HomeMy WebLinkAbout01-26-26 - Community Development Board - Agendas & Packet MaterialsA. Call to Order - 6:00 pm
B. Disclosures
C. Changes to the Agenda
D. Approval of Minutes
D.1 Approval of Minutes(Ruffalo)
E. Action Items
E.1 Annexation and Zone Map Amendment Requesting Annexation and the Establishment of an
Initial Zoning Designation of R-1 on 1.173 Acres, the 1071 Story Mill Road Annexation,
Application 25525(Rogers)
THE COMMUNITY DEVELOPMENT BOARD OF BOZEMAN, MONTANA
CDB AGENDA
Monday, January 26, 2026
General information about the Community Development Board is available in our Laserfiche
repository.
If you are interested in commenting in writing on items on the agenda please send an email to
comments@bozeman.net or by visiting the Public Comment Page prior to 12:00pm on the day of the
meeting. At the direction of the City Commission, anonymous public comments are not distributed to
the Board or staff.
Public comments will also be accepted in-person and through video conference during the appropriate
agenda items.
As always, the meeting will be streamed through the Commission's video page and available in the
City on cable channel 190.
For more information please contact Chris Saunders, csaunders@bozeman.net
This meeting will be held both in-person and also using an online video conferencing system. You
can join this meeting:
Via Video Conference:
Click the Register link, enter the required information, and click submit.
Click Join Now to enter the meeting.
Via Phone: This is for listening only if you cannot watch the stream, channel 190, or attend in-
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Approve
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F. Public Comments on Non-agenda Items Falling within the Purview and Jurisdiction of the Board
G. FYI/Discussions
G.1 Transmittal of 2025 Q2 Economic and Market Update (Saunders)
G.2 Upcoming Items for the February 2, 2026, Community Development Board
Meeting(Saunders)
H. Adjournment
Having reviewed and considered the staff report, application materials, public comment, and all
information presented, I hereby adopt the findings presented in the staff report for application 25525
and move to recommend approval of the 1071 Story Mill Road Zone Map Amendment, with
contingencies required to complete the application processing.
This is the time to comment on any non-agenda matter falling within the scope of the Community
Development Board. There will also be time in conjunction with each agenda item for public
comment relating to that item but you may only speak once per topic.
Please note, the Community Development Board cannot take action on any item which does not
appear on the agenda. All persons addressing the Community Development Board shall speak in a
civil and courteous manner and members of the audience shall be respectful of others. Please
state your name, and state whether you are a resident of the city or a property owner within the
city in an audible tone of voice for the record and limit your comments to three minutes.
General public comments to the Board can be found in their Laserfiche repository folder.
This board generally meets the first and third Monday of the month from 6:00 pm to 8:00 pm.
City Board meetings are open to all members of the public. If you have a disability that requires
assistance, please contact our ADA Coordinator, David Arnado, at 406.582.3232.
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Memorandum
REPORT TO:Community Development Board
FROM:Trenton Ruffalo
SUBJECT:Approval of Minutes
MEETING DATE:January 26, 2026
AGENDA ITEM TYPE:Minutes
RECOMMENDATION:Approve
STRATEGIC PLAN:1.1 Outreach: Continue to strengthen and innovate in how we deliver
information to the community and our partners.
BACKGROUND:None
UNRESOLVED ISSUES:None
ALTERNATIVES:Approve with corrections
FISCAL EFFECTS:None
Attachments:
121525 CDB Minutes.pdf
111725 CDB Minutes.pdf
Report compiled on: January 5, 2026
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Bozeman Community Development Board Meeting Minutes, 12.15.25
Page 1 of 2
THE COMMUNITY DEVELOPMENT BOARD MEETING OF BOZEMAN, MONTANA
MINUTES
December 15th, 2025
General information about the Community Development Board is available in our Laserfiche repository.
A) 00:05:38 Call to Order - 6:00 pm Present: Jennifer Madgic, Ben Lloyd, Henry Happel, Chris Egnatz, Jason Delmue, Mark Egge
Absent: None
Excused: Courtney Johnson
Member Lloyd was not present for Roll Call, but arrived later
B) 00:06:15 Disclosures
C) 00:06:22 Changes to the Agenda
D) 00:06:27 Approval of Minutes
D.1 Minutes
111725 CDB Minutes.pdf
120125 CDB Minutes.pdf
00:06:36 Motion to approve Approval of minutes 11.17.25 and 12.01.25 with caveat that amended
motions have the correct text per the Clerk's standard of practice.
Mark Egge: Motion
Jennifer Madgic: 2nd
00:09:01 Vote on the Motion to approve Approval of minutes 11.17.25 and 12.01.25 with caveat that
amended motions have the correct text per the Clerk's standard of practice. The Motion carried 5 - 0.
Approve:
Jennifer Madgic, Henry Happel, Chris Egnatz, Jason Delmue, Mark Egge
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Bozeman Community Development Board Meeting Minutes, 12.15.25
Page 2 of 2
Disapprove:
None
E) 00:09:25 Public Comments on Non-agenda Items Falling within the Purview and
Jurisdiction of the Board
F) 00:10:26 FYI/Discussions
F.1 00:10:39 Upcoming Items for Possible Review at the January 5, 2026, and January
26, 2026 Community Development Board Meetings
00:11:00 Board decides there will be no meeting 01.05.26. Next Board meeting will be 01.26.26.
F.2 00:12:12 Report on City Commission Action on Ordinance 2151 Repeal and
Replace Chapter 38, Unified Development Code Including Text and Zoning Map to
Comply with the Montana Land Use Planning Act and Implement the Bozeman
Community Plan, Application 21381
00:14:31 Member Lloyd arrives
G) 00:27:56 Adjournment
This board generally meets the first and third Monday of the month from 6:00 pm to 8:00 pm.
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Bozeman Community Development Board Meeting Minutes, 11.17.25
Page 1 of 10
THE COMMUNITY DEVELOPMENT BOARD MEETING OF BOZEMAN, MONTANA
MINUTES
November 17th, 2025
General information about the Community Development Board is available in our Laserfiche repository.
A) 00:05:16 Call to Order - 6:00 pm Present: Jennifer Madgic, Ben Lloyd, Henry Happel, Chris Egnatz, Jason Delmue, Mark Egge
Absent: None
Excused: Courtney Johnson
B) 00:06:10 Disclosures
C) 00:06:20 Changes to the Agenda
D) 00:06:39 Approval of Minutes
D.1 Minutes
110325 CDB Minutes.pdf
E) 00:06:41 Action Items
00:09:46 Chris Saunders presents to the Board
E.1 00:06:45 Ordinance 2151 Repeal and Replace Chapter 38, Unified Development
Code Including Text and Zoning Map to Comply with the Montana Land Use Planning Act
and Implement the Bozeman Community Plan, Application 21381
21381 Staff Report UDC Replacement 2025 - CDB.pdf
Process and New Code Review Criteria for Amendments Memo.pdf
Staff Recommended Revisions to Sept 19, 2025 UDC Draft.pdf
21381 UDC Repeal and Replacment CDB and CC Legal Newspaper Notice.pdf
MLUPA Code Compliance Summary 10-27-2025.pdf
SB382 MLUPA City Commission summary July 25, 2023.pdf
Group Engagement Log -10-27-2028.pdf
Framing System Raised Heel Trusses.pdf
USFWS critical-habitat-fact-sheet.pdf
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Bozeman Community Development Board Meeting Minutes, 11.17.25
Page 2 of 10
BOZ UDC_Zoning District Conversion Guide_10.17.2025.pdf
38.520.040 - Egnatz motion illustration.pdf
UDC edits for 11-17 v3 JD.pdf
00:10:35 Motion to approve Motion to remove Member Egnatz's revision (11/03/25) of the modulation
of building facade from the table.
Henry Happel: Motion
Jennifer Madgic: 2nd
00:10:51 Vote on the Motion to approve Motion to remove Member Egnatz's revision (11/03/25) of the
modulation of building facade from the table and take it up for active consideration. The Motion carried
6 - 0.
Approve:
Jennifer Madgic, Ben Lloyd, Henry Happel, Chris Egnatz, Jason Delmue, Mark Egge
Disapprove:
None
00:11:41 Motion to approve Update division 38.520 UDC Building Design Standards as captured in the
Redline draft included in the package and the materials submitted with this agenda. Primary updates
include: Facade modulation & roof-line elevation changes are now obligatory design strategies within
the code. Building walls facing rear or side yards will required to employ 2 articulation strategies, even
when abutting same property or intensity zones, and roof-line elevations changed and increased from
1ft to 2ft (11/03/25).
