q2 Economic and Market Update
This chapter provides an overview of the commercial real estate trends in the office,
industrial, and retail markets. This analysis includes a summary of the total inventory,
rental rates, vacancy rates, and deliveries. Commercial real estate data comes from CoStar,
a subscription real estate database and market information service. CoStar relies on broker-
reported data and as a result, it frequently updates its information, and historical data may
change as data are updated.
Office Market Trends
Through 2025 Q3, Gallatin County had 4.3 million square feet of office space, 3.4 million of
which was in Bozeman. From 2020 to 2025 Q3, Gallatin County added approximately 483,959
square feet of office space, averaging 96,792 square feet annually. Over the same period,
Bozeman added 365,497 square feet, averaging 73,099 annually (Table 8). Between 2024 and
2025 Q3, Bozeman added 85,000 square feet of office space. This corresponds to 2.0 percent
growth, in line with recent growth rates. Bozeman is the hub for office space in Gallatin County
with 79.4 percent of square feet within the city. Since 2020, Bozeman has captured 75.5
percent of inventory growth.
As of 2025 Q3, average rent per square foot in Gallatin County and Bozeman was $25.71 and
$26.50, respectively. Since 2020, average rent per square foot has risen by $4.89 in Bozeman
and $4.73 in Gallatin County. Year over year, rent per square foot rose by 1.7 percent in
Bozeman, below the recent trend. Since 2020, office vacancy rates have remained below 4.9
percent in Bozeman and 5.9 percent in Gallatin County. Vacancy rates in Bozeman and Gallatin
County have increased since reaching lows in 2022, more than doubling in the three years
since. However, they still remain low. Increasing rental rates and low vacancy rates indicate
strong demand for office space and a growing commercial real estate market.
3. Commercial Real Estate
Economic & Planning Systems, Inc. 19
Table 8. Office Market Summary , 2020-2025 Q3
2020-2025 Q3
Description 2020 2021 2022 2023 2024 2025 Q3 Total Ann. #Ann. %
Inventory (Sq. Ft.)
Bozeman 3,038,994 3,066,863 3,078,863 3,094,473 3,319,491 3,404,491 365,497 73,099 2.3%
Gallatin County Total 3,801,987 3,829,856 3,843,246 3,882,856 4,185,874 4,285,946 483,959 96,792 2.4%
Bozeman % of Gallatin County 79.9%80.1%80.1%79.7%79.3%79.4%75.5%
Bozeman YoY % Change --0.9%0.4%0.5%7.3%2.6%12.0%
Avg. Rent per Sq. Ft.
Bozeman $21.61 $21.63 $22.92 $25.20 $26.06 $26.50 $4.89 --4.2%
Gallatin County Overall $20.98 $20.97 $22.30 $24.74 $25.64 $25.71 $4.73 --4.2%
Bozeman YoY % Change --0.1%6.0%9.9%3.4%1.7%22.6%
Vacancy Rate
Bozeman 2.9%1.7%1.8%3.5%3.4%4.9%
Gallatin County Overall 2.6%1.5%1.6%3.2%2.9%5.9%
Bozeman YoY Difference ---1.2%0.1%1.7%-0.1%1.5%2.0%
Source: CoStar; Economic & Planning Systems
From 2010 to 2025 Q3, 72.1 percent of new office space was delivered in Bozeman (Figure 7).
Since 2020, 78.1 percent of office space was delivered within city limits. The concentration of
new office space in Bozeman highlights the city’s role as the Gallatin Valley region’s primary
economic center.
Figure 7. Office Deliveries, 2010-2025 Q3
20 Bozeman 2025Q2 Economic and Market Update
Notable Projects
Notable office projects built since 2024 are listed below in Table 9. New development is being
built in Bozeman and Four Corners with a significant portion of recent deliveries occurring at
the MSU Innovation Campus.
Table 9. Recent Office Development, Gallatin County
Address/ Name City Year Built RBA
Notable Deliveries
161 Haley Springs Rd Four Corners 2025 15,072
EngineWorks Bozeman 2025 85,000
4351 Fallon St Bozeman 2024 6,000
580 Zoot Enterprises Ln Four Corners 2024 25,080
Barnard Construction Bozeman 2025 --
Under Construction
Kiln Bozeman Bozeman 2025 30,621
Source: CoStar; Economic & Planning Systems
EngineWorks – Opened in 2025, EngineWorks will provide 80,000 square feet of
customizable office space. As part of MSU’s Innovation Campus, the facility offers access to
shared amenities including conference rooms, event spaces, outdoor areas, and recreation
space. As of 2025 Q3, three tenants lease space: Resilient Computing, a computer technology
company, Reveal, a defense technology firm, and QCORE, the MSU quantum technology
facility.
Kiln Bozeman – Kiln Bozeman is a coworking space that opened in late 2025. The location
features over 30,000 square feet of office space and offers leasable spaces between 150 and
900 square feet in size. In addition to coworking and office space, Kiln provides tenants access
to shared meeting rooms, studios, and relaxation rooms. Kiln is located at the old Town and
County Foods building that sold in December of 2023.
Economic & Planning Systems, Inc. 21
Industrial/Flex Market
As of 2025 Q3, Gallatin County had 5.1 million square feet of industrial and flex space, 1.2
million square feet (23.4 percent) of which were in Bozeman (Table 10). Between 2020 and
2025 Q3, Gallatin County added 685,701 square feet of industrial space for an average of
137,140 square feet per year, corresponding to a 2.9 annual average growth rate. Over the
same period, Bozeman’s inventory grew by 166,494 square feet for an annual average of
33,299 and an annual average growth rate of 3.0 percent, capturing 24.3 percent of Gallatin
County growth. Lower land costs outside Bozeman drove industrial growth outside city limits.
However, Bozeman is still a key location for industrial development in the county. Between
2024 and 2025 Q3, Bozeman has gained no additional industrial square footage.
The vacancy rate for industrial and flex space in Gallatin County was 4.3 percent, compared to
0.4 percent in Bozeman. Vacancy rates are lower in Bozeman compared to Gallatin County and
have consistently remained below 3.0 percent since 2020. Rent per square foot was $14.25
in Gallatin County, having risen by $1.52 since 2020. Recent industrial and flex rent was not
available for Bozeman due to reporting inconsistencies in the source data. Rent in Bozeman
stood at $15.81 per square foot in 2023 (the last year with reliable data), approximately $1.30
higher than Gallatin County at that time.
22 Bozeman 2025Q2 Economic and Market Update
Table 10. Industrial/Flex Summary, 2020-2025 Q3
2025 Q3
2020-2025 Q3
Description 2020 2021 2022 2023 2024 Total Ann. #Ann. %
Inventory (Sq. Ft.)
