Missoula realtors: Rental prices climb, vacancies few

Posted at 5:09 PM, Apr 04, 2018
and last updated 2018-04-04 19:09:07-04

MISSOULA – Missoula rental prices continue to climb, and even at higher price points it remains tough to find an apartment.

But the 2018 Missoula Housing Report notes there are hundreds of new multi-family units coming on line, which means that situation could change over the next year.

The new housing report from the Missoula Association of Realtors shows rental prices rebounded last year after taking a slight decrease in 2016 in nearly every category. Three and four bedroom units saw the largest increase, from 5 to 6 percent, while one and two bedroom units increased by less than 2 percent. The average 3-bedroom apartment now costs more than $1,100 per month.

But perhaps the most troubling stat for apartment hunters is the continued lack of availability of any multifamily units. Vacancy rates were as low as 1.2 percent at one point last year, reaching nearly 5 percent after the typical summer turnover.

However, that could change in 2018 and ’19, with hundreds of new units under construction and coming online. 

“What we noticed is that vacancy was still real low, when it came to multiplex," said Brint Wahlberg with the Missoula Organization of Realtors. "Now this year there are a whole bunch that are still being built, that aren’t in the market. So the property managers association is really looking and monitoring that because they’re curious to see if more of these multiplex units is going to start to wash out that demand, or if it’s going to stay strong.”

While there have been over 700 vouchers issued to help with rental assistance in the past, recent federal budget changes likely mean fewer vouchers will be funded this year. 

You can read the new housing report by the Missoula Association of Realtors below: 

RELATED: Missoula housing market survey: Median home prices keep climbing