Construction is Booming in Montana. Here’s How Builders Can Save Money.

It’s no secret that Montana has been on the rise lately. First, in terms of population. Second, in terms of gross state product (GSP), otherwise known as money, and third in terms of employment. And no matter how you slice it, all of these different metrics mean physical growth in the towns and cities of Montana. Houses for population growth, offices, shops, and warehouses for business growth. 

Construction in Montana is bringing in jobs, and with jobs come people, both temporary and permanent. And even while the temporary workers are there, they add a lot to the local economies. Let’s take a look at how the construction industry is helping build Montana, both in the literal sense and the economic sense. 

The Booming Construction Industry in Big Sky Country

Okay, so we’re going to start with the construction industry in Montana in general. 

How big of a deal is it?

Well, according to the Montana Right Now news, growth was up nearly twenty percent, making it the seventh largest market in the U.S. Impressive, yes? Okay, well let’s put this into perspective. 

Montana currently has a population of just a little over 1.1 million people. The rate of growth has been ranging from about 1-1.6% for the past few years annually, so not huge. But in terms of raw population, Montana ranks in at #43. But here’s the wild part: in terms of area or physical size, Montana is #4. You read that right. 

Forty-third in population, fourth in area. Montana is also 48th in population density, right above Wyoming. So, when you take this data into consideration, it is amazing that Montana has the seventh largest construction market in the nation. 

Factors Driving Construction Growth in Montana

Why the influx of construction in Montana? And is it all of a sudden or has it been building up over time?

Well first, there is the obvious answer that people are drawn to a state with massive wide open spaces. A lot of these folks move away from the urban sprawl to enjoy the freedom that Montana offers. Also, while this is definitely not a political blog, there are some data driven truths that we can’t ignore. Namely, conservatives who have long lived in blue states (namely California and New York) who’ve had enough and called it a day and are moving to the Big Sky Country. So, the first increased demand for construction in Montana is coming from residential housing. 

Of course, how can we forget whatever happened back in 2020. One thing that did happen was a catalyst for work-from-anywhere jobs, so people realized a couple of thing:

1. “I don’t really have to keep on living in Akron, Ohio when I have the internet across the world.”

2. “Living in California is crazy expensive, and I don’t really have to keep living here when I can work anywhere.”

These aren’t direct quotes, of course, and we’re sure Akron is lovely. But you get the point: why stay in the suburban sprawl when you could live in Montana instead? 

Types of Construction Projects Thriving in Montana

The primary driver of new construction is Montana remains residential. Where there is population growth, there is a need for housing. In fact, fully one third of single-family houses in Montana were built between 2000 and 2021. As the amount of new residents grows and demand for new construction continues, this percentage will increase. 

Commercial real estate construction is directly correlating with upticks in both tourism and population. The increase includes hotels, resorts, some retail spaces, restaurants, and of course, office buildings. Also, it does to some extent include manufacturing and warehousing spaces although a lot of the commercial growth in Montana centers around the tourism industry.  

Building up and improving the infrastructure in Montana is another part of the overall growth in the state. As more people live there and hundreds of thousands of tourists visit there, infrastructure takes a beating. This is exaggerated by the extreme weather that Montana endures.

Challenges Facing Montana's Construction Industry

The biggest challenge, or at least one of the biggest challenges, facing the Montana construction industry is the same one impacting construction all over the nation: no workers. The construction industry desperately needs workers to fill in the ranks. This is nothing new; all kinds of different trades are suffering through the same crisis. 

For the 2024 market, the national construction workforce is facing a shortfall of half a million trade workers. That equals a lot of houses and other assorted projects not getting made, or being put on the backburner. 

And then there is the harsh climate. Montana is not for the faint of heart. It is a rugged place, filled with rugged people. But it also makes for tough construction work and short building seasons. 

Equipment Needs for Montana Construction Projects

Finally, this brings us to the dirt in Dirt Legal. Construction takes a lot of equipment to be done properly, and being realistic, with demands of new construction skyrocketing in the state, a lot of what work will go to out of state contractors. 

Outside of pickups and other light- and medium-duty trucks, UTVs are one of the most popular and common vehicles on the jobsite. And in Montana, they are 100% road legal if you tag and register them. But why do that if you are only operating in Montana temporarily?

Lots of reasons, namely that the equipment is registered under a Montana LLC so you get the tax savings right off the bat. But the tag stays on the vehicle, including UTVs, so you can legally operate in other states, too. 

The Dirt Legal Advantage

Montana construction is at an all-time high and if you are a contractor who is either moving there or planning on working there, it is the perfect time to tag your vehicles through a Montana LLC! Granted, the vehicles cannot be financed, but it is a great program that will save you a lot in sales tax. Also, it allows you to tag your UTV so you can cruise from jobsite to jobsite on that rugged Montana terrain without having to trailer your rig.