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Key Takeaways
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Montana has the biggest affordability gap between actual household income and the recommended household income needed to afford the median home price.
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The median home price in July was nearly $650,000, while the median household income was $72,066, nearly $100,000 less than the minimum recommended income needed to afford that home.
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Pandemic-driven demand from out-of-state buyers and chronically low housing stock have driven up home prices across the state.
Although coastal states (think California and New York) are often touted for their lack of affordability, Montana—a Mountain West state known for its natural beauty and mountainous landscape—tops a Realtor.com list of states with the largest affordability gap for homebuyers in the U.S.
In July, the median price for a home in Montana was $649,900, while the median household income was just $72,066. That’s almost $100,000 less than the recommended income for a house of that price.
In order to comfortably afford a home in the Treasure State, you’d need to earn far more than $72,066, the median household income for Montana. Realtor.com calculated the minimum income needed to afford that median-priced home, and it came to $171,301, almost $100,000 more.
Montana was considered the least affordable U.S. state in a Realtor.com report—it had the largest percentage difference between recommended and actual income needed to afford the median-priced home in July.
Other states that made the list of least affordable include New York, Massachusetts, Hawaii, California, Rhode Island, and Idaho.
What’s Driving Home Prices So High in Montana?
At first glance, it may may be surprising that Montana, one of the least populated states in the U.S., would be considered one of the least affordable states, too. However, housing demand in the state increased during the pandemic as remote workers from more expensive parts of the country flocked there to buy homes.
An analysis by Realtor.com found that, in 2021, second-home purchases in Montana comprised 20% of of all sales in the state.
“Montana’s housing market has grown expensive due to an influx of out-of-state buyers, especially during and after the [COVID-19] pandemic, seeking remote work-friendly, scenic, and less densely populated areas,” said Hannah Jones, a Realtor.com senior economic research analyst.
Major cities in the state, like Missoula, have become significantly more expensive in recent years. The price of a single-family home in Missoula increased from $372,000 in 2020 to $592,000 in 2025, according to data from the Missoula Organization of Realtors.
And it’s not just out-of-state demand that’s driven up the cost of housing in Montana—it’s also persistently low housing supply.
According to a report from the Daily Montanan, a local nonprofit newspaper in Montana, there was 9.6% population growth between 2010 and 2020. At the same time, the Daily Montanan found that there was only 6.6% housing growth.
The Bottom Line
It’s important to consider how much money you make when deciding how much home you can afford. In some states, the cost of living may be low, but demand for housing can drive up prices, pushing a new home out of reach. While Montana is not a state that may immediately come to mind as a place with expensive homes, it’s become the top state with an affordability gap so large that residents may have to look elsewhere when they’re ready to buy.