Bozeman
Industrial 850,441 850,441 850,441 850,441 928,441 928,441 78,000 15,600 1.8%
Flex 178,255 178,255 242,255 257,255 264,255 266,749 88,494 17,699 8.4%
Total 1,028,696 1,028,696 1,092,696 1,107,696 1,192,696 1,195,190 166,494 33,299 3.0%
Gallatin County
Industrial 3,697,787 3,776,163 3,791,163 4,020,551 4,146,501 4,255,077 557,290 111,458 2.8%
Flex 732,095 732,095 796,095 847,054 858,012 860,506 128,411 25,682 3.3%
Total 4,429,882 4,508,258 4,587,258 4,867,605 5,004,513 5,115,583 685,701 137,140 2.9%
Bozeman % of Gallatin County 23.2%22.8%23.8%22.8%23.8%23.4%24.3%
Bozeman YoY % Change -2.7%0.0%6.2%1.4%7.7%0.2%16.2%
Gross Rent per Sq. Ft.
Bozeman
Industrial $12.64 $12.15 $15.06 $15.09 ---------
Flex $19.95 $25.83 $24.50 $16.12 ---$24.06 $4.11
Total $17.44 $22.32 $21.14 $15.81 ---$24.06 $6.62
Gallatin County
Industrial $10.73 $11.28 $13.88 $14.14 $13.06 $13.77 $3.05
Flex $17.11 $22.14 $22.41 $15.22 $12.88 $15.25 -$1.86
Total $12.73 $14.05 $16.91 $14.50 $13.04 $14.25 $1.52
Bozeman YoY % Change 44.9%28.0%-5.3%-25.2%------
Vacancy Rate
Bozeman
Industrial 0.3%0.0%0.5%0.9%1.1%0.4%
Flex 9.3%0.5%11.1%3.4%0.0%0.2%
Total 1.9%0.1%2.9%1.4%0.8%0.4%
Gallatin County
Industrial 0.8%0.6%0.2%1.2%2.7%3.5%
Flex 4.0%0.6%3.9%2.4%1.6%8.3%
Total 1.3%0.6%0.9%1.4%2.5%4.3%
Bozeman YoY % Difference 0.2%-0.3%0.5%0.4%0.2%-0.7%0.1%
Source: CoStar; Economic & Planning Systems
Economic & Planning Systems, Inc. 23
Between 2010 and 2025 Q3, 1.54 million square feet of industrial/flex space has been
delivered in Gallatin County (Figure 8). Of that, 770,358 square feet, or 49.9 percent, is
located within Bozeman city limits. Historically, most industrial development in Gallatin
County outside of Bozeman has been concentrated in Belgrade and Four Corners. However,
the recent delivery of 1101 Invention Drive and construction of the Big Sky Science Center
in 2027, both on MSU Innovation Campus property, will add additional square footage to the
Bozeman market (Table 11).
Figure 8. Industrial/Flex Deliveries, 2010-2025 Q3
24 Bozeman 2025Q2 Economic and Market Update
Table 11. Recent Industrial/Flex Developments, Gallatin County
Description City
Year Built/
Expected RBA Avg. Rent/ SF
Notable Deliveries
The Foundry Belgrade 2025 53,000 $476
1102 Jackrabbit Ln Belgrade 2025 48,000 $314.52-325.00
205 Fletching Way Belgrade 2025 4,850 $20
120 Donjo Belgrade 2024 9,847 $8-10
121 Donjo Ave Belgrade 2024 2,840 18
211 Town Center Unit 1B Big Sky 2024 1,539 $8-10
1101 Invention Dr Bozeman 2024 78,000 $13-16
Under Construction
Big Sky Science Center Bozeman 2027 204,400 --
1580 Bobcat Dr Four Corners 2025 10,590 $15
Source: CoStar; Economic & Planning Systems
Notable Projects
Big Sky Science Center – Located just north of Montana State University’s Innovation
Campus, the development (expected to be completed in 2027), features two buildings
dedicated to laboratory and R&D space. The first building will have 94,800 square feet of lab,
R&D, and light manufacturing space spread out over three floors. The second building will
include 109,600 square feet of space for advanced R&D and light manufacturing over four
floors. The facility will include HAZMAT control areas, emergency backup power, a hydraulic
loading bay, and fiber optic internet. Nearby tenants include the EngineWorks building,
completed in 2025, MSU’s Quantum Core space, Aurora Innovation, and the MSU Applied
Research Lab.
Aurora Building – 1101 Invention Drive is a 78,000 class A R&D space completed in 2024.
Located in Montana State University’s Innovation Campus, the building hosts Aurora
Innovation, a self-driving technology company. The facility includes state of the art testing,
R&D labs, and office space. The facility is located within two miles of Montana State University.
Economic & Planning Systems, Inc. 25
Retail Market
As of 2025 Q3, Gallatin County has 6.7 million square feet of retail space, 4.7 million (70.2
percent) of which is located within Bozeman (Table 12). An increasing share of Gallatin County
retail space is being developed outside of Bozeman. Between 2020 and 2025 Q3, 42.2 percent
of additional retail space was built in Bozeman. Between 2024 and 2025 Q3, retail square
footage remained largely unchanged. After a long period of flat rents, rents increased by 19
percent from 2024 to 2025 Q3 to $23.71 per square foot, compared to $19.11 in Gallatin
County. Since 2020, rents in Bozeman have grown by $3.37 in Bozeman compared to a slight
drop of $1.11 in Gallatin County.
The retail vacancy rate in Gallatin County and Bozeman was 1.8 percent and 2.1 percent as
of 2025 Q3, respectively. Bozeman saw a full percentage increase in vacancy rate between
2024 and 2025 Q3 while Gallatin County saw a more modest increase of 0.4 percent. The
combination of low vacancy rates and slow growth in retail space suggests that the retail
market has stabilized in Bozeman. Future retail development is likely to be built to suit and not
speculative due to the effects of a changing retail market and e-commerce competition.
Table 12. Retail Summary, 2020-2025 Q3
2020-2025 Q3
Description 2020 2021 2022 2023 2024 2025 Q3 Total Ann. #Ann. %
Inventory (Sq. Ft.)
Bozeman 4,540,908 4,536,908 4,601,839 4,623,839 4,679,947 4,685,272 144,364 28,873 0.6%
Gallatin County Total 6,314,130 6,310,130 6,375,061 6,460,316 6,650,559 6,655,884 341,754 68,351 1.1%
Bozeman % of Gallatin County 71.9%71.9%72.2%71.6%70.4%70.4%42.2%
Bozeman YoY % Change 1.2%-0.1%1.4%0.5%1.2%0.1%3.4%
Avg. Rent per Sq. Ft.