Chris Egnatz: Motion
Jennifer Madgic: 2nd
00:23:51 Vote on the Motion to approve Update division 38.520 UDC Building Design Standards as
captured in the Redline draft included in the package and the materials submitted with this agenda.
Primary updates include: Facade modulation & roof-line elevation changes are now obligatory design
strategies within the code. Building walls facing rear or side yards will required to employ 2 articulation
strategies, even when abutting same property or intensity zones, and roof-line elevations changed and
increased from 1ft to 2ft (11/03/25). The Motion carried 6 - 0.
Approve:
Jennifer Madgic, Ben Lloyd, Henry Happel, Chris Egnatz, Jason Delmue, Mark Egge
Disapprove:
None
00:30:30 In reference to: 38.530.040.B Minimum required motor vehicle parking- Effective
through 09/30/2026
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Bozeman Community Development Board Meeting Minutes, 11.17.25
Page 3 of 10
00:30:30 Motion to approve Regarding State Parking Mandates as presented in current UDC Draft: this
Board recommends to the City Commission the code section 38.530.040.B be removed from the draft
code (11/17/25).
Jason Delmue: Motion
Jennifer Madgic: 2nd
00:32:45 Vote on the Motion to approve Regarding State Parking Mandates as presented in current UDC
Draft: this Board recommends to the City Commission the code section 38.530.040.B be removed from
the draft code (11/17/25).
The Motion failed 1 - 5.
Approve:
Mark Egge
Disapprove:
Jennifer Madgic, Ben Lloyd, Henry Happel, Chris Egnatz, Jason Delmue
00:52:20 Motion to amend Regarding Sketch plans for infill duplexes: To have the Main motion
(11/03/25) to include an addition recommendation to City Commission that the Sketch Plan Review
thresholds for in-fill sites be increased from 1 to 2 units
Mark Egge: Motion
Ben Lloyd: 2nd
00:54:51 Vote on the Motion to amend Regarding Sketch plans for infill duplexes: To have the Main
motion (11/03/25) to include an addition recommendation to City Commission that the Sketch Plan
Review thresholds for in-fill sites be increased from 1 to 2 units The Motion carried 6 - 0.
Approve:
Jennifer Madgic, Ben Lloyd, Henry Happel, Chris Egnatz, Jason Delmue, Mark Egge
Disapprove:
None
00:56:18 In reference to increase in RB density: Increasing the number of allowed dwelling units
in a single building in RB to 12 instead of 8 as currently proposed
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Bozeman Community Development Board Meeting Minutes, 11.17.25
Page 4 of 10
00:56:18 Motion to amend That this Board recommend to the City Commission to increase maximum
allowed units in a building in RB 12 instead of the 8 that are in the current draft
Jason Delmue: Motion
Mark Egge: 2nd
01:06:25 Vote on the Motion to amend That this Board recommend to the City Commission to increase
maximum allowed units in a building in RB 12 instead of the 8 that are in the current draft The Motion
failed 3 - 3.
Approve:
Henry Happel, Jason Delmue, Mark Egge
Disapprove:
Jennifer Madgic, Ben Lloyd, Chris Egnatz
01:11:17 Motion to approve That this Board recommend to the City Commission to delete the maximum
number of units in a building in RC. Friendly Amendment by Member Egge to apply the removal of the
maximum number of units in RC to affordable housing developments only (11/17/25)
Jason Delmue: Motion
Jennifer Madgic: 2nd
01:21:20 Vote on the Motion to approve That this Board recommend to the City Commission to delete
the maximum number of units in a building in RC. Friendly Amendment by Member Egge to apply the
removal of the maximum number of units in RC to affordable housing developments only (11/17/25) The
Motion carried 6 - 0.
Approve:
Jennifer Madgic, Ben Lloyd, Henry Happel, Chris Egnatz, Jason Delmue, Mark Egge
Disapprove:
None
01:32:30 Motion to approve Regarding RA cap to 4 units per acre: Recommend to the City Commission
that more than a duplex or an ADU should be allowed, in general, within the RA district for initial
construction (11/17/25).
Jason Delmue: Motion
Mark Egge: 2nd
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Bozeman Community Development Board Meeting Minutes, 11.17.25
Page 5 of 10
01:44:15 Vote on the Motion to approve Regarding RA cap to 4 units per acre: Recommend to the City
Commission that more than a duplex or an ADU should be allowed, in general, within the RA district for
initial construction (11/17/25).
The Motion failed 1 - 5.
Approve:
Jason Delmue
Disapprove:
Jennifer Madgic, Ben Lloyd, Henry Happel, Chris Egnatz, Mark Egge
02:05:02 Motion to approve Recommend to the City Commission that the UDC not include a street-
facing entrance requirement (11/17/25).
Mark Egge: Motion
Ben Lloyd: 2nd
02:05:39 Vote on the Motion to approve Recommend to the City Commission that the UDC not include a
street-facing entrance requirement (11/17/25). The Motion carried 6 - 0.
Approve:
Jennifer Madgic
Ben Lloyd
Henry Happel
Chris Egnatz
Jason Delmue
Mark Egge
Disapprove:
None
02:34:05 Motion to approve as amended To recommend to the City Commission designate the
Centennial Neighborhood as RA zone in the future Zone Map
Amendment. Motion revised by Egnatz to include PLI & RC as designated in the draft map presented by
the City (11/17/25).
Chris Egnatz: Motion
Jennifer Madgic: 2nd
02:40:43 Motion to amend Amend the previous motion to make the zone of the Centennial
Neighborhood as RB instead of RA (11/17/25).
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Bozeman Community Development Board Meeting Minutes, 11.17.25
Page 6 of 10
Mark Egge: Motion
Jason Delmue: 2nd
02:44:46 Vote on the Motion to amend Amend the previous motion to make the zone of the Centennial
Neighborhood as RB instead of RA (11/17/25). The Motion carried 4 - 2.
Approve:
Ben Lloyd, Henry Happel, Jason Delmue, Mark Egge
Disapprove:
Jennifer Madgic, Chris Egnatz
02:47:45 Vote on the Motion to approve as amended To recommend to the City Commission designate
the Centennial Neighborhood as RA zone in the future Zone Map
Amendment. Motion revised by Egnatz to include PLI & RC as designated in the draft map presented by
the City (11/17/25). The Motion carried 4 - 2.
Approve:
Ben Lloyd, Henry Happel, Jason Delmue, Mark Egge
Disapprove:
Jennifer Madgic, Chris Egnatz
02:47:45 Clerk Clarification: The final motion to recommend to the City Commission designate the
Centennial Neighborhood as RB zone in the future Zone Map
Amendment. Motion revised by Egnatz to include PLI & RC as designated in the draft map presented by
the City (11/17/25).
03:13:18 Motion to approve That this Body recommend to the City Commission that R4 area (BonTon
Neighborhood) located south of downtown Bozeman, from S. 4th Ave to the alley between Wilson &
Tracy not be downzoned and instead become RC per the conversion system (11/17/25).
Jason Delmue: Motion
Mark Egge: 2nd
03:14:52 Vote on the Motion to approve That this Body recommend to the City Commission that R4 area
(BonTon Neighborhood) located south of downtown Bozeman, from S. 4th Ave to the alley between
Wilson & Tracy not be downzoned and instead become RC per the conversion system (11/17/25). The
Motion carried 4 - 2.
Approve:
Henry Happel, Chris Egnatz, Jason Delmue, Mark Egge
Disapprove:
Ben Lloyd, Jennifer Madgic
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Bozeman Community Development Board Meeting Minutes, 11.17.25
Page 7 of 10
03:19:27 Motion to approve To leave the existing language in 38.410.010.B as currently set forth in the
new UDC draft (11/17/25)
Henry Happel: Motion
Mark Egge: 2nd
03:26:36 Vote on the Motion to approve To leave the existing language in 38.410.010.B as currently set
forth in the new UDC draft (11/17/25) The Motion carried 6 - 0.
Approve:
Jennifer Madgic, Ben Lloyd, Henry Happel, Chris Egnatz, Jason Delmue, Mark Egge
Disapprove:
None
03:53:23 In reference to Fraternities and Sororities
03:53:23 Motion to approve as amended Motion to recommend edits to 38.320.030 General Residential
Uses as outlined (#7 Fraternities and Sororities) in the accessory document that is part of public
comment (11/17/25).
