Builders Address Bozeman Home Affordability

Local Bozeman builders have tried to come up with viable solutions to the affordable housing scenario in Bozeman. Although more building permits have been issued in the last few years, many of these homes are aiming at prices above $300,000 (read some stats on 2014 single family residence homes here). As the Gallatin County has seen high economic prosperity, home prices have gone up as local buyers find themselves able to buy more expensive homes. However, several local builders have tried to come up with designs that would be both affordable and useful to future buyers.

One design has called for a 2 story economy home. The 2 bedroom, 2 bathroom home would be 1,336 square feet and would come with a garage. The home design would sell on average for around $220,000.

Another design would build 720 square foot dwellings with a single bedroom and a flex space area. For this design, the builders would be able to put multiple units on a single lot and the homes would sell for $198,000 each.

Unfortunately, current city set back requirements would need to be changed to make either option possible.  A set back is the space between the home and the lot edge. Current set backs are designed to allow adequate privacy to residents while providing access for repair vehicles and equipment.

The city commission has set a May deadline for builders to brainstorm potential solutions before they move forward on the Bozeman affordable housing issue. In late February, the city postponed a potential zoning change that would require builders to build homes at certain price points on some of their lots. The city has also tried to raise home inventory and looked into lowering impact fees to lower prices. Builders will also want to decide if the options are viable – based on buyer interest in these models. Without a consistent market of buyers, homebuilders would have to take on serious financial risk building these homes. 

 

 

Source: http://www.bozemandailychronicle.com/news/city/builders-pitch-affordable-housing-options-for-bozeman/article_9c26f373-ba0b-5742-b250-d9f4a45b99c8.html?utm_medium=desktop&utm_source=block_647669&utm_campaign=blox

 

 

Hart Real Estate Solutions

www.hart.realtor

406.585.0000

Hart Real Estate Solutions Bozeman Montana


  

 

Comment balloon 2 commentsHart Real Estate Solutions • March 19 2015 10:13AM

Comments

Tim Hart The home builders continue to lose sight of their market. 720sf for $200K? Are they NUTS? The profit margins they are demanding is usurious!

Posted by Sandy Padula and Norm Padula, JD, GRI, Presence, Persistence & Perseverance (Realty National) over 3 years ago

Thanks for your thoughts Sandy!

Posted by Hart Real Estate Solutions, Broker/Owner (Hart Real Estate Solutions) over 3 years ago

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