Research Note: The “Montana Miracle”
This is the fifth in a series of research notes written by our summer intern, Ethan, exploring different facets of housing policy, both in Nebraska and in some of our sister states.
Demand for housing in Montana’s communities has risen in recent years, and so too have housing prices. The Frontier Institute released its “Montana Zoning Atlas” in 2022, showing where lower-cost housing types were legally or practically excluded. Several zoning codes in Montana cities claimed to permit duplexes or other middle housing types; however, minimum lot size requirements excluded these housing types from practically being built.
Montana’s massive 2023 bipartisan housing package, dubbed the “Montana Miracle,” restored the right to build duplexes in many urban residential areas, preventing local governments from applying more burdensome rules to duplexes than to single-family homes. It also required cities to allow accessory dwelling units (think attached or detached mother-in-law suites), reduced discretionary hearings for compliant development, and required certain local governments to select from a menu of pro-housing zoning reforms. It also introduced parking reform, zoning reforms, and a ban on rent control.
In 2025, Montana expanded on the “Montana Miracle” by allowing for taller buildings in urban areas, preventing impact fees from increasing by more than the rate of inflation, and easing permission for manufactured homes in traditional neighborhoods and manufactured home parks.
When a lawsuit was brought questioning the state’s authority to advocate for housing reform, the court upheld much of the 2023 legislation, ruling in the state’s favor.
Montana is the most notable example of a conservative state government that is treating stringent local zoning restrictions as an infringement on individual property rights, rather than a protected expression of local control. The statewide package ultimately leaves substantial room for local regulation of infrastructure, safety, design, and planning; however, the reforms address targeted levers believed to bring more affordable housing to Montana. Nebraskans should keep a close eye on the results of Montana’s legislation and evaluate whether housing affordability in the Good Life can be achieved through similar measures.