Bozeman $20.35 $21.18 $21.32 $20.01 $19.97 $23.71 $3.37 --3.1%
Gallatin County Overall $20.23 $21.38 $21.23 $19.83 $20.28 $19.11 -$1.11 ---1.1%
Bozeman YoY % Change -7.6%4.1%0.7%-6.1%-0.2%18.8%19.2%
Vacancy Rate
Bozeman 1.3%1.0%1.3%1.8%1.1%2.1%
Gallatin County Overall 1.4%0.9%1.0%1.4%1.4%1.8%
Bozeman YoY Difference -0.5%-0.3%0.3%0.5%-0.7%1.0%0.4%
Source: CoStar; Economic & Planning Systems
26 Bozeman 2025Q2 Economic and Market Update
Between 2010 and 2025 Q3, 847,392 square feet of retail space was delivered in Gallatin
County, corresponding to 58,293 square feet per year. Of that, 648,187, or 74.1 percent was
within Bozeman city limits, or 43,212 square feet per year. Approximately 240,000 square feet
of this was in 2011 when two large car dealerships were built on S Cottonwood in Bozeman.
Since 2020, retail construction has been increasingly concentrated in the areas of Gallatin
County outside of Bozeman. Four Corners, Belgrade, and other areas of unincorporated
Gallatin County are capturing a higher share of retail development. The growth of the
surrounding region is creating more retail demand in Belgrade and Four Corners.
Figure 9. Retail Deliveries, 2010-2025 Q3
Bozeman’s retail inventory is comprised of a wide variety of national grocery store chains,
large retailers, and small businesses. There are 10 full-service supermarkets in Bozeman
(including the Walmart Supercenter) as well as several smaller specialty food stores and
independent grocers such as the Community Food Co-op. Bozeman also has several national
general merchandise and home improvement anchor retailers including Costco, Target, Home
Depot, Lowe’s, Kohl’s, Best Buy, and Macy’s.
Economic & Planning Systems, Inc. 27
BOZEMAN RETAIL INVENTORY
DESCRIPTION STORE TYPE AVG. SQ. FT.DESCRIPTION STORE TYPE AVG. SQ. FT.
Supermarkets and Grocery Stores Shoppers’ Goods
WinCo Foods 75,000 Walmart 200,550
Rosauers Foods & Drug Center 60,045 Costco Wholesale 114,512
Safeway 56,117 Target 107,649
Smith's Grocery Pickup and Delivery 57,000 Kohl's 57,045
Albertsons 53,746 Sportsman's Warehouse 45,860
Whole Foods Market 31,718 Conlin's Furniture 44,100
Town and Country Foods 26,449 Hobby Lobby 41,796
Town and Country Foods 20,404 Bob Ward's Sports & Outdoors 30,495
Building Material and Garden Ross Dress For Less 30,130
Lowe’s 99,440 REI 25,177
The Home Depot 95,337 Barnes & Noble 25,000
Kenyon Noble Lumber and Hardware 57,375 Staples 22,194
Murdoch's Ranch & Home Supply 48,904 T.J. Maxx 20,388
Ashley HomeStore 30,800 Michaels 20,372
Ace Hardware 24,302 Universal Athletic 20,000
Commercial Metals 24,275
Harbor Freight Tools 19,582
Source: CoStar; Economic & Planning Systems
Notable Projects and Inventory
1185 Fremont Street – Located in unincorporated Gallatin County between Four Corners
and Belgrade off of Jackrabbit Frontage Road, 1185 Fremont Street is a retail property that
includes 28 commercial units. The building is set to be fully constructed in March of 2026 and
is currently 93.9 percent leased. Currently, 24 units are occupied representing a mix of leisure,
medical, and restaurant including D1 Training, Stepping Stones Preschool, and Proud Rooster
Texas BBQ.
Gallatin Crossing – Gallatin Crossing is a modern, mixed-use retail redevelopment of Gallatin
Valley Mall. The $50 million dollar redesign is led by the Billings, MT based Corning Companies
and includes open-air retail, medical offices, and a pedestrian plaza. In fall 2025, an additional
20,000 square feet of retail space opened. Notable new tenants include upscale brands such as
Lululemon, Sephora, Pandora, and Arhaus.
Table 13. Recent Retail Projects, Gallatin County
Property Name/ Address City
Year Built/
Expected
Buildable
Area Avg. Rent/ SF
Under Construction
1185 Fremont St Uninc. Gallatin County 2026 63,000 $17.00
Gallatin Crossing Bozeman 2025 20,000 $25.40 - 29.94 (Est.)
Source: CoStar; Economic & Planning Systems
28 Bozeman 2025Q2 Economic and Market Update
This chapter provides an overview of the hotel market in Bozeman and Gallatin County. It
summarizes market trends and conditions including key metrics such as inventory, average
daily rate (ADR), occupancy rate, deliveries and recent development. Hotel data comes from
STR, Inc. (previously known as Smith Travel Research), a subsidiary of CoStar. STR maintains
a real estate database and market information service that relies on source-reported data
and as a result, it frequently updates its information, and historical data may change as more
detailed information becomes available.
Hotel Market Snapshot
In 2025, Gallatin County had 6,637 hotel rooms, Bozeman accounted for 46.0 percent, or
3,050 rooms (Table 14). Between 2020 and July 2025, Gallatin County added 1,183 hotel
rooms. The hotel room base has increased rapidly since 2020 as post-pandemic travel
increased. Over the period between 2020 and 2025, Gallatin County as a whole added an
average of 237 rooms per year, corresponding to a 4.0 percent annual average growth rate.
Over the same period, Bozeman added an average of 138 rooms per year, or a 5.2 percent
annual average growth rate. The increase in hospitality demand put upward pressure on ADR
which stood at $213 in Gallatin County and $171 in Bozeman as of July 2025. Since 2020,
ADR grew at an annual average rate of 13.4 percent in the county and 10.8 percent in the city.
The hotel market has strong average annual occupancy at about 70.0 percent.
The region has significant tourist attractions that keep demand strong in both summer and
winter peak seasons. Yellowstone National Park has seen a boom in visitors since the COVID-19
Pandemic and the area is a frequent stopover for people visiting Glacier, Yellowstone, and Grant
Teton National Parks. The nearby Big Sky and Bridger Bowl ski areas also draw visitors to the
region as well.
