Looking at a map of Montana would make anyone question how such an expansive state could face a housing shortage. And yet, with just a little over one million residents and an area two times the size of the UK, the state has beat California, Hawaii, and New York to be ranked the least affordable for housing in the country.

Part of the reason for Montana’s crisis can be blamed on its beauty. Hit TV shows like Yellowstone featuring sweeping scenery of mountains and rivers have attracted new residents, and remote work in the post-Covid years has made it easier for digital nomads to relocate. According to the US Census Bureau, Montana was one of the fastest growing regions in 2021. The influx of new residents combined with limited housing stock led to a 50% increase in housing prices between mid-2020 and 2021.

Resolving the housing crisis required confronting a hardened trend of NIMBY-ism that has been plaguing communities across the country. A typical story goes something like this: a developer brings proposals for new affordable housing units to local government, and then residents show up at town hall meetings to complain about how new housing will destroy the environment and increase crime. Because those who have homes outnumber those who don’t, the developers’ plans are defeated, and housing prices stay high. The only people who win are those who watch the value of their property appreciate.

Over time these micro battles on local levels have accumulated to the point that The National Association of Realtors estimates America is short 5.5 million homes. The housing crisis has been blamed for everything from decreasing birth rates to mental health problems, to rising levels of authoritarianism.

This collision of local identity with national demand plays out uniquely across the state, shaped by its diverse political makeup and deep-seated values. Ideologically, Montana is as right-wing as one would expect of a frontier region associated with “rugged individualism”. The state is governed by a Republican trifecta and is ranked highest for registered Libertarians. Added to the mix are college towns that helped Kamala Harris win 38% of the vote in the 2024 election. Underneath the Big Sky of Montana are many views about how to get things done.

In 2021, acknowledging that the housing crisis impacted everyone, Governor Greg Gianforte established a bipartisan housing task force that included environmentalists, city planners, county commissioners, student activists, and non-profit organizations.

“I said to them: Listen, I want you to cast a really broad net and bring me your best ideas,” said Gianforte.  “They came up with dozens of specific statutory changes we could make to expand the affordable housing supply, as well as regulatory relief we could execute without statutory changes.”

The task force delivered recommendations to the state legislature in the fall, and by the spring the governor signed the measures into law. Most of the proposals won’t kick in until next year, but those that are already in place have contributed to what housing activists have dubbed “The Montana Miracle.”

The first step to bypassing the NIMBYs came under the Montana Land Use Planning Act which allowed local communities to create master plans for building new housing. Once developers propose a project that matches the master plan, they receive a building permit without any public hearings.

The second was stopping the sprawl of required parking spaces that prohibited the construction of dense housing.  Starting next year, homes under 1,200 square feet in Montana’s ten largest cities will be exempt from local parking requirements. Since over 80% of apartments in the US are already below this size, the change effectively eliminates mandatory off-street parking for most multifamily buildings in those cities. Additionally, the law reduces parking mandates in smaller cities, giving property developers more flexibility in deciding how many parking spaces to provide.

Another step was loosening already loose zoning and building regulations. Single-family housing zones have been banned, and cities are prohibited from creating onerous zoning policies that could prevent development. In 2023 Democratic lawmakers proposed legislation overriding local height restrictions to allow construction of taller buildings in urban areas without special approval, and Republican-sponsored legislation eliminated administration fees that cities charge developers, which increases the cost of construction.

Other states are beginning to follow Montana’s lead. Washington, Maine, and Oregon have banned single-family zoning; and Portland, Austin, and Minneapolis have reduced parking requirements for new developments in city-limits. This month, California Governor Gavin Newsom signed two bills aimed at cutting through red tape by overhauling environmental regulations that housing advocates say have hindered the state’s housing supply.

When asked what lessons other states could learn from Montana’s swift action against the housing crisis, Governor Gianforte responded that building a broad consensus is key: “We had Democrats, Republicans, Independents, non-profits, for-profit companies, state officials — everybody was involved and we gave them a clear charge.”

Montana’s emergence as a national leader in housing reform underscores a critical lesson: real progress happens when ideological divides are set aside in favour of pragmatic, inclusive policymaking. By confronting entrenched NIMBY resistance and dismantling outdated regulations, the state has demonstrated that even deeply rural and politically divided regions can take bold, effective action.

The reforms now underway in Montana may not solve the housing crisis overnight, but they offer a blueprint for how other states might begin to tackle their own challenges—with urgency, cooperation, and a willingness to rethink the status quo. In a nation facing a staggering housing shortfall, Montana’s story is a reminder that solutions are possible—if there’s the political will to pursue them.