Matti Olson, NonStop Local, 12/05/24
MISSOULA, Mont. – Affordable housing remains a pressing issue in Montana, with home prices rising significantly. The Montana Association of Realtors reports that the median home price has increased by nearly 90% over the past five years.
Governor Greg Gianforte recently proposed a biennium budget aimed at addressing this issue. The budget includes funding for the Montana Housing Fund, which the state legislature will evaluate in the new year.
Missoula has taken steps to address housing challenges, including passing an amendment to ban urban camping in city-run parks. However, officials continue to seek solutions for the city's high population of unhoused residents.
In October 2024, Missoula reported 644 households experiencing homelessness. Missoula Mayor Andrea Davis discussed potential funding and programs to combat the housing crisis.
"We have Montanans suffering today, and we have a zillion suffering today. Not being able to afford their rent, not being able to buy their first home, and choosing possibly to move somewhere else because they're ready to do that," Davis said.
Governor Gianforte's budget proposes a 15% decrease in property taxes for Montana homeowners through a homestead rate reduction. It also allocates an additional $100 million to expand the Housing Infrastructure Revolving Loan Account via the Homes Act and $12 million annually for the Montana Housing Fund through the Department of Commerce.
Mayor Davis highlighted Missoula's use of the Housing Infrastructure Loan Program for local projects like the Scott Street Ravara project, which added 89 homes, half of which are designated as "workforce housing."
Davis emphasized the importance of addressing renters' needs, as 31% of Montana's population are renters, according to the Montana Budget and Policy Center.
"In 2025, there is an opportunity to address that through funding different capital programs and to make sure that there are state resources that are helping local municipalities and communities continue to address building more affordable homes and attainable homes. And the other thing I will say is that we need to preserve existing affordable homes," Davis stated.
Missoula plans to support multiple housing and tax-related bills in the upcoming legislative session.
MBPC is a nonprofit organization focused on providing credible and timely research and analysis on budget, tax, and economic issues that impact low- and moderate-income Montana families.