Rising short-term rental properties in Montana, particularly near Yellowstone and Glacier National Parks, are straining local housing supplies. A recent University of Montana report highlights the growth of short-term rentals and local regulatory responses. This phenomenon is most pronounced in tourism-heavy counties, raising concerns about housing availability.
“Short-term rentals in Montana present a complex situation shaped by many factors, with tourism representing only one piece of a much larger puzzle,” stated ITRR Director Melissa Weddell. Although these rentals make up less than 3% of statewide housing, they reach 11% in some gateway communities during peak months. Their impact is concentrated in a few tourism-driven counties.
From 2019 to 2023, Montana saw a 55% rise in short-term rentals, especially in Gallatin and Flathead counties. This growth aligns with increased outdoor tourism. These properties notably affect housing availability in already expensive counties. Nearly half of Montana’s 12,808 short-term rentals are in Gallatin and Flathead. Seasonal demand peaks in summer, with Flathead leading nearly 4,000 listings in 2023.
Flathead and Gallatin Counties reached summer peaks of 70,000 and 50,000 monthly bookings, respectively, with Flathead’s 2023 bookings nearly doubling 2018 levels. Statewide, short-term rentals averaged 2.4% of housing stock, rising to 2.8% during peak months. However, Flathead County shows a 6% average, climbing to 7.5% during peak times. Gallatin County’s rates increase modestly, while Park County stands out with 11.5% in September 2023.
Researchers narrowed their focus to traditional housing-like rentals. Under this lens, Gallatin and Flathead lead with 2,337 and 1,988 listings, respectively. Park County still shows significant impact, with rentals at 6.2% during peak months. Other factors such as rising construction costs and limited land also contribute to housing shortages. The study identified three key contributors to increased short-term rental demand: COVID-19, Montana’s nearly 5% population growth, and amenity migration from remote workers.
The report, a follow-up to a 2020 study, involved interviews with officials from 11 Montana communities. They acknowledged the dual role of short-term rentals in supporting tourism and creating housing challenges. Communities have adopted regulatory systems, such as permits and “Good Neighbor” policies, to manage these impacts. “Short-term rental policies are one of several tools communities can use to address housing pressures,” Weddell noted. The study emphasizes the need for locally tailored solutions, balancing housing affordability with economic opportunities.
Despite these findings, the report notes a “lack of comprehensive data” directly linking short-term rentals to housing displacement or affordability issues. “Short-term rentals represent one piece of a complex housing puzzle,” the study concludes, suggesting that effective housing strategies require continuous monitoring and adaptable regulations to ensure both residents and economies thrive.
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