Table 14. Hotel Summary, 2020-July 2025
2025 Q3
2020-July 2025
Description 2020 2021 2022 2023 2024 Total Avg.Ann. %
Inventory Rooms
Bozeman 2,362 2,465 2,608 2,725 2,828 3,050 688 138 5.2%
Gallatin County 5,451 5,679 5,851 5,966 6,315 6,637 1,186 237 4.0%
Bozeman % of Gallatin County 43.3%43.4%44.6%45.7%44.8%46.0%58.0%
Average Daily Rate
Bozeman $102 $150 $180 $183 $186 $171 $68 $14 10.8%
Gallatin County $114 $157 $193 $207 $212 $213 $99 $20 13.4%
Annual Occupancy Rate
Bozeman 58.4%73.4%72.5%73.8%74.0%69.4%
Gallatin County 53.1%67.9%66.6%67.4%67.2%64.3%
Source: CoStar; Economic & Planning Systems
4. Accommodations Market
Economic & Planning Systems, Inc. 29
In 2025 Q3 there were 667 rooms built in Gallatin County and Bozeman (Figure 10). This is
the most deliveries in a single year in Gallatin County since 2010 and an increase of 320 rooms
from 2024. Since 2010, Gallatin County added 2,652 room with Bozeman accounting for 1,485
rooms. Since 2020, 1,665 rooms have been delivered in Gallatin County and 912 in Bozeman
as hotel development rebounded after the pandemic.
Notable hotel deliveries outside of Bozeman include the Home2 Suites in Four Corners (2025),
EVEN Hotels (2024), Extended Stay America Premier Suites (2024), and the Montage Big Sky
(2021). The majority of new hotels outside Bozeman are concentrated in the immediate area,
often near the airport. The Montage Big Sky, a luxury hotel catering to ski travelers, is the only
new hotel built outside the Gallatin Valley.
Figure 10. Hotel Room Deliveries 2010-July 2025
30 Bozeman 2025Q2 Economic and Market Update
Notable Projects
Between 2020 and 2025 Q3, Gallatin County added 576 economy rooms and 742 upscale
rooms for a total of 1,318 rooms as shown in Table 15. By 2027, the room base in the county is
expected to grow by 696 rooms as hotels under construction add 464 economy rooms and 232
upscale rooms. Hotel development outside of Bozeman occurred primarily in Belgrade near
the airport, which added 244 rooms with 359 rooms under construction.
Table 15. Notable Hotel Development and Construction, Gallatin County 2020-2027
Description City Rooms
Year Built/
Expected Status
Recent Economy DeliveriesEverhome Suites Bozeman Bozeman 113 2025 Existing
Home2 Suites by Hilton Bozeman Four Corners Four Corners 100 2025 Existing
TownePlace Suites Bozeman West Bozeman 107 2025 Existing
Extended Stay America Premier Suites - Belgrade Belgrade 124 2024 Existing
Home2 Suites by Hilton Bozeman Midtown Bozeman 103 2024 Existing
Wagon Wheel Hotel West Yellowstone 29 2022 Existing
Total --576 ----
Expected Economy Development
Fairfield by Marriott Inn & Suites Bozeman Bozeman 110 2027 Under Construction
Hampton Inn & Suites Bozeman Downtown Bozeman 125 2026 Under Construction
Hampton by Hilton Belgrade Bozeman Airport Belgrade 125 2026 Under Construction
Atwell Suites Belgrade - Bozeman Airport Belgrade 104 2025 Under Construction
Total --464 ----
Recent Upscale Deliveries
EVEN Hotels Bozeman Yellowstone Intl Arpt Belgrade 120 2024 Existing
Courtyard by Marriott Bozeman Bozeman 117 2023 Existing
AC Hotel Bozeman Downtown Bozeman 143 2022 Existing
Residence Inn by Marriott Bozeman Downtown Bozeman 104 2021 Existing
Montage Big Sky Big Sky 136 2021 Existing
Kimpton Armory Hotel Bozeman Bozeman 122 2020 Existing
Total --742 ----
Expected Upscale Development
Hyatt House Bozeman Bozeman 102 2027 Under Construction
Hyatt Place Bozeman Yellowstone Airport Belgrade 130 2025 Under Construction
Total --232 ----
Total Deliveries --1,318 ----
Total Development --696 ----
Source: CoStar; Economic & Planning Systems
Economic & Planning Systems, Inc. 31
Hampton Inn & Suites Bozeman Downtown – Bennet Hospitality in conjunction with R4
Architecture are set to deliver a 125 room, 4 story Hampton Inn & Suites at the intersection of
5th and Main Street in Bozeman. The development will include ground floor retail and onsite
parking. The development is located at the site of the abandoned City Center Motor Inn and
Black Angus restaurant and had been vacant since 2017.
Everhome Suites Bozeman – Everhome Suites is an extended-stay hotel brand owned by
Choice Hotels, a multinational hospitality firm. Everhome Suites offers fully equipped kitchens,
on site laundry, and additional amenities in its midscale extended stay offerings. The Bozeman
location is located less than two miles from Montana State University and the MSU Innovation
Campus.
TownPlace Suites Bozeman West – TownPlace Suites is a Marriott owned brand of extended-
stay hotels. The Bozeman West location opened in July 2025 and features guest rooms with
full kitchens, work desks, and refrigerators. The hotel is located in north Bozeman, seven miles
from Bozeman Yellowstone International Airport, four miles from downtown Bozeman, and
four miles from MSU.
Occupancy Trends
As of July 2025, hotels in Bozeman were 83.2 percent occupied and the average daily
occupancy was 69.4 percent (Figure 11). Peak hotel occupancy in Gallatin County and
Bozeman occurs each July during the summer tourist peak, with a secondary peak occurring
between February and March during ski season. Peak season aligns with the summer and
winter recreation peaks in February-March and June-August.
Figure 11. Occupancy Rate by Month, January 2022-July 2025
32 Bozeman 2025Q2 Economic and Market Update
Average Daily Rate Trends
Average Daily Rate (ADR) is measure of the annual average revenue per paid occupied room
on a given day. Through July 2025, the ADR in Gallatin County and Bozeman was $213 and
$171, respectively (Figure 12). ADR in the city and county trended together between 2010
and 2021; however, in 2022, Bozeman saw a decline in ADR and Gallatin County ADR growth
plateaued. A growing overall bed base coupled with an increase in the number of economy
hotel rooms contributed to the flattening of ADR.
