Home Real Estate Hot real estate market has impacted housing affordability in Billings | Local...

Hot real estate market has impacted housing affordability in Billings | Local News

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“I don’t think we’re going to be able to build our way out of it,” Hedrick said.

Some of it is economy of scale. A home builder can construct a $500,000 or $600,000 home and make a profit, but houses smaller than that become too expensive to build and remain affordable, he said.

Builders right now are backlogged on projects, Welzenbach said. On top of that, labor is scarce, lots are pricey, and building materials are still costly. 

She pointed to the price of lumber, which has dropped after a dramatic rise at the start of the year. Even though lumber prices have dropped, most builders purchased the material they’re now using earlier in the year when prices were at their peak. 

“And because of the cost of material, chances are (the builder) is not going to guarantee the price of the home,” Welzenbach said.

Both Hedrick and Seedhouse have seen signs that the market in Billings is starting to normalize. Seedhouse recently showed a buyer six different…

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