BOZEMAN — Housing has been a top issue in Bozeman for several years, according to Nathan Stein, executive director of Headwaters Community Housing Trust.
Founded in 2020, the nonprofit develops below-market housing for Bozeman’s “missing middle” — residents who don’t qualify for traditional affordable housing programs but are still priced out of the market.
“Median home price in Bozeman hovers around $800,000. The price that’s affordable to a middle-income household is closer to $400,000,” Stein said.
Headwaters raises money to sell homes at below-market prices, including the Bridger View neighborhood. Recently, the organization polled more than 400 registered voters in Bozeman.
WATCH: Bozeman housing crisis remains top voter concern ahead of municipal election
“We wanted to take the temperature on how the community is feeling about the housing crisis and if it’s still a top issue. We found it definitely is,” Stein said.
In the survey, 77% of respondents said they or someone they know has been affected by the shortage of affordable housing.
“We also wanted to take the temperature on some solutions that haven’t been tried yet,” Stein said.
According to Stein, 68% of voters expressed interest in exploring new approaches. One opportunity, he said, is voting in Bozeman’s upcoming municipal election.
“There’s a ballot initiative going out on these November ballots called WARD, which stands for Water Adequacy for Residential Development,” Stein said.
The WARD initiative is designed to link water conservation with affordable housing creation by using water rights policy as leverage. But Stein said he is concerned about its impact.
“We’re really concerned that WARD mandates a high threshold of affordability without providing the resources and subsidy to make that possible,” he said.
If WARD passes, developers would be required to make one-third of their units affordable for households earning 60% or less of the area median income.
“The fundamental problem is that the cost to develop a unit of housing is greater than the affordable price for the target population,” Stein said.
Using the Bridger View neighborhood as an example, Stein said it costs about $700,000 to develop a single home. Headwaters aims to sell those houses for around $400,000. Through nonprofit fundraising, they can cover the $300,000 gap — but Stein said this would be difficult for most private developers.
“We think WARD would ultimately make housing more expensive in Bozeman if it passes,” Stein said.
Ballots are expected to be sent out Friday and must be returned by 8 p.m. on Tuesday, Nov. 4.