Chris Egnatz: Motion
Jennifer Madgic: 2nd
03:57:07 Motion to amend The previous motion to exclude the parking requirement for Fraternities and
Sororities (11/17/25)
Jason Delmue: Motion
Henry Happel: 2nd
03:57:28 Vote on the Motion to amend The previous motion to exclude the parking requirement for
Fraternities and Sororities (11/17/25) The Motion carried 4 - 2.
Approve:
Ben Lloyd, Chris Egnatz, Jason Delmue, Mark Egge
Disapprove:
Jennifer Madgic, Henry Happel
03:59:22 Vote on the Motion to approve as amended Motion to recommend edits to 38.320.030 General
Residential Uses as outlined (#7 Fraternities and Sororities) in the accessory document that is part of
public comment (11/17/25). The Motion carried 5 - 1.
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Bozeman Community Development Board Meeting Minutes, 11.17.25
Page 8 of 10
Approve:
Jennifer Madgic, Ben Lloyd, Henry Happel, Chris Egnatz, Mark Egge
Disapprove:
Jason Delmue
03:59:22 Clerk Clarification: the final motion is to recommend edits to 38.320.030 General
Residential Uses as outlined, excluding parking requirements, (#7 Fraternities and Sororities) in the
accessory document that is part of public comment
04:10:21 Motion to approve This Board recommends to City Commission the elimination of the
requirement for amenity space (section 380.260.040) and commercial open space in B3 (11/17/25)
Mark Egge: Motion
Jason Delmue: 2nd
04:14:27 Vote on the Motion to approve This Board recommends to City Commission the elimination of
the requirement for amenity space (section 380.260.040) and commercial open space in B3 (11/17/25)
The Motion failed 2 - 3.
Approve:
Jason Delmue, Mark Egge
Disapprove:
Jennifer Madgic, Ben Lloyd, Henry Happel, Chris Egnatz
04:15:13 Zone Edge Transitions (no motion)
04:33:20 B1 Standards 38.220.020 (no motion)
04:45:31 Motion to approve This Board recommends to the City Commission to implement the staff
recommended revisions to the September 19th 2025 UDC Draft that was circulated to this Board and
discussed (11/17/25).
Jason Delmue: Motion
Ben Lloyd: 2nd
04:46:03 Vote on the Motion to approve This Board recommends to the City Commission to implement
the staff recommended revisions to the September 19th 2025 UDC Draft that was circulated to this Board
and discussed (11/17/25). The Motion carried 6 - 0.
Approve:
Jennifer Madgic, Ben Lloyd, Henry Happel, Chris Egnatz, Jason Delmue, Mark Egge
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Bozeman Community Development Board Meeting Minutes, 11.17.25
Page 9 of 10
Disapprove:
None
04:53:01 Vote on the Motion (Motion made 11.03.25 at 02:15:30) to amend having reviewed and
considered the staff report, draft ordinance, public comment, and all information presented, I hereby
adopt the findings presented in the staff report for application 21381 and move to recommend adoption
of Ordinance 2151 with revisions as recommended by Staff. The Motion carried 6 - 0.
Approve:
Jennifer Madgic, Ben Lloyd, Henry Happel, Chris Egnatz, Jason Delmue, Mark Egge
Disapprove:
None
04:53:36 Motion to approve CDB states to the Commission that the Current Draft (September 2025),
plus whichever of the CDB-recommended edits are accepted – and acknowledging that any or all of the
recommended edits might not be accepted – will be a significant improvement over the code currently
in place as well as achieve compliance with MLUPA and therefore recommends to the Commission to
approve Application 21381 as however revised by the Commission (11/17/25)
Jason Delmue: Motion
Mark Egge: 2nd
04:54:19 Vote on the Motion to approve CDB states to the Commission that the Current Draft
(September 2025), plus whichever of the CDB-recommended edits are accepted – and acknowledging
that any or all of the recommended edits might not be accepted – will be a significant improvement over
the code currently in place as well as achieve compliance with MLUPA and therefore recommends to the
Commission to approve Application 21381 as however revised by the Commission (11/17/25)
The Motion carried 6 - 0.
Approve:
Jennifer Madgic, Ben Lloyd, Henry Happel, Chris Egnatz, Jason Delmue, Mark Egge
Disapprove:
None
04:55:48 Vote on the Motion to approve having reviewed and considered the staff report, draft
ordinance, public comment, and all information presented, I hereby adopt the findings presented in the
staff report for application 21381 and move to recommend adoption of Ordinance 2151 with
recommended revisions. The Motion carried 6 - 0.
The Motion carried 6 - 0
Approve:
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Bozeman Community Development Board Meeting Minutes, 11.17.25
Page 10 of 10
Jennifer Madgic, Ben Lloyd, Henry Happel, Chris Egnatz, Jason Delmue, Mark Egge
Disapprove:
None
F) 04:57:58 Public Comments on Non-agenda Items Falling within the Purview and
Jurisdiction of the Board
G) 04:58:19 FYI/Discussions
H) 04:59:58 Adjournment
This board generally meets the first and third Monday of the month from 6:00 pm to 8:00 pm.
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Memorandum
REPORT TO:Community Development Board
FROM:Tom Rogers, Senior Planner
Chris Saunders, Community Development Manager
Erin George, Director of Community Development
SUBJECT:Annexation and Zone Map Amendment Requesting Annexation and the
Establishment of an Initial Zoning Designation of R-1 on 1.173 Acres, the
1071 Story Mill Road Annexation, Application 25525
MEETING DATE:January 26, 2026
AGENDA ITEM TYPE:Community Development - Legislative
RECOMMENDATION:Having reviewed and considered the staff report, application materials,
public comment, and all information presented, I hereby adopt the findings
presented in the staff report for application 25525 and move to recommend
approval of the 1071 Story Mill Road Zone Map Amendment, with
contingencies required to complete the application processing.
STRATEGIC PLAN:4.2 High Quality Urban Approach: Continue to support high-quality planning,
ranging from building design to neighborhood layouts, while pursuing urban
approaches to issues such as multimodal transportation, infill, density,
connected trails and parks, and walkable neighborhoods.
BACKGROUND:The applicant, 45 Architecture & Interiors, and the property owner, Great
Northern Golf Company of Montana, seek to annex property into the City
limits and establish initial zoning of R-1, Low Density Residential. Golf
courses and support activities are permitted use in the R-1 district through
the Special Use Permitting process.
The property is currently zoned M-1, Light Industrial, in the Gallatin County
Bozeman Area Zoning district. There are multiple structures on the property
all without water and sewer service. The property owners intend to continue
the current use of this property while gaining access to essential services
such as water and sewer. Since the property is currently dry, the owners
have relied on temporary restroom facilities on site or directed employees
to use facilities at the clubhouse on McIlhattan Road.
The Bozeman Community Plan 2020 (BCP2020) designates this and the
surrounding property as Urban Residential on the Future Land Use Map. The
R-1 district is an implementing district of this land use classification.
UNRESOLVED ISSUES:There are no identified conflicts on this application.
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ALTERNATIVES:1. Approve the application with contingencies as presented;
2. Approve the application with modifications to the recommended
zoning;
3. Deny the application based on findings of non-compliance with the
applicable criteria contained within the staff report; or
4. Open and continue the public hearing, with specific direction to staff or
the applicant to supply additional information or to address specific items.
FISCAL EFFECTS:No unusual fiscal effects have been identified. No presently budgeted funds
will be changed by this Annexation or Zone Map Amendment.
Attachments:
25525 Story Mill Annex_ZMA CDB.pdf
Report compiled on: January 14, 2026
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Page 1 of 42
25525 Staff Report for the 1071 Story Mill Road Annexation and ZMA
Public Hearings: Planning Commission (map amendment only) January 26, 2026
City Commission (Annexation and map amendment) February 10, 2026
Project Description: 1071 Story Mill Road Annexation requesting annexation of 1.173
acres and amendment of the City Zoning Map for the establishment of a zoning
designation of R-1 (Residential Low-Density District), Application 25525.
Project Location: Property addresses as 1071 Story Mill Road and more particularly
described as two parcels of land as described in Warranty Deed Film 151, Page
3806, Document No. 302254 - Parcel 1 and Parcel 2; situated in the Southeast
One-Quarter (SE ¼) of Section 31, Township 1 South, Range 6 East, Principal
Meridian, Gallatin County, Montana.
Staff Finding: Meets standards for approval with terms of annexation and
contingencies.
Recommended Zoning Commission Motion: Having reviewed and considered the staff
report, application materials, public comment, and all information presented, I
hereby adopt the findings presented in the staff report for application 25525 and
move to recommend approval of the 1071 Story Mill Road Zone Map Amendment,
with contingencies required to complete the application processing.
