In July, Inman gazes at the glitter and glam of the luxury real estate market. Snapshots of the country’s top luxury markets, advice from leading agents, features on what affluent homeowners want now and a breakdown of the top sales of 2023 (so far) are all in the cards leading up to Inman Luxury Connect, Aug. 7-8 at the Aria in Las Vegas. Make plans to join us now.
Established in 1973, Big Sky Resort, Montana, lies in the southwestern part of the state. For most of its existence, it remained somewhat under the radar, quietly providing what the resort calls “transformative mountain experiences.” Over the last five years, a number of developments combined to create a huge surge in popularity, which translated to a massive increase in area home prices.
First, Big Sky joined the multi-resort pass groups Mountain Collective and Ikon Pass in the 2018-2019 season, making it more economical for large numbers of passholders to ski there. The growth of the Bozeman Yellowstone International Airport — which now has many new nonstop flights from major cities, including a seasonal JetBlue one from John F. Kennedy International Airport in New York contributing to an 82 percent increase in passengers in the past five years — has made getting to the resort much easier.
In addition to these real-life developments, the love affair with Montana has been fueled by the wildly popular television series Yellowstone, which debuted in 2018. Now in its fifth season, the drama has showcased the allure and appeal of life in the mountains, river valleys and grassy plains. Bozeman and the surrounding area became a “hot” destination for both tourists and homeowners alike, underscoring the strong connection between high-end tourism and luxury buyers.
This growing interest in the area has had a huge impact on high-end sales, particularly in the second home/vacation home market. Typically, second-home buyers follow two trends. They come as tourists, fall in love, and purchase a home. This segment is heavily influenced by trends in tourism. The second buyer type follows family or friends already living in that market.
The burgeoning second home market was also affected by the pandemic fueling migration from the West Coast. The wide-open spaces and small-town feel were suddenly wildly popular. There are two luxury private residential developments near Big Sky: Moonlight Basin and the Montage at Spanish Peaks Mountain Club.
Moonlight Basin spans multiple developments offering a variety of living options from studios to large penthouses. Currently sold out, new development is slated for 2024. One&Only, a collection of ultra-luxury, one-of-a-kind resorts and private homes, will launch its first U.S.-based resort consisting of six resort buildings, including 73 guest rooms and suites, 19 guest cabins, five lodges and 62 private residences starting at $8.45 million.
The Montage at Spanish Peaks Mountain Club – a resort offering skiing, golf, fishing and riding – consists of 139 luxury guest suites and residences. The owned properties offer a unique second home ownership opportunity with one-quarter ownership interests and includes membership at Spanish Peaks Mountain Club with ski-in, ski-out access to Big Sky Resort. The homes are fully furnished three- and four-bedroom residences with high end finishes, that come with an exclusive Après ski residents’ lounge, ski lockers, underground parking and membership to the Spanish Peaks Mountain Club with pricing starting at $1,500,000.
And in Bozeman, the focal point for luxury buyers is the Yellowstone Club, an ultra-exclusive private residential club and resort outside of downtown Bozeman. Located just one hour from the Bozeman Yellowstone International Airport, the property is rated among the top 10 lifestyle estates in the world. A wide range of residences are offered, from condos and custom homes to ranches.
In the downtown area of Bozeman, we are seeing a change in the product mix. A few years ago, three- and four-bedroom, two-and-a-half-bath condos on multiple levels with a one-car garage were prevalent. Today we are seeing a lot of residential properties built into existing parcels, such as warehouses.
Another scenario involves a developer buying a building, tearing it down and building luxury stacked flats – single-family condominiums built on top of each other, one per floor, allowing windows on every side for each single-level residence.
Underground parking garages are top on buyers’ lists. These in-town residences, which have been very popular with people who want to be able to walk to town, go for between $1 million and $4 million. Up until a few years ago, we did not have this level of luxury real estate available outside of the Yellowstone Club.
There is also a growing interest in legacy properties – homes that are special enough to be passed down through generations. This aligns with trends in club memberships with a lineage feature, meaning they pass to the next generation.
We are seeing median home sale prices in the brisk second home and vacation home market range from $1.5 million to $3 million. These are sold as turnkey properties complete with housekeeping and other concierge services, allowing owners to maximize their recreation time. They also offer a decision-free transaction that afterward requires no upkeep on the part of the owner.
We have developed a list of vetted concierge services for our clients so they can hire trusted providers for their luxury properties. The ability to be able to offer this service is critical to establishing lasting connections with the ultra-high-net-worth segment – it’s not just a nice-to-have service. Clients in this segment expect it.
The surge in interest in Big Sky and Bozeman doesn’t show signs of abating. The new development in the pipeline is encouraging, but we must also responsibly manage resources and infrastructure to support sustained growth.
The future holds a delicate balance between growth, affordability and the environment. Strong efforts continue to ensure a responsible and thoughtful growth plan, including priorities of preserving open space and protecting view sheds and wildlife corridors. Maintaining quality of life with affordable and workforce housing remains highly challenging in this last best place.
Robyn Erlenbush is a broker-owner at ERA Landmark Real Estate and a nationally recognized luxury real estate instructor. Connect with her on Facebook and LinkedIn.
