Making a Difference in Billings, Montana

"We were honored to have The Counselors of Real Estate in Billings meeting with a diverse group of stakeholders and helping ensure that our community continues to take action and tackle our housing need. We are not a community to sit back and just see what happens.  We are a community of action, and we are delighted to have the thoughtful recommendations of experts to guide us."

Brandon Treese, Billings Association of Realtors® Economic Development Chair

"We are so grateful that Billings had the opportunity to benefit from the expertise of The Counselors of Real Estate. The focused, diligent attention of the Consulting Corps team gave us great ideas and pointed to meaningful opportunities to address our housing needs."

Amber Parish, Executive Officer, Billings Association of Realtors®

Client: The City of Billings, Montana, has a population of approximately 120,000 people. Situated in south central Montana, within Yellowstone County (pop. 170,000), Billings has a diversified economy, providing services to a 500-mile region. The Billings Association of Realtors® and its 1300 members serve a 29-county region. Through Transforming Neighborhoods, the National Association of REALTORS® (NAR) partnered with The Counselors of Real Estate® Consulting Corps and issued a call for proposals for strategic real estate problem solving. The project submitted by the Billings Association of REALTORS® in conjunction with Billings-area stakeholders was selected.

 

Challenge: While Billings is often considered relatively affordable, the gap between typical salary and typical home price has increased dramatically in recent years. The median home sale price in Billings rose by 50.9% between 2018 and 2023, increasing from $248,500 to $375,000. Stated another way, the number of homes selling at $201,000 to $299,000 has dropped by 75% during this five-year time period. Furthermore, the number of homes priced under $200,000 is down by 84% over the same timeframe. The Billings Association of REALTORS® estimates an annual deficit of as many as 1,300 units. That translates to a dramatic shortage of affordable, workforce, and family housing. No financeable housing stock exists at the price point needed to achieve first-time home ownership. The lack of supply is impeding economic development as private and public employers struggle to recruit and retain a workforce. The Counselors of Real Estate® Consulting Corps was asked to analyze the housing situation in Billings and recommend action steps that could assist the City of Billings and area stakeholders in fostering increased production of housing that would meet the needs of working families.


Assessment: In August, 2024, the Consulting Corps team visited Billings, toured potential development sites and the broader Billings area, examined demographic and economic data, and interviewed more than 40 stakeholders. The stakeholders include the City of Billings, Yellowstone County, business leaders, economic development professionals, community groups, the Billings Association of REALTORS®, developers and home builders, and community land trusts.

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Findings:

A repeated theme heard by the Consulting Corps team was that Billings offers a good quality of life for all generations. However, quality of place has been affected by the shortage of attainable housing. Housing options priced for early career workers and first-time homebuyers are severely lacking. Additionally, four of the top five occupations in Billings (approximately 29,000 people) do not provide enough income to buy a median priced home, which is now close to $400,000. Because the trajectory of lack of affordable supply continues to widen the affordability gap, there must be an accelerated housing plan for consistent, sustainable delivery to maintain, if not grow, the economic base of Greater Billings.

Billings can accelerate housing initiatives by capitalizing on state programs and particularly embracing the comprehensive approach outlined in the Governor’s Housing Task Force recommendations of June 2024. Now is great timing for Billings to proactively implement a local plan that mirrors the state recommendations. An approach that builds collaborations and incorporates public private partnerships is essential for implementation success. The private market alone cannot solve this problem.

The Consulting Corps recommends the following immediate action steps:

  1. Deploy new state workforce housing matching funds. Passage of HB 819 authorizes housing funds to the counties; the state funds, matched by local resources, totals $17 million for Yellowstone County.
  2. Define and promote infill site opportunities.
  3. Facilitate infill development.
  4. Speed up the development review process.
  5. Establish a starter home program with well-advertised outreach.
  6. Empower small scale activity with design-build toolkits, rehab programs, and pipeline to multiple developers.
  7. Engage stakeholders in strategic planning.
  8. Consider hiring a housing director to coordinate and source available sites, developers, and public funding sources.
  9. Define goals and track outcomes.

Actions speak louder than words. A collaborative effort that leverages the commitment of the broad range of dedicated stakeholders, clarifies community vision, and builds on this community’s pride and identity can yield meaningful outcomes. A clear identity and commitment to housing will attract new sponsors (developers and home builders), investors (healthcare and mining), and new business. Housing is economic development. Providing increased housing options for local residents and workers will continue to foster economic stability and growth in Greater Billings. This call to action must be navigated with dedicated leadership organized for long-term sustainability. The time is NOW.

 

“Billings and the greater region have a real opportunity to accelerate housing inventory for a growing workforce population by implementing Infill Development approvals.  Public Private Partnerships can take maximum advantage of state housing incentives.  Enthusiastic stakeholders and strong community support will make all the difference.  How exciting to embrace this now.” 

Wendy Timm, CRE, Billings Consulting Corps Team Leader

 


L to R: Dana Rowan, CRE, Michael Christensen, CRE, Wendy Timm, CRE, Roger Sherman, CRE, Amber Parish, Billings Association of Realtors® CEO, Mark Reiling, CRE

 

Team: The team was led by Wendy Timm, CRE, Keystone, Colorado. Panelists were Michael Christensen, CRE, Salt Lake City, Utah; Mark Reiling, CRE, Minneapolis, Minnesota; Dana Rowan, CRE, Boston, Massachusetts; Roger Sherman, Los Angeles, California.

 

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