Short-term rental properties are increasingly impacting local housing availability, particularly in Montana’s tourism-heavy areas near Yellowstone and Glacier national parks. A recent University of Montana report highlights that these rentals are adding strain to housing supplies, with significant growth noted from 2019 to 2023. This surge aligns with a rise in outdoor tourism activities, especially in key counties such as Gallatin and Flathead.
According to ITRR Director Melissa Weddell, “Short-term rentals in Montana present a complex situation shaped by many factors… Their influence on the housing market is highly uneven, with impacts localized and concentrated in a small number of tourism-driven counties.” The report shows that while short-term rentals make up less than 3% of Montana’s total housing stock statewide, they can reach up to 11% in areas close to national parks during peak tourism months.
Between 2019 and 2023, Montana saw a 55% increase in short-term rental listings, predominantly in Gallatin and Flathead counties. These areas also reported record nonresident visitor spending during this period. Nearly half of Montana’s 12,808 short-term rentals are in these two counties. Seasonal demand peaks in summer, with Flathead County leading with nearly 4,000 rentals in 2023.
The study notes that in Flathead County, short-term rentals comprise 6% of the housing stock on average, jumping to 7.5% in peak months. Gallatin County sees a rise from 5.05% to 5.19%, while Park County, near Yellowstone, has the highest proportion at 11.5% during peak seasons. Researchers also examined rentals resembling traditional housing, finding significant concentrations in Gallatin and Flathead counties.
Additional factors like rising construction costs and limited land availability further exacerbate housing shortages. The report identifies the COVID-19 pandemic, Montana’s population growth, and amenity migration as key drivers increasing short-term rental demand. Interviews with local officials from 11 Montana communities reveal mixed perspectives on these rentals, acknowledging both economic benefits and housing challenges.
Communities are adapting by implementing regulatory systems, such as special-use permits and “Good Neighbor” policies. The study emphasizes the need for tailored local solutions to balance economic growth and housing affordability. It concludes that short-term rentals are just one aspect of a broader housing challenge, requiring data-driven, context-specific strategies for effective management.
