When the television show Yellowstone first hit airwaves, those who were watching it had a feeling that it was going to be something special. Years later, we know the impact that the series had on pop culture and how it allowed one television writer to create an entire universe based on the Dutton family.
However, there was an unexpected consequence as well, and financial experts are calling it the “Yellowstone effect.” The name comes from the impact that an influx of new homeowners had on the region, most of them arriving in town thanks to the television show itself. But the BBC notes that it’s more than just fans of Beth and Rip driving increased housing prices in the area. The fact that many companies adopted more robust work-from-home capabilities also played a part, since people were able to relocate to rural areas without having to worry about a lack of work.
While this was a boon for high-wage earners who were able to do their job from just about anywhere, it caused a bit of a housing crisis for local residents who can no longer afford to buy homes in the communities where they live.
And Montana isn’t the only place facing similar struggles, since rural areas across the country have seen an influx of new residents who don’t need to rely on the local job markets for work.
Local Home Values Have Skyrocketed in Rural Areas
The BBC reports that some places, like Bozeman, Montana, have seen home values rise rapidly over the years, increasing by as much as 40 percent.
According to the publication, that has changed the community in dramatic ways, making it impossible for locals to afford real estate in their own hometowns while also pushing out small businesses in favor of high-end companies that cater to the newer, wealthier residents.
Rising Home Values Are Pricing People Out in Other Rural Communities
Realtor.com says that the problems extend way beyond Montana and its die-hard Yellowstone fans. Areas like Blackford County, Indiana, and Lauderdale County, Tennessee have both seen home prices increase since the rise in remote work, with values increasing by 186 percent and 160 percent, respectively.
Housing price increases like this appear to be tied directly to people fleeing overpopulated urban areas, where they paid much more for far less in exchange for being closer to their jobs. With work-from-home options, people with high-income jobs can “commute” from anywhere and no longer have to worry about staying close to city centers (like New York) for their job.
Rural Homes Are More in Demand
According to Harvard University’s Joint Center for Housing Studies (JCHS), between 2017 to 2019, rural areas experienced a net loss of 77,900 residents. After the pandemic, that number changed dramatically, and the JCHS says that rural communities actually gained a net 540,400 people between 2021 and 2023.
The West and Northeast saw the biggest influx, and the average home value in these areas rose 40.7 percent in the West and 40.5 percent in the Northeast. The South and Midwest also saw increases, but they were more modest than their far-flung counterparts.
While a rise in demand (and home values) sounds like it should be a good thing on the surface, even as bigger businesses move in to cater to higher-paying residents, it highlights a bigger problem: Where are existing community members supposed to go?
As prices increase in areas like Bozeman, people who have lived there for decades are getting priced out. One woman who spoke with the BBC said that she could barely afford the trailer park she has called home for years due to increased lot rent, which has nearly doubled since she moved in, prompting her to ask where people are supposed to go when they can’t even afford a trailer in their own hometown.
Unfortunately, that question doesn’t appear to be one that anybody can answer just yet.