Montana is currently grappling with a significant housing crisis that is affecting its residents deeply. With an increasing influx of newcomers and rising living costs, the state has seen its once-affordable housing landscape transformed into a competitive market. The dynamics at play illustrate not just economic hardship for long-time residents, but also the unfolding narrative of political races, as candidates begin to leverage this urgent issue to make their cases to voters.
As more and more individuals and families relocate to Montana, largely drawn by its breathtaking landscapes and widening expanse, the competition for housing has intensified. This surge in demand, coupled with a shortage of skilled labor, has led to a rapid increase in housing prices. According to the National Association of Realtors, Montana now ranks as the least affordable state for housing in the nation, with prices soaring by 66% over the past four years. For long-time Montanans, this trend has resulted in an overwhelming sense of displacement as they are priced out of the communities they have always called home.
DJ Smith, president of the Montana Association of Realtors, aptly indicates the challenges faced by Montanans: “It’s been harder and harder to find a home that meets their needs and is affordable.” This phenomenon highlights a dilemma wherein local residents are increasingly finding themselves at odds with newcomers who have the financial capacity to purchase homes in cash, thereby driving prices even higher. As these new residents sell their properties in more expensive states, they often bring considerable resources to the housing market here, skewing it in their favor.
This housing crisis has emerging political ramifications as well, especially as the Senate race heats up in Montana. Democratic Senator Jon Tester faces an uphill battle for reelection in a state that has shown significant support for Republican candidates in recent years. As the political landscape shifts, Tester has made affordable housing a key component of his campaign strategy, proposing various initiatives aimed at aiding Montanans who struggle with rising housing costs.
Conversely, Republican candidate Tim Sheehy positions himself on the opposite side, attributing the steep rise in housing prices to inflation and policy decisions made under the Biden administration. For Sheehy, the solution lies in addressing inflation rather than directly targeting housing policies. This divergence in approaches to tackling the housing crisis has turned it into a pivotal issue in an election that could determine control of the Senate.
Compounding the housing issue is Montana’s labor market, which is facing a chronic shortage in skilled tradespeople such as plumbers and electricians. This scarcity escalates the costs associated with new construction and home renovations, as builders are often left with limited subcontractor options. As Andrew Weigand, a Missoula builder, notes, “If you have a pool of three or four subcontractors, you’re going to have not as competitive a market.”
This labor shortage is particularly pressing as an aging workforce moves closer to retirement, leaving behind a gap that younger generations have yet to fill. The absence of sufficient training programs or incentives for youth to join these trades exacerbates the crisis, making it difficult to keep pace with the surging demand for new homes.
In response to the housing crisis, Tester has outlined several potential solutions, ranging from grants to assist with home repairs to tax credits aimed at incentivizing the sale of mobile home parks to local coalitions instead of developers. These proposals aim to create a more inclusive housing strategy that allows for long-time residents to maintain their stake in their communities.
Sheehy, on the other hand, calls for expanding trade programs to attract new talent into the construction industry, while maintaining that inflation must be tackled through broader economic policies. The stark difference in their methodologies reflects broader ideological divides about governance and intervention in local economies.
As the situation stands, Montanans are facing a dual threat of rising costs and political uncertainty. The outcome of the upcoming elections could dramatically reshape the landscape of housing in the state. While new initiatives are critical, only time will reveal if they are sufficient to mitigate the housing crisis that threatens the very fabric of Montana’s communities. With continued pressures from both economic and political fronts, the quest for affordable housing in Montana is far from over.