Figure 12. Average Daily Rate, 2010-July 2025
Economic & Planning Systems, Inc. 33
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This chapter provides an overview of the housing market in Bozeman, including an analysis
of building permit trends, home prices, the rental market, and key indicators of housing
affordability and housing demand.
Construction
Bozeman’s housing market has seen strong growth since 2020 (Table 16). Between 2020 and
2024, the City issued 7,217 new construction permits, or 1,443 on average each year. The
majority of permits were for single unit homes, accounting for 45.2 percent of the total. Single
unit attached housing (townhomes, duplexes, triplexes, and fourplexes) was the second largest
contributor representing 36.7 percent of permits. Multihousehold units comprised 13.9
percent of new construction. Finally, accessory dwelling units (ADUs) made up 4.1 percent of
permits. Note: the City has revised its system of tracking building permits, thus the data in this
report may not align with previous versions.
Table 16. Bozeman Permit Trends, 2020-2024
2020-2024
Description 2020 2021 2022 2023 2024 Total Ann. #% of Tot.
Single Family 873 787 472 663 466 3,261 652 45.2%
Duplex 205 205 66 145 168 789 158 10.9%
Triplex 51 46 50 80 48 275 55 3.8%
Fourplex 61 77 60 23 141 362 72 5.0%
Detached Accessory Dwelling Unit 22 82 84 74 32 294 59 4.1%
Multifamily / Condo (5+ units)144 266 152 237 207 1,006 201 13.9%
Townhome 357 167 358 137 211 1,230 246 17.0%
Total 1,713 1,630 1,242 1,359 1,273 7,217 1,443 100.0%
Source: City of Bozeman; Economic & Planning Systems
5. Residential Real Estate
Economic & Planning Systems, Inc. 35
Housing Prices
Through July of 2025, the median price for a single-household residence in Bozeman was
$796,500, a 2.2 percent increase from the prior year (Table 17). Overall, Gallatin County and
its communities have experienced a significant increase in home sales prices since 2018, with
prices increasing by an annual average rate over 9.1 percent. The most significant increase
occurred between 2020 and 2021, with increases of nearly 30 percent in Bozeman and 56.0
percent in Gallatin County.
Home prices in Bozeman increased rapidly between 2018 and 2022; however, growth has
moderated since 2022 as high interest rates quelled demand for new homes. Home prices rose
in Manhattan and the rest of Gallatin County between 2024 and 2025. A growing population
in the areas surrounding Bozeman, as well as an increase in the number and size of second
home construction, contributed to the rise in home prices.
The rise in home prices poses challenges for housing affordability, workforce attraction and
retention, and quality of life. For investors and home builders, it is a signal of strong demand
and investment opportunities in the community. The City is exploring ways to responsibly
expand housing supply while preserving community health and wellbeing and reducing sprawl.
The City has incentives for affordable and workforce housing up to 120% of AMI including:
•Funding for gap closure
o Community Impact Fund
o Low Income Housing Tax Credits (both federal and state);
o Land donation
•Density bonus program;
o City of Bozeman Affordable Housing Ordinance
•Tax increment financing through its comprehensive urban renewal program
Table 17. Home Price Trends, 2018-May 2025
July 2018-July 2025
Description 2018 2019 2020 2021 2022 2023 2024 2025 Total Ann. #Ann. %
Median Sales Price
Bozeman $427,500 $460,000 $540,000 $700,000 $799,000 $770,000 $779,000 $796,500 $369,000 $52,714 9.3%
Belgrade $320,000 $340,950 $375,000 $535,000 $577,720 $605,700 $604,000 $589,000 $269,000 $38,429 9.1%
Greater Manhattan $389,000 $416,000 $564,750 $640,000 $737,500 $713,100 $750,500 $803,000 $414,000 $59,143 10.9%
Gallatin County $416,000 $436,000 $439,000 $685,000 $790,000 $792,000 $810,000 $867,000 $451,000 $64,429 11.1%
YoY % Change
Bozeman -7.6%17.4%29.6%14.1%-3.6%1.2%2.2%
Belgrade -6.5%10.0%42.7%8.0%4.8%-0.3%-2.5%
Greater Manhattan -6.9%35.8%13.3%15.2%-3.3%5.2%7.0%
Gallatin County -4.8%0.7%56.0%15.3%0.3%2.3%7.0%
Source: Gallatin Association of Realtors; Economic & Planning Systems
36 Bozeman 2025Q2 Economic and Market Update
Multihousehold Market
Through the third quarter of 2025, Bozeman had 8,944 multihousehold units in its inventory,
73.5 percent of the Gallatin County total of 12,167 (Table 18). Since 2020, Bozeman has added
4,632 units, an average of 926 per year. Over the same period, Gallatin County as a whole
added 6,758 units, an average of 1,352 per year. Bozeman had 68.5 of the multihousehold
market share.
As of 2025 Q3, the multihousehold vacancy rate was 18.5 percent in Gallatin County and
18.7 percent in Bozeman. Both Gallatin County and Bozeman have seen approximately a 13.0
percentage point increase in vacancies since 2020. In Bozeman, the vacancy rate rose by 6.1
percent between 2024 and 2025 Q3. Multihousehold vacancy rates fluctuate with the supply
of new units. The vacancy rate has increased with the large addition of new supply in 2024 and
2025 when almost 1,900 new units were built (Figure 13). A more detailed analysis of vacancy
rates can be found later in this chapter.
Table 18. Multihousehold Summary, 2020-2025 Q3
2025 Q3
2020-2025 Q3
Description 2020 2021 2022 2023 2024 Change Ann. #Ann. %
Inventory (Units)
Bozeman 4,312 4,495 5,010 5,486 8,104 8,944 4,632 926 15.7%
Gallatin County 5,409 5,593 6,276 7,141 11,328 12,167 6,758 1,352 17.6%
Bozeman % of G.C.79.7%80.4%79.8%76.8%71.5%73.5%68.5%
Bozeman YoY % Change 18.7%4.2%11.5%9.5%47.7%10.4%179.0%
Per Unit Asking Rent
Bozeman $1,993 $2,093 $2,208 $2,244 $2,261 $2,169 176 35 1.7%
Gallatin County $2,020 $2,113 $2,222 $2,259 $2,276 $2,179 159 32 1.5%
Deliveries (Units)
Bozeman 678 183 515 476 1,044 840 10,387 2,077 4.4%
Gallatin County 678 184 683 865 1,233 840 5,605 1,121 4.4%
Vacancy
Bozeman 5.8%4.0%4.9%7.1%12.6%18.7%
Gallatin County 4.9%3.6%4.9%9.3%13.7%18.5%
Bozeman YoY % Difference 2.1%-1.8%0.9%2.2%5.5%6.1%13.0%
Source: CoStar; Economic & Planning Systems
Economic & Planning Systems, Inc. 37
Between 2010 and 2025 Q3, 5,605 multihousehold units were built in Gallatin County (Figure
13). Of that, Bozeman accounted for 85.3 percent of the total, equivalent to 4,782 units.
