BOZEMAN — While not biblical, zoning in Montana cities like Missoula strongly influences the affordable housing crisis. Missoula Mayor Andrea Davis, a long-time advocate for affordable housing, acknowledges the city’s zoning choices have shaped its current affordability challenges. Historically prioritizing single-family homes, Missoula now faces soaring median home prices nearing $1 million, unaffordable for average households.
Missoula’s zoning history reveals a dramatic shift: in 1932, 75% of the city allowed multi-family dwellings, but today only 14% does, with most land zoned for single-family homes. This has fueled demand for apartments and condos as property prices and inflation rise, pushing rental prices up 88% from 2017 to 2024. As housing costs soared, Missoula lost workers, highlighting the urgent need for zoning reform.
In the zone
Davis notes zoning’s impact on housing availability. Missoula’s zoning once supported multi-family units, but now predominantly favors single-family homes, exacerbating the housing shortage. The gap between housing supply and demand widened as Missoula’s population grew by 10% during the COVID-19 pandemic, while housing inventory rose only 7%. The city’s response includes zoning changes to boost affordable housing development.
The good news
Missoula leaders, recognizing the city’s workforce was at risk, surveyed younger residents who favored urban living and public transportation over suburban homes. With a focus on zoning adjustments, Missoula increased affordable housing units by over 400, raising the vacancy rate to 4%. Research suggests new apartment developments can trigger a chain reaction, freeing up additional units. Missoula also eased parking and accessory dwelling unit regulations, fostering housing diversity.
Creative approaches include the Villagio project, where the city funded a retaining wall to facilitate development. Another case is the Wolf Avenue collective, where tenants formed a cooperative to purchase their historic building, preventing rent hikes. Missoula’s strategies show how zoning and creative solutions can address housing shortages and affordability.
From one city to another…
Mayor Davis shares Missoula’s insights with other cities facing similar challenges. Reducing regulatory barriers and promoting sustainable living options like biking and walking are part of Missoula’s approach. With projected growth requiring 1,400 new homes annually, streamlining the permitting process is crucial. Davis emphasizes the need for diverse housing options to accommodate changing household sizes and evolving community needs.
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