Rental prices in Missoula climbed in 2025 alongside operating costs
Martin Kidston
(Missoula Current) Rental prices in Missoula continued to creep up in 2025 while developers also incurred higher prices, including insurance and taxes, according to a new report.
The data, presented by the Missoula Organization of Realtors, is compiled by local property management companies and other realtor members who voluntarily report each month.
According to the data, the reported unit count across the rental market increased by roughly 25% last year.
“It means we're working with a larger and more substantive size of rental doors,” said Josh Plum with Plum Property Management. “It strengthens the reliability of the report.”
While the unit count reported by property owners increased, the actual number of new multi-family units launched in 2025 dropped from the prior year. Plum said those newer units continue to be absorbed by the market but at a slower rate.
The average vacancy rate in 2025 among all unit types saw a high of nearly 6% but ended the year at less than 2%. A healthy vacancy rate sits between 5% and 8%, Plum said.
“We're seeing rent incentives and concessions being offered across multiple unit types in order to secure tenant leases,” said Plum. “Even with that, there was slower absorption in certain segments and overall vacancy remains low by historical standards.”
The local rental market also experienced price sensitivity. One- and two-bedroom units listed between $1,800 and $2,500 rented more slowly than units priced under $1,500. The later are leasing more quickly.
“Larger amenity packages don't outweigh pricing decisions,” Plum said. “Tenants are choosing lower rent, even when higher rents include utilities and other amenities.”
One-bedroom, multi-family units saw the median price of rent increase by 5.1% in 2025 to $1,240. Two-bedroom units also climbed in 2025, seeing an 11.4% increase - the third straight year with a double-digit price increase.
Three-bedroom units stabilized in price, undergoing an average increase of 0.13% with an average rent of $2,220 dollars.
While the cost of rent steadily increased, so too did the operating costs incurred by operators.
“Operating costs remain a significant pressure point with increases in property taxes, insurance premiums, and labor and materials,” said Plum. “One of our reporting partners reported an average multi-family tax impact of roughly $70.16 per unit, per month. That type of increase affects developers bringing projects and long-term housing stability.”