Recommended City Commission Annexation Motion: Having reviewed and
considered the staff report, application materials, public comment, and all
information presented, I hereby adopt the findings presented in the staff report
for application 25525 and move to approve the 1071 Story Mill Road Annexation
subject to the terms of annexation and direct staff to prepare an annexation
agreement.
Recommended City Commission Zoning Motion: Having reviewed and considered the
staff report, application materials, public comment, recommendation of the
Zoning Commission, and all information presented, I hereby adopt the findings
presented in the staff report for application 25525 and move to approve the 1071
Story Mill Road Zone Map Amendment with contingencies of approval necessary
to complete adoption of an implementing ordinance.
Report Date: January 12, 2026
Staff Contact: Tom Rogers, Senior Planner
Agenda Item Type: Action - Legislative
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Staff Report for the 1071 Story Mill Road Annexation and ZMA, No. 25525 Page 2 of 42
EXECUTIVE SUMMARY
This report is based on the application materials submitted and public comment
received to date. This report addresses both the zoning amendment for Community
Development Board acting in their capacity as the Zoning Commission, as well as the
annexation and the zoning amendment for the City Commission. The application
materials are available on the City’s website in the laserfiche archive.
Unresolved Issues
There are no identified conflicts on this application.
Project Summary
The applicant and property owners seek to annex two existing parcels consisting of 1.173
acres into the City limits and establish an initial zoning of R-1 (RA), Residential Low-
Density District. The property is currently zoned M-1, Light Manufacturing, within the
County administered Gallatin County Bozeman Area Zoning District (the Donut). This
application was deemed complete before the passage of the updated Bozeman
Community Plan and the effective date of the update to Chapter 38, Unified
Development Code. Therefore, review is being completed under the prior documents
and criteria. Recognizing the upcoming change in zoning, references to zoning districts
include the new districts in parenthesis where appropriate for clarity.
As stated by the applicant, “The Great Northern Golf Company of Montana intends to
continue the current use of this property while gaining access to essential services such
as water and sewer. Since the property is currently dry, the owners have relied on
temporary restroom facilities on site or directed employees to use facilities at the
clubhouse on McIlhattan Road. With Gallatin County’s population growth and the rising
demand for outdoor recreation, Bridger Creek Golf Course has experienced steady
increases in number golfers’ season after season. This growth has required additional
maintenance staff, and planning for long-term employee needs has become a priority.”
Golf courses and support services are a permitted us in the R-1 district with an approved
Special Use Permit. Golf courses are permitted use in the R-A and R-B districts with a
special use permit in the recently adopted Unified Development Code (UDC). The
existing use will not change as a result of annexation and zoning, but any future changes
will be subject to municipal standards and processes.
The Future Land Use Map in the Bozeman Community Plan (BCP) 2020 designates the
property as “Urban Neighborhood” which includes the R-1 (RA) district as implementing
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Staff Report for the 1071 Story Mill Road Annexation and ZMA, No. 25525 Page 3 of 42
zoning districts. Adjacent municipal zoning includes B-2M to the east, R-1(RA) and R-3
(RB) to the north and west, and another inholding of un-annexed property to the south.
The proposed annexation would provide additional rights-of-way for Story Mill Road.
In determining whether the criteria applicable to this application are met, Staff considers
the entire body of plans and regulations for land development. Standards which prevent
or mitigate possible negative impacts are incorporated in many locations in the
municipal code but are principally in Chapter 38, Unified Development Code.
References in the text of this report to Articles, Divisions, or in the form xx.xxx.xxx are to
the Bozeman Municipal Code.
Community Development Board (Zoning Commission) Summary
The Community Development Board acting in their capacity as the Zoning Commission
will hold a public hearing on January 26, 2026, and will forward their recommendation to
the City Commission.
No public comment has been received on this application at the time of publication of
this report.
Alternatives
1. Approve the application with contingencies as presented;
2. Approve the application with modifications to the recommended zoning;
3. Deny the application based on findings of non-compliance with the applicable
criteria contained within the staff report; or
4. Open and continue the public hearing, with specific direction to staff or the
applicant to supply additional information or to address specific items.
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TABLE OF CONTENTS
EXECUTIVE SUMMARY ............................................................................................. 2
Unresolved Issues .............................................................................................. 2
Project Summary ................................................................................................ 2
Community Development Board (Zoning Commission) Summary .......................... 3
Alternatives ........................................................................................................ 3
SECTION 1 - MAP SERIES: ......................................................................................... 5
SECTION 2 - RECOMMENDED TERMS OF ANNEXATION ........................................... 11
SECTION 3 - RECOMMENDED CONTINGENCIES OF ZONE MAP AMENDMENT ........... 13
SECTION 4 - RECOMMENDATION AND FUTURE ACTIONS ........................................ 14
Annexation ....................................................................................................... 14
Zone Map Amendment ...................................................................................... 14
SECTION 5 - ANNEXATION STAFF ANALYSIS AND FINDINGS..................................... 14
SECTION 6 - ZONE MAP AMENDMENT STAFF ANALYSIS AND FINDINGS .................... 18
APPENDIX A - NOTICING AND PUBLIC COMMENT ................................................... 39
APPENDIX B - PROJECT GROWTH POLICY AND PROPOSED ZONING ........................ 40
APPENDIX C - OWNER INFORMATION AND REVIEWING STAFF ................................. 42
FISCAL EFFECTS .................................................................................................... 42
ATTACHMENTS ...................................................................................................... 42
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SECTION 1 - MAP SERIES:
Map 1: Project Vicinity Map
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Map 2: Future Land Use Designation
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Map 3: Current Zoning Map
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Page 8 of 42
Map 4: Applicant Annexation Map
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Map 5: Zoning Map – large geographic scale
Subject
Property
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Map 6: Residential Density, 2023 Data
Subject Property
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Page 11 of 42
SECTION 2 - RECOMMENDED TERMS OF ANNEXATION
The following terms of annexation are recommended to enable the application to comply
with the City’s Annexation Policy and the requirements of state law for the provision of
services.
Recommended terms of annexation:
1. The documents and exhibits to formally annex the subject property must be
identified as the “1071 Story Mill Road Annexation”.
2. An Annexation Map, titled “1071 Story Mill Road Annexation Map” with a legal
description of the property and any adjoining un-annexed rights-of-way and/or
street access easements must be submitted by the applicant for use with the
Annexation Agreement. The map must be supplied as a PDF for filing with the
Annexation Agreement at the County Clerk & Recorder, and a digital copy for the
City Engineers Office. This map must be acceptable to the Director of Public
Works and City Engineers Office and must be submitted with the signed
Annexation Agreement.
3. The applicant must execute all contingencies and terms of said Annexation
Agreement with the City of Bozeman within 60 days of the distribution of the
annexation agreement from the City to the applicant or annexation approval shall
be null and void.
4. The landowners and their successors must pay all fire, street, water, and sewer
impact fees at the time of connection; and for future development, as required by
Chapter 2, Bozeman Municipal Code, or as amended at the time of application
for any permit listed therein.
5. If they do not already exist, the applicant must provide and file with the County
Clerk and Recorder's office executed Waivers of Right to Protest Creation of
Special Improvement Districts (SIDs) for the following:
a. Street improvements to Story Mill Road between Boyland Road and Bridger
Drive including lighting, signalization, paving, curb/gutter, sidewalk, shared
use path and storm drainage.
b. Intersection improvements to Story Mill Road and Boyland Road including
lighting, signalization/channelization, paving, curb/gutter, sidewalk, shared
use path and storm drainage.
6. The document filed must specify that in the event an SID is not utilized for the
completion of these improvements, the developer agrees to participate in an
alternate financing method for the completion of the improvements on a fair
share, proportionate basis as determined by square footage of property, taxable
valuation of the property, traffic contribution from the development, or a
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combination thereof. The Annexation Agreement must include the following
notices:
a. The Annexation Agreement must include notice that, prior to development,
the applicant will be responsible for preparing a storm water master plan in
conjunction with future development. The storm water master plan shall
address maintenance and operations until and unless the City affirmatively
assumes responsibility for maintenance and operations of stormwater
facilities within the area of the annexation.
b. The Annexation Agreement must include notice the City will, upon annexation,
make available to the Property existing City services only to the extent
currently available, or as provided in the Agreement.
c. The Annexation Agreement must include notice that there is no right, either
granted or implied, for Landowner to further develop any of the Property until
it is verified by the City that the necessary municipal services are available to
the property.
d. The Annexation Agreement must include notice that, prior to development,
the applicant will be responsible for installing any facilities required to provide
full municipal services to the properties in accordance with the City of
Bozeman's infrastructure master plans and all City policies that may be in
effect at the time of development.
e. The Annexation Agreement must include notice that utility easements may be
required to be provided by the landowner at the time of development to ensure
necessary municipal services are available to the property.
f. The agreement must include notice that charges and assessments may be
required after completion of annexation to ensure necessary municipal
services are available to the property.
g. The Annexation Agreement must include notice that the City will assess
system development and impact fees in accordance with Montana law and
Chapter 2, Article 6, Division 9, Bozeman Municipal Code.
h. All procedural terms necessary to establish the Annexation Agreement in
conformance with state law and municipal practice will be included with the
final Annexation Agreement.