Figure 13. Multihousehold Deliveries, 2010-2025 Q3
Notable Projects
Uplands – Uplands is a 343 unit market rate apartment and residential community that
opened in 2025. The Uplands complex includes a wide range of amenities such as a fitness
center, pool, clubhouse, remote work space, EV charging stations, and onsite greenspace. Rent
for a one-bedroom unit is $1,649 per month, $2,713 for a two-bedroom unit, and $3,549 for
a three-bedroom unit. The building is located the intersection of Tschache Lane and N 27th
Avenue, three miles from downtown Bozeman.
The Freestone – Located at N. 5th Avenue and W. Main Street, The Freestone is a 121-unit
luxury multihousehold building with 900 square feet of retail space. The site features studio,
one, and two-bedroom apartments ranging from 600 to 1,800 square feet. The Freestone is
blocks from central Bozeman and is a three-minute drive from MSU. Rent for a one bedroom
apartment ranges from $1,775 to $2,700. A two bedroom apartment costs $2,900 per month
to rent.
The Beaumont – Located on Patrick Street and 14th Avenue, The Beaumont is an income
and student status restricted residence for households at or below 60% AMI. The building
consists of 440 units, 155 (35 percent) of which are income restricted. Rent for a one-bedroom
apartment is $1,271 per month, $1,507 per month for a two-bedroom apartment, and $1,735
per month rent for a three-bedroom apartment. The building includes amenities such as a
fitness center, coworking space, and in unit washer-dryer. The building is two miles from
downtown Bozeman and Montana State University.
38 Bozeman 2025Q2 Economic and Market Update
Westlake Heights – Westlake Heights is a 216-unit affordable multihousehold development
that opened in 2025. Located at N. 3rd Avenue and W. Tamarack Street, the building is a half
mile north of downtown Bozeman and 1.75 miles north of MSU. The development is income
restricted to renters earning 50% to 70% of AMI and has units for 1–4-bedroom households,
as well as amenities such as onsite maintenance, a dog park, a clubhouse, and a fitness center.
Rent is approximately $1,300 for a one bedroom apartment, $1,500 for a two bedroom
apartment, and $2,000 to $2,200 for a three bedroom apartment.
Table 19. Recent Multihousehold Construction, 2024-2025
Description City Units
Year Built/
Expected Avg. Rent/ Mo.
Market Rate
Arbor Houses at Blackwood Groves Bozeman 2025 20 $3,166
The Freestone Bozeman 2025 121 $2,175
Buffalo Run Bozeman 2025 237 $2,842
Uplands Bozeman 2025 343 $2,794
University Crossing Bozeman 2025 59 $1,612
The Ives Bozeman 2024 99 $2,269
Yellowstone Landing Belgrade 2024 168 $2,384
The Kestrel Bozeman 2024 92 $2,292
The Edison at Bozeman Gateway Bozeman 2024 231 $1,958
Avion Apartments Bozeman 2024 216 $1,968
Yellowtail Residences Big Sky 2024 35 --
The Henry Bozeman 2024 44 --
Sum/ Average 1,665 $2,375
Affordable/Rent Subsidized
Westlake Heights Bozeman 2025 216 $1,895
The Beaumont Bozeman 2025 440 --
Sum/ Average 656 $1,895
Sum/ Average 2,321 $2,311
Source: CoStar; City of Bozeman; Economic & Planning Systems
Economic & Planning Systems, Inc. 39
LIHTC Market
The Low-Income Housing Tax Credit (LIHTC) program is a federal program that awards tax
credits to housing developers in exchange for the reservation of a percentage of units as
affordable housing. As of 2025, Bozeman has a LIHTC inventory consisting of 1,161 units
across 19 buildings (Table 20). These units have an average occupancy rate of 97 percent (for
buildings with a surveyed occupancy rate and excluding buildings built in 2025), 15.3 percent
higher than the Bozeman average of 81.7 percent in 2025. The higher occupancy rate for
LIHTC development and 3.9 month average wait list time indicates that there is additional
demand for affordable housing not being met by the current supply. According to Bozeman’s
community housing dashboard, there are 1,406 LIHTC units either under construction or in
review. The 7th & Aspen affordable housing development is the only LIHTC building currently
under construction and will deliver 96 affordable units in 2026 when fully open.
Table 20. Bozeman LIHTC Summary
Project Name Credit Type
Low Income Units AMI Target Year in Service Vacancy Wait List
Wait List Length (Months)
Westlake Heights --216 60.0%2025 71%No waitlist N/A
Comstock Apartments 4%24 60.0%1996 ----N/A
Comstock II Apartments 4%34 60.0%1999 ----N/A
Comstock III Apartments 4%28 60.0%2001 ----N/A
Castlebar Apts II 4%29 60.0%2003 ----N/A
Bridger Apartments - Bozeman 9%44 --2003 0%3 6
Bridger Apartments Phase II Both 46 --2005 0%No waitlist N/A
Pond Row 4%20 --1999 0%No waitlist N/A
Aspen Meadows Apartments 4%43 --2000 ----N/A
Baxter Apts Both 48 60.0%2006 ----N/A
Haggerty Lane 9%10 60.0%2013 ----N/A
Stoneridge Apartments 9%48 --2016 ----N/A
Larkspur Commons Both 136 50%-60%2016 3%--1.5
Castlebar Both 72 60.0%2021 ----N/A
Arrowleaf Park Both 136 60.0%2022 2%A few 1
Boulevard Apartments Both 41 --2022 --N/A
Perennial Park Both 96 60.0%2021 4%A few 7
Timber Ridge Apartments Both 30 60.0%2023 ----N/A
Bridger Peaks Apartments 9%60 60.0%2022 7%No waitlist N/A
Average [1]--61 60%2011 2.3%--3.9
Sum --1,161 ----------
[1] Average occupancy excludes Apartments built in 2025
Source: Department of Housing and Urban Development; Economic & Planning Systems
40 Bozeman 2025Q2 Economic and Market Update
Vacancy Analysis
Market Rate and Affordable Vacancy Analysis
As of 2025 Q3, the vacancy rate for affordable multihousehold units was 3.6 percent
compared to 19.9 percent for market rate units (Figure 14). Affordable housing has a lower
vacancy rate due to the low supply of affordable units and high demand from low-income
households. Market rate apartments have overall higher vacancy rates because of the large
amount of new supply built in 2024 and 2025, which has not fully leased up yet. The vacancy
rate for market rate multihousehold units has risen significantly since 2022. This coincides
with a period of substantial growth in supply. Bozeman saw 840 new market rate units enter
the market this year, and 1,943 deliveries since 2022.
