Articles
STATE OF THE ROCKIES
Published in the Bozeman Chronicle, July, 2007.
Although the emphasis of this article is primarily the real estate market and factors that affect it, I feel it is also important to look at the bigger picture on occasion and analyze other indicators of how our area is fairing. Each year, Colorado College prepares an in-depth report titled “State of the Rockies Report Card”. The majority of the articles vary from year to year, but the report consistently tracks and reports what it refers to as “Vital Signs”, which essentially is demographic and economic data compiled and compared over time. The numbers are classified by the eight state Rockies Region (which encompasses Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah, and Wyoming) both individually and as a group, and they are also benchmarked against the United States as a whole. Many of these figures can assist with telling the story of the Rockies Region and what is fundamentally driving this area.
Following is a summary of some of the more pertinent and interesting measures. The majority of the data comes from the 2000 Census and the 2005 American Community Survey, both of which were conducted by the U.S. Census Bureau. Therefore, although this is the 2007 report, unfortunately the data lags behind somewhat. The data is available at http://www.census.gov/.
The first category to look at is population and age. Montana experienced a 1% population growth from 2000 to 2005, while the Rockies Region saw 9% growth ( Arizona led the way with 14%). The U.S. witnessed 2% as a whole. Meanwhile, Montana possesses the oldest median population in our region with the age of 40 years. The Rockies median is reported at 34 years, and the U.S. weighs in at 36 years. A side note to report is Montana 's population age 0-19 is 25% and those age 65+ is 13%. The single digit population growth and older age demographic emphasize the economic and geographic diversity across our state. While Bozeman has been growing at a much more rapid rate than indicated, it is interesting to look at Montana as a whole.
Educational attainment is another factor important to the well-being of our area. Montana fairs extremely well with the percentage of the population earning a High School Diploma (or equivalent) at 91%. This leads the region and the U.S. with 84% and 86% respectively. Montana also holds its own with those earning a Bachelor's Degree at 26%, with both the regional and national figures reported at 27%. Also to note is the percentage of those earning Graduate or Professional degrees at 8%. The Rockies Region and U.S. both state 10% in the same category.
The median home value for Montana was reported at $131,600 in 2005. This was an increase of 15% since the numbers reported in 2000. Although this is a nice appreciation, it does fall below the Rockies Region's growth of 20% (led by Nevada 's rate of 74%) and the national rate of 22%. However, for additional perspective, Bozeman and the immediate surrounding area had a median sold price of $244,900 in 2005 and $281,635 for 2006, once again showing our area's market is quite different than throughout much of the state. Additionally, Montana seems to fall in line with the region and the U.S. with the percentage of owner-occupied housing units at 69%. The Rockies Region is 68% and the nation is 67%.
Although the median household income in Montana is the lowest of the areas reported, it is one of only two regional states that showed a positive change (4% growth) since 2000. The Rockies experienced a 5% decline in median household income during the 5 year period, and the U.S. dropped by 4%.
Montana closely shadows the rest of the region and nation in percentage of the civilian population engaged in certain occupations with 32% in management, professional, or related fields; 18% in the service industry; 26% in sales or office occupations; 2% in farming, fishing, or forestry; 12% in construction, extraction, maintenance, or repair; and 11% in production, transportation, and material moving. Statewide, we have experienced growth in the past five years in all areas except for a notable decrease of 23% in the farming category.
While the information presented is just a glimpse at what is going on in our area, the indicators “depict a region that is economically thriving, socially diverse, and well-educated”. The Rockies region continues to be poised for positive net-migration with population shifting away from declining markets and some coastal cities. Our relatively low unemployment rates combined with strong economic growth make it a logical and safe choice for investors and residents.
Robyn Erlenbush is owner of ERA Landmark Real Estate (with offices in Bozeman, Big Sky, Livingston and Clyde Park) and Intermountain Property Management. She can be reached at robyn@eralandmark.com.