7. The Annexation Agreement must include notice that the applicant must connect
to municipal services and will be responsible for installing any facilities required
to provide full municipal services to the property in accordance with city policy at
the time of connection.
8. City of Bozeman Resolution 5076, Policy 2 — Story Mill Road is classified as
Collectors in the Bozeman Transportation Master Plan (TMP), which has a
minimum right-of-way ROW width of 90 feet. The applicant must provide their half
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along the property frontage by easement prior to the adoption of Resolution of
Annexation. The easement must be executed using the city's standard language.
9. The applicant must contact the City’s Engineering Department to obtain an
analysis of cash-in-lieu of water rights for the proposed annexation. The
determined amount must be paid prior to the adoption of Resolution of
Annexation, if applicable.
10. All final easements provided to the City must be stamped and signed by a
professional surveyor.
SECTION 3 - RECOMMENDED CONTINGENCIES OF ZONE MAP
AMENDMENT
Please note that these contingencies are necessary for the City to complete the process
of the proposed amendment. These contingencies only apply in the event that the
related annexation request has previously been approved.
Recommended Contingencies of Approval:
1. That all documents and exhibits necessary to establish an initial municipal zoning
designation shall be identified as the “1071 Story Mill Road Annexation Zone Map
Amendment.” All required documents must be returned to the City within 60 days of
the City Commission action to annex the property or the preliminary approval shall
be null and void.
2. That the Ordinance for the Zone Map Amendment shall not be finalized until the
Annexation Agreement is signed by the applicant and formally approved by the City
Commission. If the annexation agreement is not approved, the Zone Map
Amendment application shall be null and void.
3. That the applicant must submit a Zone Amendment map, titled “1071 Story Mill Road
Annexation Zone Map Amendment”. The map must be supplied as a PDF. This map
must be acceptable to the City Engineer’s Office and must be submitted within 60
days of the action to approve the zone map amendment. Said map shall contain a
metes and bounds legal description of the perimeter of the subject property including
adjacent rights-of-way or street easements, and total acreage of the property to be
rezoned, unless the property to be rezoned can be entirely described by reference to
existing platted properties or certificates of survey.
4. The Ordinance for the Zone Map Amendment shall not be drafted until the applicant
provides an editable mete and bounds legal description prepared by a licensed
Montana surveyor.
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SECTION 4 - RECOMMENDATION AND FUTURE ACTIONS
Annexation
Having considered the criteria established for an annexation, the Development Review
Committee (DRC) did not find any deficiencies that prohibit annexation at this time that
could not be addressed through future development review processes and adopted City
Codes.
The City Commission will hold a public meeting on the annexation on February 10, 2026.
The meeting will begin at 6 p.m.
Zone Map Amendment
Having considered the criteria established for a zone map amendment, the Staff found
the requested zoning meets standards for approval as submitted. The Zone Map
Amendment (ZMA) is in conjunction with an annexation request. Staff’s
recommendation and staff responses are predicated on approval of the annexation,
application 25525.
The Development Review Committee (DRC) considered the amendment. The DRC did
not identify any infrastructure or regulatory constraints that would impede the approval
of the application that cannot be addressed with adopted standards and requirements
for future development.
The Community Development Board acting in their capacity as the Zoning Commission
will hold a public hearing on this zone map amendment on January 26, 2026, and will
forward a recommendation to the City Commission on the zone map amendment. The
meeting will begin at 6 p.m. in the Commission Room at City Hall, 121 N. Rouse Ave,
Bozeman, Montana.
The City Commission will hold a public meeting on the zone map amendment on
February 10, 2026. The meeting will begin at 6 p.m. in the Commission Room at City Hall,
121 N. Rouse Ave, Bozeman, Montana. The City Commission will conduct a public
hearing on the proposed Zone Map Amendment application.
SECTION 5 - ANNEXATION STAFF ANALYSIS AND FINDINGS
In considering applications for approval of the requested annexation, the advisory
boards and City Commission shall consider the following:
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Commission Resolution No. 2025-07 Policies [External Link]
Policy 1: Annexations must include dedication of all rights of way for collector and
arterial streets, public water, sanitary sewer, or storm or sewer mains. When
required, rights of way for anchor routes as recognized in the City’s adopted parks
and trails plans, must be provided when such anchor routes are not located within
the right of way for arterial or collector streets.
Criterion met. Story Mill Road is classified as a Collector in the Bozeman Transportation
Master Plan (TMP), which has a minimum right-of-way ROW width of 90 feet. The
applicant must provide their half of the right of way along the property frontage prior to
the adoption of Resolution of Annexation. The easement must be executed using the
city's standard language. As shown on the revised annexation map, the required right-
of-way is identified. See Term of Annexation 8.
A shared use path and Anchor Route are identified adjacent to Story Mill Road in the
Parks, Recreation, and Active Transportation Plan (PRAT). The additional right-of-way to
be provided by easement will accommodate the pathway if or when constructed.
Policy 2: Annexations may be required to include dedication of rights of way for
adjacent or internal local streets to complete street connectivity and provide
required legal and physical access.
Criterion met. Access is provided by Story Mill and Boylan Roads within dedicated rights-
of-way granted through the subdivision process. As noted above, additional, rights-of-
way is required for Story Mill Road. Internal roads. Although it is unlikely additional right-
of-way will be required with future development, no additional local street network is
required for compete street connectivity or physical access. Additional internal streets,
if needed, will be required with subsequent site plan and/or subdivision review.
Policy 3: Annexations must include written waivers of a property owner’s right to
protest the creation of special improvement districts necessary to provide essential
services. The waivers must run with the land, be binding on the owner and owner’s
successors in interest and be recorded concurrently with the annexation agreement.
Criterion met. Waivers of the right to protest creation or improvement districts are
accounted for in the terms of annexation. These include street and intersection
improvements identified by the Engineering Department. See term of Annexation 5.
Policy 4: The petition for annexation must be in conformance with the current
Bozeman land use plan (growth policy). If a land use plan (growth policy)
amendment is necessary for anticipated land uses, the land use plan amendment
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process must be completed prior to any action for approval of a petition for
annexation.
Criterion Met. The property is designated “Urban Neighborhood” on the future land use
map. No growth policy amendment is required. The application includes a request for
initial zoning of R-1(R-A). See the zone map amendment section of this report for analysis
of the zone map amendment criteria.
Policy 5: The City prefers petitions for annexation of land larger than five acres.
However, the City will consider annexation of smaller areas of land when one or
more of the following are present: topographic limitations; the land is served by one
or more City utilities; septic system failure; extension and integration of
transportation infrastructure; enhancement of the existing traffic circulation
system or to provide for transportation systems that do not currently exist;
annexation will make the City boundaries more regular; annexation will better
incorporate unannexed property for the provision of City fire, police, and emergency
services; or when annexation provides improved access to and maintenance of
public facilities.
Criterion Met. The two lots total 1.173 acres. The policy prefers larger annexation
although acknowledge a variety of unique situations influence the determination to
annex. In this case the City desires to fill “inholdings” that are wholly surrounded by city
limits. These properties are dependent on city infrastructure and services. The
annexation requires additional rights-of-way to accommodate the City’s long term
transportation plan on Story Mill. And finally, annexation will better incorporate
provisions of fire, police, and emergency services.
Policy 6: The City will review infrastructure and emergency services available to an
area proposed for annexation for the health, safety and welfare of the public and
conformance with the City’s adopted plans. If the City determines adequate
services cannot be provided to ensure public health, safety and welfare, the City
may deny the petition for annexation. Alternatively, the City may require all property
owners within the land to be annexed provide a written plan for accommodation of
services at the expense of the property owner(s). The land to be annexed may only
be provided sanitary sewer service via the applicable drainage basin defined in the
City Wastewater Collection Facilities Plan.
Criterion Met. City infrastructure and emergency services are available to the subject
property. An existing 6-inch ductile iron water pipe is in Story Mill Road to the east and
Boylan Road to the north.
