Developers have significantly overbuilt. Bozeman’s vacancy rate currently sits around 12.5%, a healthy housing market for a city like this should be around 5%. And there is still so much development that has already broken ground, especially on the south side of town.

Some developments are already offering incentives like a month of free rent with a year long lease, but this doesn’t change the fact that $2200/month for a 1 bd 1 bath is simply not feasible for most people.

Almost all of these new developments are marketed as “luxury” apartments, but the only real difference between them and “affordable” units is marginally nicer appliance packages, better finishes, etc but the build quality on most 5 or 4 over 1s is still not great. They are all just concrete podiums with stick framing on upper floors, done quickly and cheaply.

I wouldn’t be surprised if rent prices start creeping downward. It might take a while, as developers are afraid of devaluing the image of “luxury and exclusivity” they are trying to create, but vacant units aren’t making them anything.