Real Estate Driving Montana's Economy

New numbers from the Montana Legislative Fiscal Division show the real estate industry has become one of the biggest drivers of Montana’s economy over the past decade.

The report looks at Montana’s “real GDP” by industry. GDP stands for Gross Domestic Product, which is the total value of goods and services produced in the economy. “Real GDP” adjusts those numbers for inflation to give a clearer picture of actual economic growth.

According to the chart, the real estate sector posted the strongest growth among major industries in the state. The report shows annualized growth of more than seven percent from Fiscal Year 2015 through Fiscal Year 2025.

Real estate now represents the largest industry category on the chart, climbing from roughly seven billion dollars in economic output in 2015 to nearly ten billion dollars in 2025, adjusted for inflation.

Trade, business services, and healthcare also showed strong gains during the ten-year span, while industries like agriculture and forestry, transportation, and federal government activity remained relatively flat.

The data reflects Montana’s changing economy during a decade marked by population growth, rising property values, increased housing demand, and expanded development activity across much of the state.

Economists say the rapid rise in real estate activity has brought both opportunities and challenges, particularly in rural communities where housing affordability and workforce shortages continue to be major concerns.

The figures are based on data from the U.S. Bureau of Economic Analysis and were compiled by the Montana Legislative Fiscal Division.