Montana's hot housing market heats up critical Senate race

• Sen. Jon Tester and businessman Tim Sheehy are in one of the most competitive races in the country, one that could determine which political party controls the Senate.
• Housing prices have increased 66% in Montana in the last four years, but a lack of wage increases has made the state the most unaffordable for residents.
• Out-of-staters flocking to Montana and a labor shortage have contributed to high prices.

MISSOULA, Mont. — In a subdivision near the northern edge of town, a number of condos and duplexes have popped up in the past three years.

It's part of a larger effort, including new zoning laws, to help provide affordable housing to Montanans who have found themselves priced out of the market, said DJ Smith, president of the Montana Association of Realtors.

"For Montanans, it's been harder and harder to find a home that meets their needs and is affordable," he said.

An influx of out-of-state residents relocating to the Big Sky state has sent demand soaring, while a shortage of labor keeps housing supply limited. The result is not only more condos and duplexes, but a hot-button issue in a Senate race that could ultimately decide who controls the chamber.

While some Democrats are sweating it out in close races across the country, no incumbent has a harder re-election than Democratic Sen. Jon Tester, who will need to win a state that Trump won by 16 percentage points in 2020.

Political forecaster Cook Political Report recently moved the race from a toss-up to leaning Republican, and the most recent poll from the AARP found Sheehy had an 8-point lead, just within the margin of error.

Tester has made housing a cornerstone of his campaign — specifically how to help Montanans who have been priced out as more people have