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Wastewater collection pipe bounds the property on east and north with ample capacity
to serve the site.
Any future development will be required to connect to the City systems. The property is
located adjacent to existing urban development that is currently served by Bozeman Fire.
Per Term of Annexation 7, the Annexation Agreement required to finalize the requested
annexation will require the applicant to design extensions of services to meet the City’s
adopted infrastructure standards. These include provisions for minimum water pressure
and volumes, adequate sewer flows by volume, gravity flow of sewers, and other
standards necessary to protect public health and safety and ensure functional utilities.
Policy 7: The City may require annexation of any contiguous property for which City
services are requested or for which City services are currently being provided. In
addition, any person, firm, or corporation receiving water or sewer service outside of
the City limits is required as a condition of initiating or continuing such service, to
record a consent to annexation of the property serviced by the City.
The property is not currently provided City services. No emergency connection is
requested. Access to water and sewer service is the purpose of the annexation. City
services will be required to be provided concurrent with future development. Terms of
Annexation 6 and 9 address connection to services.
Policy 8: The City Manager may enter into an agreement with a property owner for an
emergency connection to the City’s sanitary sewer or water system. In doing so, the
property owner must submit a petition for annexation and file a notice of consent to
annex with the Gallatin County Clerk and Recorder’s Office prior to connection to
City utilities. The City will prepare the notice of consent to annex. The agreement for
connection to City sewer or water must require the property owner to complete
annexation or consent to disconnection of the services. Connection for purposes of
obtaining City sewer services in an emergency requires, when feasible as
determined by the City, the connection to City water services.
Emergency connection is not being requested or required.
Policy 9: The use of Part 46 annexations is preferred.
This annexation is being processed under Part 46 provisions.
Policy 10: Where a road improvement district has been created, annexation does
not repeal the creation of the district. The City will not assume operations of a road
improvement district until the entirety of the district has been annexed. Any funds
held in trust for the district will be used to benefit the district after transfer to the
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City. Inclusion within a district does not absolve a landowner of the obligation to
participate in general City programs that address the same subject.
No road improvement district is associated with this application.
Policy 11: The City requires connection to and use of City utilities and services upon
development of annexed properties. The City may establish a fixed time frame for
connection to municipal services. Upon development, unless otherwise approved
by the City, septic systems must be properly abandoned and the development must
be connected to the City sanitary sewer system. Upon development, unless
otherwise approved by the City, water wells on the subject property may be used for
irrigation but must be disconnected from any structure. Potable water must be
supplied from the City water distribution system. The property owner must contact
the City Water and Sewer Division to verify disconnection of wells and septic
systems.
There is an existing structure on the subject property without on-site well and septic
system. All redevelopment and further development requiring sanitary sewer or water
will be required to connect and use city utilities. A term of annexation requires
connection to municipal water and sewer implements this policy. Terms of Annexation
6 and 9 address these issues.
Policy 12: All annexations must be contiguous with or wholly surrounded by the
existing City boundary. The City Commission may agree to annex property that is not
contiguous or wholly surrounded. If the land to be annexed is not contiguous to or
wholly surrounded by the City, the reasoning and justification for annexation must
be explicitly addressed within the petition and approved by the Commission prior to
adoption of a Resolution of Annexation.
This criterion is met. The property in question is contiguous to the City limits. The
property is bounded on the north and east sides by City limits. Further, the property is
wholly surrounded by city limits.
SECTION 6 - ZONE MAP AMENDMENT STAFF ANALYSIS AND FINDINGS
Application 25525 was deemed sufficient for continued review prior to the effective date
of the revised Bozeman Unified Development Code on February 1, 2026, and Bozeman
Land Use plan, see Resolution 2025-71. Therefore, it is reviewed under the previous
review criteria as described below.
In considering applications for plan approval under this title, the advisory boards and
City Commission must consider the following criteria (letters A-K). As an amendment is
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a legislative action, the Commission has broad latitude to determine a policy direction.
The burden of proof that the application should be approved lies with the applicant.
A zone map amendment must be in accordance with the growth policy (criteria A) and be
designed to secure safety from fire and other dangers (criteria B), promote public health,
public safety, and general welfare (criteria C), and facilitate the provision of
transportation, water, sewerage, schools, parks and other public requirements (criteria
D). Therefore, to approve a zone map amendment the Commission must find Criteria A-
D are met.
In addition, the Commission must also consider criteria E-K, and may find the zone map
amendment to be positive, neutral, or negative with regards to these criteria. To approve
the zone map amendment, the Commission must find the positive outcomes of the
amendment outweigh negative outcomes for criteria E-K.
In determining whether the criteria are met, Staff considers the entire body of plans and
regulations for land development. Standards which prevent or mitigated negative
impacts are incorporated throughout the entire municipal code but are principally in
Chapter 38, Unified Development Code.
Section 76-2-304, MCA (Zoning) Criteria
A. Be in accordance with a growth policy.
Criterion met. The Bozeman Community Plan (BCP) 2020, Chapter 5, p. 73, in the section
titled Review Criteria for Zoning Amendments and Their Application, discusses how the
various criteria in 76-2-304 MCA are applied locally. Application of the criteria varies
depending on whether an amendment is for the zoning map or for the text of Chapter 38,
BMC. The first criterion for a zoning amendment is accordance with a growth policy.
Future Land Use Map
The proposed amendment is a change to the zoning map. Therefore, it is necessary to
analyze compliance with the future land use map. Chapter 3 of the BCP 2020 addresses
the future land use map. The introduction to that chapter discusses the importance of
the chapter. Following are some excerpts.
“Future land use is the community’s fundamental building block. It is an
illustration of the City’s desired outcome to accommodate the complex and
diverse needs of its residents.”
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“The land use map sets generalized expectations for what goes where in the
community. Each category has its own descriptions. Understanding the future
land use map is not possible without understanding the category descriptions.”
The area of this application is within the anticipated growth area of the City. As shown on
the maps in Section 1, on the excerpt of the current future land use map, the property is
designated as Urban Neighborhood. The Urban Neighborhood designation description
reads:
“This category primarily includes urban density homes in a variety of types,
shapes, sizes, and intensities. Large areas of any single type of housing are
discouraged. in limited instances, an area may develop at a lower gross density
due to site constraints and/or natural features such as floodplains or steep
slopes. Complementary uses such as parks, home-based occupations, fire
stations, churches, schools, and some neighborhood-serving commerce provide
activity centers for community gathering and services. The Urban Neighborhood
designation indicates that development is expected to occur within municipal
boundaries. This may require annexation prior to development.
Applying a zoning district to specific parcels sets the required and allowed
density. Higher density residential areas are encouraged to be, but are not
required or restricted to, proximity to commercial mixed-use areas to facilitate the
provision of services and employment opportunities without requiring the use of
a car.”
The correlation between the future land use map of the growth policy and the zoning
districts is presented in Table 4 of the Bozeman Community Plan. As shown in the
following Correlation with Zoning Table excerpt, the R-1 district is an implementing
district of the Maker Space Mixed-Use designation.
Except from BCP Future Land Use Map:
In finding that this application meets criterion A, the analysis is cognizant that in many
planning efforts and discussions over the decades, the Planning Board and City
Commission have considered the various elements of the question of to grow or not grow
and the consequences of either approach. After considering this question, they have
concluded that having growth within the physical boundaries of Bozeman results in
better outcomes than not. Therefore, the BCP approaches growth as something that
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overall is positive but recognizes that it does not come without drawbacks and that the
community will change over time.
Goals and Policies
A zoning amendment is also evaluated against the goals and policies of the BCP
2020. Most of the goals and policies are not applicable to this application. Relevant goals
and objectives have been identified by the applicant and staff. Conflict with the text of
the growth policy hasn’t been identified.
The Short-Term Action list on page 63 of the BCP 2020 describes 14 items to
implement the growth policy. The first two relate to direct changes to the zoning map in
support of listed goals and objectives. Beginning on page 71 of the BCP 2020 in the
section titled Zoning Amendment Review, the document discusses how the city
implements zoning for new areas, amendments to areas, and revisions to existing text.
This section demonstrates that the City, as a matter of policy, is supportive of more
intensive zoning districts and development. It is inconsistent with this approach to zone
at annexation for lower intensities than what infrastructure and planning documents will
support. This policy approach does not specify any individual district but does lean
towards the more intensive portion of the zoning district spectrum.