Figure 14. Market Rate and Affordable Multihousehold Vacancy Rate and Deliveries, Bozeman
New Development Trends and Vacancy Analysis
Between 2024 and 2025, 1,943 multihousehold units were built in Bozeman, 26.7 percent
of the total inventory (Table 21). Average asking rent per month is $291 higher in new
development compared to the pre-2024 multihousehold stock. Notably, units built since 2024
have a vacancy rate of 44.2 percent, 35.0 percent higher than existing development.
Table 21. New vs Existing Multihousehold Trends, Bozeman
Property Type Units
Avg. Asking
Rent/ Mo.
Vacancy
Rate
New Development (2024-2025)1,943 $2,328 44.2%
Existing Development (Pre-2024)7,279 $2,037 9.2%
Difference --$291 35.0%
Source: CoStar; Economic & Planning Systems
Economic & Planning Systems, Inc. 41
Figure 15. Vacancy Rate in New vs Existing Multihousehold Development, Bozeman
Historically, vacancy rates increase when new supply is built. When new units are delivered,
the vacancy rate increases and then falls as new supply gets leased. For example, in 2015, 333
new units were delivered in Bozeman, more than the previous six years combined (Figure 16).
As the supply of available units increased the vacancy rate increased, reaching 7.9 percent, a
six-year high. Over the next three years, the new units were absorbed and the vacancy rate
lowered. This pattern of increasing vacancy rates as a result of new supply was repeated since
2013. Since 2024, the volume of unit delivery has risen dramatically, increasing the vacancy
rate to a 16-year high of 18.7 percent. It is expected that the new supply will absorb over the
next few years as Bozeman continues to grow; however, vacancies will remain high and the
construction of new multihousehold development may slow.
Figure 16. Bozeman Multihousehold Deliveries and Vacancy Rate, 2010-2025 Q3
42 Bozeman 2025Q2 Economic and Market Update
The recent increase in the supply of multihousehold units in Bozeman has increased
apartment vacancies, particularly for new development. In order to fill those vacancies,
landlords are offering rent concessions to attract tenants. Rent concessions peaked in 2023
with a $77 difference between effective and asking rent. Although that difference narrowed
in 2024 and 2025, it has remained well above pre-2023 levels (Figure 17). Anecdotally, four
surveyed multihousehold developments offer two months free rent in addition to other
concessions such as raffles.
Figure 17. Bozeman Effective vs Asking Rent per unit, 2019-2025
Economic & Planning Systems, Inc. 43
Affordability
The rise in housing prices and interest rates has made homeownership difficult for many
people in Bozeman. In 2016, a household earning 110 percent of the HUD Area Median
Income (AMI) could afford the median priced home of $359,500. Through July 2025, a
household would need to earn 182% of AMI to afford the current median home price of
$759,600. The median home price decreased between 2024 and July 2025, falling from
$799,000 to $759,600 (-4.93 percent). As a result, the required annual income to afford a
median priced home fell, from $229,219 to $220,164, or 210% of AMI to 182% of AMI.
Table 22. Required Annual Income to Afford Median Home Price, 2024-July 2025
Bozeman Factor 2024 July 2025
Median Home Price $799,000 $759,600
Mortgaged Amount (less: downpayment)5.0% down pmt $759,050 $721,620
Mortgage Interest Rate 6.7% int.6.8% int.
Loan Term 30-years 30-years
Monthly Costs
Mortgage Payment (Monthly)$4,898 $4,704
Less: Insurance $1,500 / Year $125 $125
Less: Property Taxes 1.0%$666 $633
Less: Miscellaneous $500 / Year $42 $42
Total Monthly Housing Costs $5,730 $5,504
Required Annual Income 30%$229,219 $220,164
100% AMI for Family of 4 $109,000 $120,700
AMI for Family of 4 210%182%
Source: Gallatin Association of Realtors, HUD, US Census; Economic & Planning Systems
44 Bozeman 2025Q2 Economic and Market Update
In 2024, the income level to afford the median priced home was 210% of AMI (Figure 18).
Through July 2025, 182% of AMI is required to afford the median priced home. Households
earning 180% of AMI ($217,260) would still need to earn another $2,904 per year to afford
the median priced home (Figure 19). According to the Gallatin Association or Realtors, median
home prices fell by 5.0 percent between 2024 and July 2025.
Figure 18. Income Gap to Afford Median Priced Home, Bozeman, 2024
Figure 19. Income Gap to Afford Median Priced Home, Bozeman, 2025
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A household is defined as “cost burdened” when it is paying 30 percent or more of income
towards rent or mortgage payments. In 2023, 47.2 percent of housing units in Bozeman were
cost burdened compared to 37.6 percent in Gallatin County (Table 23). Over half of renter
housing units and approximately one third of owner housing units were cost burdened in
both the city and county in 2023. The percentage of cost burdened housing units increased
from 2019 to 2023. In the city, 6.9 percent more housing units were cost burdened in 2023
compared to 2019. In the county, 4.8 percent more housing units were cost burdened over the
same period.
Table 23. Cost Burdened Housing Units, 2019-2023
Change
Description 2019 2023 2019-2032
Bozeman
Cost Burdened Owner-Occupied Housing Units 23.7%32.7%9.1%
Cost Burdened Renter-Occupied Housing Units 52.8%58.2%5.3%
Cost Burdened Housing Units 40.2%47.2%6.9%
Gallatin County
Cost Burdened Owner-Occupied Housing Units 23.4%28.2%4.7%
Cost Burdened Renter-Occupied Housing Units 47.4%52.4%5.0%
Cost Burdened Housing Units 32.7%37.6%4.8%
Source: ACS 5-Year Estimates; Economic & Planning Systems
46 Bozeman 2025Q2 Economic and Market Update
6. Population Forecasts and Housing Demand
EPS prepared 20-year population and housing forecasts for Bozeman and Gallatin County in
a separate report. Three scenarios were developed to show the range of potential growth
over the next 20 years based on different market influences and policy factors:
•Baseline Scenario – The baseline scenario simply projects a continuation of historic trends
in job and population growth.
•Amenity-Driven Scenario – This scenario shows how the appeal of this region to part-time
residents and vacation homeowners (second homes) affects growth patterns and housing
demand. The demand for part-time/vacation homes puts pressure on the housing market by
constraining supply and increasing home prices.
