More housing — not just affordable housing — is needed to control rising unaffordability, according to a report issued by the Urban Land Institute.

Climate change, immigration policy, the Covid-19 pandemic and local land-use regulations are all factoring into what has culminated as a housing crisis in America, said officials with the global real estate and land use organization at a presentation in Kalispell on Jan. 17.  

Over two dozen bankers, real estate agents, residents, developers and representatives of local nonprofits attended the talk, held in the Arts and Technology Building at Flathead Valley Community College. Presenters discussed two reports detailing regional post-pandemic housing issues and a national forecast for the 2025 real estate market.  

Rosie Hepner, vice president of the Urban Land Institute’s Terwilliger Center for Housing, gave an overview of an annual report providing insight on housing prices and comparing how different cities have tackled workforce housing. 

While the number of households — the person or people who would live under one roof — were increasing, units were not, the report found.  

“For a functioning and healthy housing market, we should be adding one new unit per new household, and most places are not doing that,” Hepner said. 

Implementing more zoning reform, making small regulatory changes and building on vacant, underutilized land were policy solutions presented in the Home Attainability Index for 2024.  

According to the 2025 index, which will be published next month, Kalispell ranked third nationally for largest change in new home costs between 2020 and 2023. Kalispell’s median monthly mortgage for a new home rose from around $1,538 to $2,368, a 54% change. Bozeman, Boise City, Coeur d’Alene and Idaho Falls made up the rest of the top five.  

“It’s all here, it’s happening here,” Hepner said.  

There has been an increase in the number of people looking for homes over two years, but not as much in units, Hepner said. That’s putting a squeeze on the rental market and driving up home costs. 

“If you can’t buy and you are stuck renting, you can see that the cost of renting is increasing and it’s spreading,” Hepner said. 

Erica Wirtala, public affairs director for the Northwest Montana Association of Realtors, said during a panel discussion that Flathead County has limited space to develop — 70% of the county is undevelopable, she said — and that is paired with the buildup of second homes that comes with being a tourist destination.  

A lack of starter homes has also made it difficult for employers to hold on to employees that can’t afford to live in the county, added Kim Morisaki, executive director of the Northwest Montana Community Land Trust. 

Flathead County’s area median income in 2024 was $88,400, according to government-sponsored enterprise Fannie Mae. Kalispell’s median home price stands at around $530,000, according to data from the Northwest Montana Association of Realtors.  

In Flathead County, there are 36 homes on the market between $300,000 and $400,000, Wirtala said.  

“I’ll bet you they’re big fixer uppers. So not a lot out there for people,” she said.  

The Covid-19 pandemic spurred rapid change in resort community housing markets, Hepner said. Higher earners moved to typically tourist destinations unequipped to house year-round residents, causing prices to jump.  

“It really shows that housing is an economic issue,” Hepner said.  

Affordable housing developments can come in different shapes and sizes, she said, giving an example of Aspen shipping in modular homes for temporary workers.  

“Families aren’t going to live in this, but we thought it was unique for that situation,” Hepner said. 

Molly McCabe, founder and CEO of HaydenTanner, presented findings from the Emerging Trends in Real Estate 2025 report, which provides a big picture look at national housing and real estate market trends. The report is an accumulation of interviews and survey results from over 2,000 industry experts.  

McCabe said that climate change intensified its impact on the real estate industry more than survey participants thought. While more movement toward the Sun Belt was expected, migration patterns showed people shifting north to places less affected by climate risks. 

Ben Kaiser, a partner at LSW Architects, presented a modular home design he said would tackle both housing affordability and environmental issues by using timber from decommissioned mills.  

Kaiser called engineered wood the panacea of building materials.  

“They breathe, they’re structurally amazing, they’re insulated,” he said.  

McCabe also said that immigration has been the primary driver of population growth in the U.S. between 2010 and now. But restricting it comes with its own risks.  

“Without immigration the U.S. faces potential labor shortages that could cycle growth, reduce demand for homes and commercial spaces and raise construction labor prices,” she warned.  

Reporter Jack Underhill can be reached at 758-4407 and [email protected].