Should You Build Now in Montana or Wait?

I get asked this question all the time: “Should we start building now or wait until prices come down?”

It’s a fair question, especially after the last few years. Between rising interest rates, higher material costs, and unpredictable supply chains, a lot of people are nervous about starting their custom home. I’ve been building in Montana long enough to know there’s never a perfect time to build, but there is a smart way to decide when the timing is right for you.

Here’s what I’ve seen happening in the Montana housing market and how to think through whether you should build now or hold off.

1. Construction Costs Have Stabilized, Not Dropped

A few years ago, material prices were swinging wildly. One week you’d get a quote on lumber, and the next week it would be 30 percent higher. Those days have mostly passed. Prices have leveled out, but they haven’t really gone back down.

Right now, costs have settled into a steady range. Concrete, lumber, and insulation prices are more consistent, but they’re still higher than before 2020. Labor costs have increased too, mostly because skilled trades are in short supply across Montana.

If you’re waiting for prices to drop back to what they were years ago, that probably won’t happen. The market has found a new baseline, and the builders who adapt and plan around that reality are the ones keeping projects on track.

2. Interest Rates Are a Factor, But Not the Whole Story

Higher interest rates are the main reason people hesitate right now, and I understand why. Rates have climbed from historic lows to numbers we haven’t seen in years.

But here’s what I tell clients: rates are temporary, and the home you build is permanent. If you can afford your project at today’s rate, you can refinance later when rates drop. What you can’t do is go back in time to buy land or build before prices rise again.

Over the last year, I’ve seen several clients wait for rates to fall, only to find that construction costs or land prices went up in the meantime. Their total monthly payment would have ended up almost the same either way.

If the numbers work for you now, that’s usually a good sign that it’s the right time to build.

3. Montana’s Housing Demand Isn’t Slowing Down

Even with higher interest rates, Montana’s housing market is still strong. People are moving here for the lifestyle, the scenery, and the space. That’s not changing anytime soon.

Around Helena, we continue to see steady demand for land and new construction. The inventory of existing homes remains low, which keeps new builds in demand.

That means even if the market slows down a bit, land and building costs aren’t likely to drop much. In areas like the Helena Valley, Canyon Ferry, and Broadwater County, demand is still outpacing supply.

4. Waiting Has Its Own Costs

I’ve seen clients wait a year hoping to save money, only to end up spending more later. Even when materials stay the same price, other costs keep climbing. Building codes change, permits increase, and insurance rates go up.

Inflation plays a big role too. Every year, the same house costs more to build simply because everything around it has gone up.

If you already own your land and know where you want to build, waiting doesn’t usually save much unless you’re expecting a major market correction. And in Montana, those are rare.

5. Why Now Can Still Be a Smart Time to Build

From a builder’s point of view, the best time to plan a project is before everyone else jumps back in. When rates eventually drop again, there will be a rush of people trying to build at the same time. That means longer wait times for materials, tighter schedules, and more competition for crews.

Starting now, while things are calmer, lets you secure your place in the schedule and lock in your pricing before the next wave of demand.

We’ve had clients use this time to finalize designs, line up financing, and get permits ready so they can move quickly when they decide to go. That kind of preparation pays off.

6. How to Decide What’s Right for You

The timing depends on your financial situation and comfort level, but here’s what I’ve seen work best:

• If you already own land and have financing available, now is a good time to move forward.

• If you’re still saving or waiting on another property sale, use this time to design and plan your build.

• If you’re mainly worried about interest rates, focus on building what you can comfortably afford and refinance later when rates improve.

The key is to keep making progress instead of pausing completely. Even getting started on design or permitting keeps you a step ahead when the timing feels right.

Final Thoughts

After years of building in Montana, I’ve learned that timing rarely makes or breaks a project. Preparation does. When you plan carefully, choose a builder who communicates clearly, and build something that fits your long-term needs, you’ll be glad you didn’t wait.

At JCH Construction & Development Inc., we help clients across Helena and the surrounding areas plan smart, budget realistically, and build with confidence. We’ll walk you through real costs, schedules, and financing options so you can decide the right time to move forward.

Contact Us for a free pre-build consultation. We’ll walk you through realistic cost expectations, site requirements, and design options tailored to your property.