•Constrained City Scenario – This scenario shows how changes in land use policy or
infrastructure capacity limits reduce the amount of growth the City of Bozeman can
accommodate.
Each forecast is based on the same jobs forecast, but allocates population and housing growth
differently for each scenario. New jobs create labor force demand (population) which then
creates housing demand. The factors that vary in the scenarios are commuting patterns and
the number of part-time/second homes which result in different allocations of population and
housing demand by area.
Forecast Summary
The jobs and population forecasts are summarized in Figure 20 and Figure 21. By 2045,
Gallatin County is forecast to gain 44,500 jobs at an annual growth rate of 2.0 percent per year
to 135,000 jobs in 2045. The City of Bozeman is forecast to grow to 79,300 jobs, an addition
of 26,100 jobs, also at an annual rate of 2.0 percent. The city capture of 59 percent of the job
growth is based on historic trends in job locations.
The 2045 population of the county and the City of Bozeman will vary depending on numerous
factors that affect where housing and population growth occur. The total county population
could range from 181,500 to 194,000 depending on how many people live and work in Gallatin
County and how much commuting increases from outside the county from areas with lower
cost housing. The Bozeman population could range from 78,300 to 87,400 depending on how
much growth the city accommodates and how factors like housing costs and increases in part-
time resident homes shift the full-time population to other areas of the county and outside
Gallatin County, thereby increasing in-commuting.
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Figure 20. Jobs Forecast, Bozeman and Gallatin County, 2045
Figure 21. Population Forecast, Bozeman and Gallatin County, 2045
48 Bozeman 2025Q2 Economic and Market Update
Scenario Comparisons
The total housing demand is calculated from the labor force needs in the jobs forecast and
summarized in Table 24. Key metrics with policy implications are compared for each scenario,
below.
Baseline Forecast
Gallatin County, in total, would need to add 29,300 new homes to meet the labor force
demand and maintain the current commuting patterns at about 6 percent of workers who
commute from other counties (Table 24). Historically, Bozeman has captured about 48 percent
of housing construction countywide and maintaining this trend result in demand for 14,100
new homes in Bozeman by 2045.
Table 24. Housing Unit Demand Forecast By Area
Share
Housing Units 2025 2045 Change of Change
Baseline Forecast
Bozeman 28,600 42,700 14,100 41.1%
Gallatin County Total 59,600 88,900 29,300 100.0%
Amenity-Driven Forecast
Bozeman 28,600 42,000 13,400 48.9%
Gallatin County Total 59,600 87,000 27,400 100.0%
Constrained City Forecast
Bozeman 28,600 38,300 9,700 41.1%
Gallatin County Total 59,600 83,200 23,600 100.0%
Source: Economic & Planning Systems
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Amenity-Driven Forecast
This forecast shows the influence of high housing costs and an increase in part-time/second
homes. In this scenario, the percentage of homes occupied by part-time residents or vacation
homeowners about doubles in Bozeman (from about 6 percent to 11 percent), as shown in
Table 25. This results in fewer homes being available for the local workforce, a continued
increase in housing prices, and reductions in the number of people who live and work in
Gallatin County (an increase in commuting). The resulting county population in this scenario is
181,500 (vs. 194,000 baseline), and Bozeman’s population is 81,800 (vs. 87,400 baseline).
In-commuting from lower cost areas doubles from 6 percent to 12 percent countywide due to
the increases in home prices and decrease in homes available for the workforce (Table 26).
Table 25. Part-Time/Second Homes Forecast
Total Housing Units Part-Time/ 2nd Homes % Part-Time/ 2nd Homes
Housing Units 2025 2045 2025 2045 2025 2045
Baseline Forecast
Bozeman 28,600 42,700 1,800 2,800 6.3%6.6%
Gallatin County 59,600 88,900 5,400 8,100 9.1%9.1%
Amenity-Driven Forecast
Bozeman 28,600 42,000 1,800 4,600 6.3%11.0%
Gallatin County 59,600 87,000 5,400 11,400 9.1%13.1%
Constrained City Forecast
Bozeman 28,600 38,300 1,800 2,500 6.3%6.5%
Gallatin County 59,600 83,200 5,400 7,600 9.1%9.1%
Source: Economic & Planning Systems
Table 26. Worker Commuting Pattern Forecast
Gallatin County Workers
and Commuting
Total Workers In-Commuters % In-Commuters
2025 2045 2025 2045 2025 2045
Baseline Forecast 83,000 123,800 5,000 7,400 6.0%6.0%
Amenity-Driven Forecast 83,000 123,800 5,000 14,900 6.0%12.0%
Constrained City Forecast 83,000 123,800 5,000 14,900 6.0%12.0%
Source: Economic & Planning Systems
Constrained City Forecast
The Constrained City forecast has outcomes that are similar to the Amenity-Driven scenario.
In this scenario, it is assumed that growth policy in the City of Bozeman reduces the amount
of housing growth that ocurrs in the city. The 2045 population of Gallatin County is forecast
at 181,500, which is the same as in the Amenity-Driven scenario. What changes is the
distribution of population within the county. With Bozeman’s population forecast to be 78,300
compared to 87,400 in the Baseline scenario, there are 9,100 people and 4,400 housing units
built elsewhere in Gallatin County, just not in the City of Bozeman. This scenario shows how
one jurisdiction’s land use decisions ripple across a regional market.
50 Bozeman 2025Q2 Economic and Market Update
Housing Unit Types
Permit data from the City of Bozeman was used to estimate housing unit demand by type for
the Baseline scenario. Bozeman is forecast to have demand for 6,400 single household units
between 2025 and 2045, corresponding to 45.2 percent of total units (Table 27). Overall,
single household, duplex, and townhome unit types are forecast to account for 73.2 percent
of new unit demand. There is forecast demand for an additional 2,000 multihousehold units,
and 1,200 triplex and fourplex units, or 22.8 percent of the total. Continued demand for single
household, duplex, and townhome units is likely to continue to put pressure on the city’s
housing market as population and job growth increases housing unit demand.
Table 27. Housing Unit Demand by Type, City of Bozeman
New Unit Demand
2025-2045
Unit Type New Units
Single Household 45.2%6,400
Duplex 10.9%1,600
Triplex 3.8%500
Fourplex 5.0%700
Detached ADU 4.1%500
Multihousehold / Condo (5+ units)13.9%2,000
Townhome 17.0%2,400
Total 100.0%14,100
Source: City of Bozeman; Economic & Planning Systems
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