In 2015, Nathan Dugan, a physical therapist, relocated to the beautiful town of Whitefish, Montana, and immediately fell in love with it. The stunning glaciers, fresh pine air, and close-knit community made it an irresistible place to call home. However, the housing prices were always high, and even more so during the pandemic. Wealthy retirees and digital nomads flocked to the town, snatching up properties with cash offers, causing a shortage of rentals and driving up prices. This housing crisis, typically associated with urban areas, was now impacting rural communities like Whitefish.
A developer saw an opportunity to capitalize on the real estate boom and proposed constructing a 318-unit community near downtown Whitefish Lake. The development would feature low-rise apartment buildings and townhomes, including units designated for low-income families. However, the proposal faced strong opposition from Whitefish residents. They flooded the planning committee with letters, and even local philanthropists threatened to withdraw support from nonprofits unless the project was scrapped. Numerous public meetings were held to debate the proposal, and ultimately, the town rejected it.
Nathan Dugan was present at the meeting and left frustrated. He noticed that most of the individuals opposing the development were older and wealthy, claiming that it would ruin their lives. However, they already had comfortable homes in Whitefish. This sparked a realization in Dugan: the “Not In My Backyard” (NIMBY) mentality had led to a housing shortage crisis across the country. Fortunately, Montana’s government recognized the severity of the problem. While Dugan had been venting his frustrations, policymakers in Helena were already devising plans to address the displacement of middle-class families, and complaints about long commutes were pouring in from Bozeman. Governor Greg Gianforte created a housing task force, which included Dugan, and together they proposed solutions to state and local officials. Montana’s legislature swiftly passed a set of bills based on their recommendations, transforming land-use policies and allowing for dense development.
Although Montana is just one state, it has taken significant steps to tackle its housing crisis. Across the country, the shortage of homes has spread from coastal cities to rural areas, leaving millions of families trapped in unaffordable apartments. The COVID-19 pandemic accelerated the trend of people leaving expensive coastal areas for more affordable regions. This migration pattern has both benefited and strained Montana. Its population grew rapidly, but the state struggled to provide enough housing, leading to skyrocketing home prices. Even before the pandemic, Montana faced housing challenges. In rural areas, residents often lived in deteriorating and unsafe units, while resort towns suffered from a scarcity of affordable housing. Additionally, the short construction season and lack of skilled tradespeople in Montana drove up costs.
The pandemic exacerbated these issues, creating a visible homeless population and a sense of strain among middle-class families. Governor Gianforte recognized that the root cause was a supply crisis and sought to remove barriers to housing development. Through the housing task force, they advocated for streamlined processes, dense development, and reduced zoning restrictions. The state’s legislature acted swiftly, passing bills that made Montana one of the most pro-development and pro-housing states in the country.
While Montana’s policies aren’t without flaws, housing experts are applauding the state’s proactive approach. These changes won’t immediately lower housing costs, as building takes time and the high interest rates have slowed down development. Additionally, Montana lacks robust tenant protections and support for struggling renters. Nonetheless, the speed and effectiveness of Montana’s housing policy changes serve as an example for other states facing similar challenges.
Ultimately, Montana’s housing crisis prompted action, and the unique nature of the state’s challenges spurred legislators to act swiftly. Through comprehensive policy reforms, Montana has positioned itself as a leader in addressing the nationwide housing shortage.
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