‘Montana Miracle:’ The State Actually Succeeding at Housing Reform

Over the last two years, Montana has made some unexpected gains in zoning reform. According to a piece by Emily Hamilton in Governing, the state’s ambitious legislative reforms could serve as a model for other states where demand for affordable housing outpaces supply.

In 2023, Montana passed a series of state laws aimed at increasing housing construction that included allowing ADUs and legalizing multifamily housing in commercial zones. In a lawsuit questioning the state’s authority, a court ruled in favor of the state, upholding most of the 2023 reforms. “Not only do state policymakers have the authority to limit local zoning rules, they have an obligation to do so when these restrictions cause statewide affordability problems.”

This year, the legislature doubled down, expanding on the 2023 law and eliminating parking requirements for most units in the state’s 10 largest cities. A new law also eases permitting for manufactured home parks to eliminate the need for a subdivision review when these parks are not subdivided into private lots. Another allows single-staircase buildings up to six stories, making it easier to build denser buildings on smaller lots.