Montana pushes housing reforms to combat rising home prices

In 2023, Montana's state legislature initiated a series of housing reforms known as the 'Montana Miracle' aimed at addressing the housing crisis in the state. These reforms were created in response to the ongoing challenges of increasing home prices and limited housing availability. Following these initial measures, the legislature revisited the issue in 2025 to bolster and expand the existing regulations. The updated legislation included provisions that altered impact fees charged to developers, required local governments to harmonize laws concerning manufactured housing, and modified regulations surrounding accessory dwelling units (ADUs). Impact fees, which are one-time charges levied on developers to offset the burden on existing public resources caused by new constructions, were refined through Senate Bill 133. This bill stipulated that such fees must align with established state guidelines and could only increase at a rate commensurate to inflation. The goal is to ensure that the fees accurately reflect the impact caused by new developments, thus lessening the financial burden on current residents. Additionally, Senate Bill 252 mandated the equal treatment of manufactured homes in zoning laws, allowing these homes to be treated comparably to traditional homes in communities across Montana. The legislation also made considerable adjustments to the existing regulations governing ADUs. The previously enacted Senate Bill 528 was revised under Senate Bill 532, reflecting the critiques that emerged during the initial rollout. The changes allowed for more flexibility in the construction of ADUs, including permitting single-exit stairways in multi-unit buildings up to six stories tall. However, restrictions were put in place regarding the number of required parking spaces, specifically that municipalities with large populations could only require one parking space per unit or half a parking space for units smaller than 1,200 square feet. These reforms represent a critical step toward addressing the housing crisis in Montana; however, many of the new regulations will not take effect until October 1, 2026. As the situation develops, it remains uncertain how effective these measures will be in mitigating the housing supply issues and lowering property prices. Continued scrutiny and further analysis will be necessary to evaluate the impact of the 'Montana Miracle' reforms over time. While the immediate reaction from residents has included some concerns about development encroaching on established neighborhoods, the legislature is dedicated to finding solutions that balance growth and community interests.