The entirety of the Bridger Creek Golf course is annexed and zoned R-S, Residential
Suburban, except the area subject to this application. As noted in above and in the
applicant submittal, golf courses are only allowed in the R-S, R-1 and in certain
commercial and industrial zones. The property has a future land use designation of
Urban Neighborhood, therefore only the residential districts may be applied for with
annexation without an amendment to the Land Use Plan. Pursuant to section
38.300.100.A, BMC, application of the R-S district is not available for new annexations
leaving one applicable zoning district, the R-1 district.
The R-1 (RA) district is an implementing zone for the Urban Neighborhood future land
use designation. The applicant provided reasoning and justification for the requested
zoning classification shown as sheet 06_Zone Map_Amendment_Checklist_Narrative.
Staff provides additional analysis of the requested zoning for the record.
DCD-1.5 Identify underutilized sites, vacant, and undeveloped sites for possible
development or redevelopment, including evaluating possible development incentives.
The site is used as the golf course maintenance facility and developed using light
manufacturing site standards in the Gallatin County/Bozeman Area Donut zoning
district. Incorporating the property into the city will apply city standard to all future
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development which in turn will ensure water efficient fixtures and landscaping, properly
designed storm drainage, building construction standards that meet or exceed state
building requirements, and with the additional right-of-way associated with the
annexation allows for the full build out of Story Mill Road.
RC-3.4 Encourage annexation of land adjacent to the City prior to development and
encourage annexation of wholly surrounded areas.
The property is adjacent to the city limits and wholly surrounded. This goal is
furthered by the City’s annexation policies.
Goal N-3: Promote a diverse supply of quality housing units.
As noted above the area is designated as Urban Neighborhood according to the
FLUM. This category primarily includes urban density homes in a variety of types, shapes,
sizes, and intensities. The applicant states the current use will continue indefinitely,
however the R-1 (RA) district is primarily residential in nature and all uses listed in Table
38.310.030 are allowed. Uses include Single house dwellings, two-household dwellings,
accessory dwelling units, Cottage housing, and many other subordinate and residential
type of use.
Applying a zoning district to specific parcels sets the required and allowed density.
Higher density residential areas are encouraged to be, but are not required or restricted
to, proximity to commercial mixed-use areas to facilitate the provision of services and
employment opportunities without requiring the use of a car. The city must balance
encouraging housing development with development constraints and proximity to
employment, entertainment, education, and supporting its climate action initiatives.
Therefore, the proposed R-1 (RA) zoning is appropriate for this property.
RC-3.2 Work with Gallatin County to keep rural areas rural and maintain a clear edge to
urban development that evolves as the City expands outwards.
According to the Gallatin County growth policy, Envision Gallatin Plan, the subject
property is designated as the “Annexation Holding Area”. The purpose of the Annexation
Holding Areas is to promote the efficient use of the limited land resources in the County
and prevent proliferation of development reliant on individual well and septic in areas
adjacent to municipal services and infrastructure. See Figure 8-4: Gallatin County Future
Land Use Map, Triangle Plus, page 8-11.
Goal RC-3: Collaborate with Gallatin County regarding annexation and development
patterns adjacent to the City to provide certainty for landowners and taxpayers.
Gallatin County has been notified of the proposed annexation.
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RC-3.3 Prioritize annexations that enable the incremental expansion of the City and its
utilities.
The property in question is contiguous to the City limits on the west, east, and north.
RC-3.4 Encourage annexation of land adjacent to the City prior to development and
encourage annexation of wholly surrounded areas.
The property is adjacent to the City and does not create any new unannexed areas
surrounded by City limits. The property is seeking annexation and municipal zoning for
the purpose of continuing the current as a support for the golf course operation that is
utilized by many city residents.
In addition to goals and objectives, the BCP 2020 includes descriptive statements
regarding what the goals and objectives seek to support and create. Page 27 of the BCP
2020 includes the descriptive language for Theme 2, A City of Unique Neighborhoods.
Reviewing the language, themes of housing diversity, inclusion, and equity to serve
different housing needs are prevalent. Theme 2 emphasizes the importance of
neighborhoods in the City’s development. It is notable that none of the goals and
objectives associated with Theme 2 calls for fixing the character of developed areas in
their current status or prohibit the evolution of an area’s character.
There is recognition of the role that a sense of place serves in Goal N-4.
Neighborhoods do have physical attributes that help them be distinctive. In this case the
presence of watercourse and sensitive lands there is an opportunity to create unique
neighborhoods through a well-planned subdivision or site plan.
See also RC – 3.3 response.
Goal N-4: Continue to encourage Bozeman’s sense of place.
N-4.1 Continue to recognize and honor the unique history, neighborhoods,
neighborhood character, and buildings that contribute to Bozeman’s sense of place
through programs and policy led by both City and community efforts.
The proposed amendment does not alter the zoning on any adjacent property and
correspondingly the character of that adjacent property. As noted in other criteria in this
report, the proposed amendment is consistent with the planned development of the area
as homes with an urban intensity or other uses consistent with the R-1 (RA) district. While
the application does not further all goals of the BCP 2020, taken as a whole, the
application is supportive of and in accordance with, the BCP 2020.
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B. Secure safety from fire and other dangers.
Criterion Met. The property can be served by the Bozeman Fire Department. Fire
protection water supply will be provided by the City of Bozeman water system. There is
an ag building without services on the property. The property is not within any delineated
floodplain nor does it have other known natural hazards. Upon annexation the subject
property will be provided with City emergency services including police, fire and
ambulance. Future development of the property will be required to conform to all City of
Bozeman public safety, building and land use requirements. The City provides
emergency services to adjacent properties and no obstacles have been identified in
extending service to this parcel.
Municipal Code
Section and Title
Subject Related
Documents
When standard is
applied
18.02 International
Fire code
Adopt standards
for fire prevention
and control
Fire/EMS master
plan, International
Fire Code
Site plan and building
permit
38.400
Transportation
Facilities and
Access
Streets standards
for size and
construction
Transportation
Master Plan
Subdivision or site plan
review
38.400.010
Streets, general
Access for
emergency
services
Transportation
Master Plan
Subdivision or site
plan.
38.410.090 Fire
protection
requirements
Development
design
Fire/EMS master
plan, International
Fire Code
Subdivision, site plan,
and building permit
C. Promote public health, public safety, and general welfare.
Criterion Met. See comments in Section 6, Criteria A, B and D. City development
standards included in Chapter 38, Unified Development Code, building codes, and
engineering standards all ensure that this criterion is met. Adequate water and sewer
supply and conveyance provide for public health through clean water. Rapid and
effective emergency response provides for public safety. The City’s standards ensure
that adequate services are provided prior to construction of homes which advances this
criterion. General welfare has been evaluated during the adoption of Chapter 38 and
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found to be advanced. Provision of parks, control of storm water, and other features of
the City’s development standards advance the general welfare. Compliance with the
BCP 2020 advances the well-being of the community as a whole.
Municipal Code
Section and Title
Subject Related
Documents
When standard is
applied
18.02 International
Fire code
Adopt standards
for fire prevention
and control
Fire/EMS master
plan, International
Fire Code
Site plan and building
permit
38.400
Transportation
Facilities and
Access
Streets standards
for size and
construction
Transportation
Master Plan
Subdivision or site plan
review
38.410.070
Municipal water,
sewer systems
Location and
requirement to
install.
Sewer collection
facilities plan,
Water facilities
plan
Subdivision or site
plan.
38.410.090 Fire
protection
requirements
Development
design
Fire/EMS master
plan, International
Fire Code
Subdivision, Site plan,
and building permit
38.420 Parks Standards for
location, type,
and development
of parks and trails
Park, Recreation,
and Active
Transportation
Plan
Subdivision or site plan
review
38.5 Project Design Site layouts,
landscaping,
building
configuration,
signs, lighting
Site plan and building
permit
D. Facilitate the provision of transportation, water, sewerage, schools, parks and
other public requirements.
Criterion Met. This property is included in future planning areas. The City conducts
extensive planning for municipal transportation, water, sewer, parks, and other facilities
and services provided by the City. The adopted plans allow the City to consider existing
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Staff Report for the 1071 Story Mill Road Annexation and ZMA, No. 25525 Page 26 of 42
conditions and identify enhancements needed to provide additional service needed by
new development. The City implements these plans through its capital improvements
program that identifies individual projects, project construction scheduling, and
financing of construction.
As stated in 38.300.020.C, the designation of a zoning district does not guarantee
approval of new development until the City verifies the availability of needed
infrastructure. All zoning districts in Bozeman enable a wide range of uses and
intensities. At time of future subdivision or site plan review the need for individual
services can be more precisely determined. No subdivision or site plan is approved
without demonstration of adequate capacity.
