From grand equestrian estates to self-sustaining properties and remote ranch homes, this week’s In the Know examines why buyers flocked to spacious properties in 2023—and explores what it could mean for the real estate market in 2024 and beyond.
To get a better understanding of why buyers are seeking bigger, greener more secluded properties, we tapped team members with expensive experience in this category: Joy Vance, Managing Partner of The Agency Bozeman and Big Sky in Montana and Eric Haskell, an estates agent who handles properties from Malibu to Montecito.
Equestrian estates, sustainable properties and ranch homes were popular among buyers this past year. What do you think drew buyers to these types of properties?
Joy: As a society, we are still seeing the effects of COVID-19, and that includes the impact it has had on the real estate market and buying trends. Over the past two years, we have seen a max exodus out of bustling cities and dense areas to the more expansive rural states, including the ”Big Sky State” of Montana.
During that time, people were able to experience what a slower, nature-rich, and community-centric lifestyle is like and they liked it. We were able to witness the benefits and happiness associated with reconnecting with nature as well as having some space between you and your neighbor.
Those with the financial resources began to seek out properties that were fully sustainable with natural resources and provided ample space. We are still seeing city-dwellers with no previous ranching or farming experience curious about ranch life thanks in part to the TV drama, “Yellowstone.”
It is fantastic to watch as they learn about land and resource management and discover the importance of it. These types of properties are what we call, “legacy properties.”
Land is and always will be the most valuable asset because we cannot make any more of it, and as a result, legacy properties that have hundreds to thousands of acres, with live water, will become more and more valuable in the future.
What kinds of amenities did you see buyers seeking at these properties?
Eric: In the Los Angeles region, horse facilities, vegetable gardens, wellness areas, saunas, cold plunges and home gym facilities are certainly in high demand. Vineyards and sustainable gardening are also very popular.
Joy: Out here in Montana, live water is always the top request—whether a live spring, stream, creek, or river. Water access and water ownership make a property more valuable as it allows you to grow your own food or provide water to livestock.
Water is a hot topic in Montana and landowners are very aware of its value. Other amenities we often seek out for our clients are proximity or access to State Forest Service land or Bureau of Land Management land. These areas are federally protected and will never be developed and they provide ample opportunities for hunting and fishing.
Buyers also prefer to be adjoining land currently held in conservation easements as these are federally protected and preserve the land for conservation in perpetuity.
What are some of the areas within your region where these properties are prominent?
Eric: Here in Southern California, the Santa Ynez Valley in Santa Barbara County has many large, beautiful properties. Ojai, just north of Los Angeles is also renowned for its ranches and expansive estates surrounded by nature.
Joy: The entire state of Montana is a place to get lost in mountain ranges, forests, wide open valleys and beautiful views. Ranching and farming have been the backbone of the state, known as “Big Sky Country,” for generations and there are still generational farming and ranching families working the land.
Sometimes referred to as “the last best place,” the record sales of Montana farm and ranch land in 2021 created a tight inventory of ranches on the market, with demand and prices remaining at all-time highs through the summer of 2022.
However, there are large land parcels all throughout the state. Certain areas may be better for farming such as central and eastern Montana and other areas may be better for hunting and fishing. Depending on what the buyers’ goals are, the location, topography, and the land’s natural resources will then vary.
Do you think that buyers will continue to be attracted to these types of properties in the coming year?
Joy: Absolutely. These are legacy and generational properties. Properties that can pass from generation to generation, and depending on the property, can fully self-sustain. As the earth’s natural resources become depleted, and we continue to over-populate, these properties will become more and more rare and more and more costly.
Eric: Definitely. I believe many people are comfortable returning to cities as lockdowns ease, allowing for a normal social life. However, with the prevalence of remote work, there’s a growing appreciation for lifestyle and the outdoors. Many individuals now have the chance to seamlessly integrate work with this desired lifestyle.
Is there a certain type of buyer who is interested in these types of properties? Or is it a broad array?
Joy: I would say the buyers are a broad array. The larger ranches and land holdings are attracting high-net-worth individuals looking to provide generational wealth.
The buyers for the smaller more manageable equestrian properties are attracting all types of buyers, from young families wanting to raise their children with a connection to nature to city transplants looking for space and quiet surroundings.
Eric: In the past, buyers were often retirees or those in that life stage. However, I’ve noticed a growing interest from younger families embracing a ranch, rural, outdoor lifestyle, seeking a safer community for their children. Many are drawn to the charm of smaller towns, and there’s an increased demand for multi-generational compounds due to housing shortages and the cost of living.
See below for a few especially spacious listings in Montana.
NHN Five Ranges Ranch
The Price: $17,900,000
The Agent: Joy Vance
The Details: This 4,880+ acre ranch offers world-class elk hunting, game bird and fly fishing habitat and presents an authentic, high-end Montana ranch experience. The mountain luxury of the 8,510-square-foot main home and lodge provides ample room for guests and fellow big-game connoisseurs to use as a jump-off point for exploration.
6565 Tepee Ridge
The Price: $4,999,000
The Agent: Jeremy Seglem
The Details: Boasting expansive 360-degree vistas of the Bridger Range, this chalet-style Bridger Canyon home is set on more than 40 acres, offering a serene escape surrounded by nature. With its classic charm and modern comforts, 6565 Tepee Ridge presents a timeless blend of luxury and wilderness.
550 Tillyfour Road
The Price: $3,195,000 (IN CONTRACT)
The Agent: Jeremy Seglem
The Details: A one-of-a-kind custom home in Bozeman’s exclusive Black Bull Golf Community, 550 Tillyfour Road stretches across two lots totaling nearly 1.5 acres. The home offers an incredible indoor-outdoor living experience, with massive sliding doors opening to a covered patio that gives way to the private community pond with the Bridger Range framed in the distance.
