Recently, there has been an increasing trend in Billings for retirees looking to downsize their homes. One family I consulted mentioned that they had been in a standoff for months due to a large tree branch from their neighbor's yard extending over their roof, and they were exhausted from managing a single-family home. Let's take a look at cases where people are considering condos or townhomes as an alternative.

The median price for single-family homes in Billings is currently between $370,000 and $400,000 as of November 2025. Townhomes have a median listing price around $357,000, while condos range from $200,000 to $300,000, with a median listing price of about $231,000. This means there is over a $100,000 difference between single-family homes and condos, providing significant funds for those looking to downsize.

When it comes to heating costs, Montana has long, cold winters, but Northwestern Energy's rates are lower than the national average. As of January 2025, the average monthly electric bill is $123, which is lower than the national average of $134, and the average gas bill is $82, significantly lower than the national average of $254. However, this is a statewide average, and larger homes like single-family houses may incur higher costs.

Property taxes in Yellowstone County have an effective tax rate of 0.96%, with a median annual tax amount of $2,825. According to the 2025-2026 tax guidelines, for owner-occupied homes, the rate is 0.76% for homes valued up to $400,000, with rates ranging from 1.10% to a maximum of 1.90% for amounts exceeding that. It's also worth noting that investment properties or second homes are subject to a flat tax rate of 1.9% from the start.

For those aged 62 and older with a household income below $45,000, they can receive a refund of up to $1,150 through the Elderly Homeowner Credit. Seniors on a fixed income can also reduce their tax rate by 30% to 80% for homes valued up to $418,000 through the Property Tax Assistance Program (PTAP). Starting in December 2025, a new Homestead Exemption will also be available for application, which will be reflected in the 2026 taxes.

If you move to a townhome, the costs for roof or exterior wall repairs are covered by the HOA reserve fund, but if the reserve is insufficient, special assessments may be suddenly imposed. It's advisable to request and review the financial reports of the community when viewing properties. Given the heavy snowfall in winter, it's also essential to confirm whether snow removal is included in the management fees before signing a contract. Billings is relatively well-equipped with hospitals and medical infrastructure in Montana, so for retirees who need to visit hospitals regularly, this is another factor to consider.

There are also differences in insurance costs. Single-family homes often have higher homeowners insurance premiums due to larger roof and yard areas, while condos have their exterior walls and roofs insured collectively by the HOA, with those costs included in the management fees. In Billings, the inventory of townhomes and condos varies by area, such as Heights and West End, so it's efficient to first determine your desired living area and then compare properties. Northwestern Energy has applied for a rate adjustment in July 2024, with a public hearing scheduled for June 2025, and final decisions expected in November and December of that year. Since this is a time of rate adjustments, it's accurate to request the seller's recent bills for verification when viewing properties.

Considering all these exemption programs, Montana has a relatively low property tax burden compared to other western states, and the range of exemptions is broad. However, it's important to note that exemptions must be applied for and are not automatically applied.

The family that experienced conflicts with their neighbors ultimately decided to move towards a townhome. The deciding factor was that it has less management burden than a single-family home while still offering more space than a condo. Tax and exemption requirements may vary based on county and income level, so it's advisable to double-check with the Montana Department of Revenue or a professional before applying. This article does not constitute investment or legal advice.