38.300.020.C, “Placement of any given zoning district on an area depicted on the
zoning map indicates a judgment on the part of the city that the range of uses
allowed within that district are generally acceptable in that location. It is not a
guarantee of approval for any given use prior to the completion of the appropriate
review procedure and compliance with all of the applicable requirements and
development standards of this chapter and other applicable policies, laws and
ordinances. It is also not a guarantee of immediate infrastructure availability or a
commitment on the part of the city to bear the cost of extending services.”
The application site is located well within the City’s land use, transportation, parks, and
utility planning areas. Those plans show this property as developing within the City when
development is proposed. Adequacy of all these public requirements is evaluated during
the subdivision and site development process.
Municipal Code
Section and Title
Subject Related
Documents
When standard is
applied
18.02 International
Fire code
Adopt standards
for fire prevention
and control
Fire/EMS master
plan, International
Fire Code
Site plan and building
permit
38.400
Transportation
Facilities and
Access
Streets standards
for size and
construction
Transportation
Master Plan
Subdivision or site plan
review
38.410.060
Easements
Location and form
of easements for
utilities
Transportation
Master Plan,
Sewer collection
facilities plan,
Annexation for
collector and arterial
streets.
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Water facilities
plan
Subdivision or site plan
for all others.
38.410.070
Municipal water,
sewer systems
Location and
requirement to
install.
Sewer collection
facilities plan,
Water facilities
plan
Subdivision or site
plan.
38.410.090 Fire
protection
requirements
Development
design
Fire/EMS master
plan, International
Fire Code
Subdivision, site plan,
and building permit
38.420 Parks Standards for
location, type, and
development of
parks and trails
Park, Recreation,
and Active
Transportation
Plan
Subdivision or site plan
E. Reasonable provision of adequate light and air.
Criterion met. This criterion is not about individual preferences for a given degree of
visual openness but about preservation of public health. The R-1 (RA) district provides
abundant light and air through the Bozeman Unified Development Code’s standards for
park and recreation requirements, on-site open space for residential uses, maximum
building height, lot coverage, and setback requirements.
The form and intensity standards, Division 38.320, provide minimum lot areas, lot
widths, lot coverage and maximum floor area ratios, and prescribe require minimum
separation from property lines and limits building heights.
In addition to the zoning standards, adopted building codes contain more detailed
requirements for air circulation, window placement, and building separation that further
ensure the intent of this criterion is satisfied.
Municipal Code
Section and Title
Subject Related
Documents
When standard is
applied
38.320 Form and
Intensity
Standards
Standards for
building placement
and maximum size
Subdivision, site plan
review, building permit
38.420 Parks Standards for
location, type, and
Park, Recreation,
and Active
Subdivision or site plan
review
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development of
parks and trails
Transportation
Plan
38.520.060 On-site
residential and
commercial open
space
Private land open
area requirements
Site plan
F. The effect on motorized and non-motorized transportation systems.
Criterion Met. There is little or no effect on the transportation system by the application
of a R-1 zoning to this property. The site is bounded on two sides by City standard streets
and one being a Collector Street according to the Bozeman Area Transportation Plan. As
noted earlier, the property is zoned light manufacturing in the County and approximately
one acre of land, The fact the R-1 (RA) is the lowest density district allowed for new
projects in the city means that all the infrastructure planning assumes equal or greater
intensity than is allowed with this district. If, or when, the current use changes, only
residential and other identified R-1uses are allowed. A change of use may alter the timing
and frequency of trips from the development, it is unlikely to impact the Transportation
system as whole.
Future development will be required to make required improvements to the
Transportation system adjacent to the property that will bolster multi-model
Transportation typologies and improve internal circulation for future residents.
The City conducts routine transportation monitoring, modeling, and planning to
understand existing conditions and future needs of the transportation system. The 2017
Transportation Master Plan is the most recent transportation plan. Figure 2.5, Existing
Major Street Network, shows Story Mill Road as a collector street.
Support of multi-modal transportation is limited. Due the property’s location there are
limited destinations within walking distance and bicycle infrastructure may not be
robust enough to support viable use a bicycle as an alternative mode of transportation.
The Canyon Gate development on the east side of Story Mill Road has made
improvements to the multi-modal system by constructing detached sidewalks. Although
there are sidewalks on the west side, those sidewalks adjacent to County inholding are
attached to the roadway, a pedestrian unfriendly configuration. Development with city
standards prohibits these dangerous conditions.
City plans acknowledge the tension created with development. Not all goals and
policies are furthered with a particular application. The need for housing, the logical
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extension of city limits, and planned future commercial and other supporting uses near
the subject property outweigh negatives associated with this application. Future
development of this property provides opportunity to expand the pedestrian network
through installation of sidewalks. Bike and pedestrian travel is much more sensitive to
distance than motor vehicle travel. Sidewalk installation is a minimum development
standard under Chapter 38. This expands and improves the non-motorized
transportation system. These links will be required with any future development under
any municipal zoning district.
Municipal Code
Section and Title
Subject Related
Documents
When standard is
applied
38.400
Transportation
Facilities and
Access
Streets standards
for size and
construction
Transportation
Master Plan
Subdivision or site plan
review
38.410.060
Easements
Location and form
of easements for
utilities
Transportation
Master Plan,
Annexation for
collector and arterial
streets.
Subdivision or site plan
for all others.
38.420.110
Recreation
Pathways
Location and
requirement to
install.
Park, Recreation,
and Active
Transportation
Plan
Annexation for Class 1
Trails easement.
Subdivision or site plan
for all else.
The City has set minimum standards applicable to development to limit block length,
ensure trail and sidewalk connections, and provide streets adequate to carry traffic
projected from development. These standards are not applied at the time of the ZMA but
are implemented during the subdivision and site plan processes required before any
construction may begin. See also Section 6, Criterion D.
The Walk Score is low with a walk score of 24 and a transit score of nine. Currently,
Bozeman’s overall WalkScore is 47 with a transit score of 21. These values are provided
by Walk Score, a private organization which presents information on real estate and
transportation through walkscore.com. The algorithm which produces these numbers is
proprietary. A score is not an indication of safety or continuity of services or routes.
Scores are influenced by proximity of housing, transit, and services and expected ability,
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as determined by the algorithm, to meet basic needs without using a car. Sites located
on the edge of the community have lower scores than those in the center of the
community as the area is still under development and therefore diversity of uses is less
than in fully established areas. There are no adopted development standards relating to
the walk score.
According to Walk Score® the walks score measures the walkability of any address
based on the distance to nearby places and pedestrian friendliness.
90 – 100 Walker’s Paradise. Daily errands do not require a car.
70 – 89 Very Walkable. Most errands can be accomplished on foot.
50 – 69 Somewhat walkable. Some errands can be accomplished on foot.
25 – 49 Car-Dependent. Most errands require a car.
0 – 24 Car-Dependent. Almost all errands require a car.
Prior to occupancy or other appropriate trigger, the applicant must show all applicable
transportation systems are adequate to serve the proposed development and must
meet minimum City standards. The Applicant has been advised of specific code
provisions that will apply with future development proposals.
G. Promotion of compatible urban growth.
Criterion Met. The Bozeman Community Plan establishes a preferred and compatible
development pattern. “The land use map sets generalized expectations for what goes
where in the community… The land use categories and descriptions provide a guide for
appropriate development and redevelopment locations for civic, residential,
commercial, industrial, and other uses. The future land use designations are important
because they aim to further the vision and goals of the City through promoting
sustainability, citizen and visitor safety, and a high quality of life that will shape
Bozeman’s future.” (Community Plan P. 51)
Individuals may have widely varying opinions about what constitutes compatibility. To
address this wide variation of viewpoint, Compatible development and Compatible land
use are defined in Article 38.7 BMC to establish a common reference for consideration
of this criterion and application of development standards. They are defined as:
“Compatible development. The use of land and the construction and use of
structures which is in harmony with adjoining development, existing
neighborhoods, and the goals and objectives of the city's adopted growth policy.
Elements of compatible development include, but are not limited to, variety of
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Staff Report for the 1071 Story Mill Road Annexation and ZMA, No. 25525 Page 31 of 42
architectural design; rhythm of architectural elements; scale; intensity;
materials; building siting; lot and building size; hours of operation; and integration
with existing community systems including water and sewer services, natural
elements in the area, motorized and non-motorized transportation, and open
spaces and parks. Compatible development does not require uniformity or
monotony of architectural or site design, density or use.
Compatible land use. A land use which may by virtue of the characteristics of its
discernible outward effects exist in harmony with an adjoining land use of
differing character. