Some Great Falls residents will be unable to purchase a home in 2026 due to rising interest rates and a restricted housing supply, which will continue to pinch both buyers and renters.
“You're buying a house right now. If you're renting, you're buying a house,” said Jim Dea, President of the Great Falls Association of Realtors. “You're just buying it for somebody else. You're making their payment on their house for them.”
Quentin Shores reports - watch the video here:
According to realtors, two primary causes are causing affordability concerns: a scarcity of accessible properties and rising borrowing costs.
"One of them is a lack of inventory. And that's a nationwide problem, not just in Montana,” Dea explained. “And then the other thing is interest rates. Interest rates really help drive the market.”
Realtors believe the property market is still recovering from huge disruptions caused by the COVID-19 pandemic. Inventory fell to historical lows, leaving buyers with few options and driving up prices.
"We dropped down to 16 listings a month in Great Falls from 400 listings,” said Dea. “And now we're at about 183 listings.”
This reflects a greater than 90% increase in available homes over previous years. While the development is promising, cost remains an issue.
"We're kind of in a pre-COVID market right now—or we're getting back to a normal real estate market," Dea told reporters.
Prior to the epidemic, the average first-time purchaser in Great Falls was aged 22 to 29. Today, that figure has shifted dramatically.
"Now that age has moved up to about 29 through 36," added Zac Griffin, CEO of Great Falls Association of Realtors. "The barrier to entry is still difficult for some."
Higher property prices, interest rates, and stricter lending criteria have made it more challenging for young buyers to enter the market, even as first-time homebuyer programs remain accessible.
The pressure is not just on buyers. Renters bear the brunt of the strain, with Great Falls' vacancy rate at only 4.5 percent, one of the lowest in the city's history.
Due to the shortage, groups such as Family Promise of Great Falls are finding it increasingly difficult to help families find secure housing.
"We had 120 inquiries for folks that needed housing,” said Greg Grosenick, Executive Director of Family Promise. “We were able to provide some sort of assistance to about 50 of them, but that leaves 70 families that we were not able to really do anything for.”
According to Grosenick, major impediments include increased application costs, high deposits, and landlords who refuse to accept Section 8 housing vouchers.
Despite the hurdles, realtors believe the picture for 2026 is steadier than in previous years, with slower price growth and modest increases in sales activity.
Realtors advise individuals with the financial means to act quickly. "The market is improving," said Griffin, "but affordability is still an issue."
