Missoula Reporter Reflects on 2025 Housing Challenges and Future Outlook

As 2025 ends, Montana Free Press reporters review their work from the year and plan for upcoming stories in 2026.

This year, coverage from MTFP’s Missoula reporter primarily centered on housing and homelessness challenges.

Reports included the phased closure of the Johnson Street homeless shelter and the effort to permanently house residents within five months. A new report revealed a connection between homelessness and criminal justice involvement. The Watershed Navigation Center, focusing on aiding those reentering society post-incarceration, illuminated this link further.

Affordability and housing shortages were pivotal in discussions around city land use planning. Following December 2024’s adoption of the Our Missoula 2045 Land Use Plan, a new unified development code was unveiled. This code integrates zoning, subdivision, public works, and parks regulations, allowing for more multifamily housing to meet population growth.

Housing was a significant topic in the 2025 Missoula municipal elections, with candidates debating development balance and housing needs.

Proposals to enhance housing supply featured in the Missoula This Week newsletter, highlighting developments like Riverfront Triangle and Midtown Commons.

WHAT’S ON THE HORIZON IN 2026?

Observations will continue on housing debates as the new year unfolds.

In January, new council members Betsy Craske, Justin Ponton, Sean Patrick McCoy, and Jennifer Savage will join the council, focusing on development code amendments.

Attention will also be on 2025-announced developments, assessing impacts from construction costs or tariffs.

Federal policy changes could affect affordable housing project funding. After announcing grant requirement changes, HUD paused the policy for revisions. Updates on these changes will continue to be monitored for impacts on Montana.

Federal policy shifts on homelessness and housing affordability will remain crucial as Missoula groups assist those from the shuttered Johnson Street shelter and families facing housing challenges.