The City of Bozeman hopes to alleviate the very full rental and affordable housing situation in the coming year through regulation changes and increasing inventory. The Bozeman Department of Community Development has begun a review of current home building standards while starting development of new subdivisions and apartment complexes.
A rental housing survey released this year reported that the vacancy rate in Bozeman was essentially zero at the time MSU students came back for fall semester. Gallatin County saw a huge population growth rate from 2002-2012 when it grew 32 percent. In a report released this month, it was one of the fastest growing counties in the Western United States. Coupled with MSU’s largest student body in its history, Bozeman found itself at rental capacity.
Cheaper housing also became less affordable due to demand from first time buyers who saw mortgage rates and rental rates become close enough to take the plunge. Investors hoping to open up some home space in a “no vacancy” rental market also pushed demand higher on the cheaper housing in the area.
The city plans on deferring or subsidizing impact fees on homes, allowing more flexible dimensions, while reviewing current mobile home ordinances to help lower the costs of home ownership in town. Several subdivisions have also begun development in the outskirts of town to increase the total inventory of available homes to the city’s residents, while subsidized affordable housing has also been employed in several cases. The city hopes that changes in regulations, increased construction and new subdivisions will help avoid the situation seen this past September.
Hart Real Estate Solutions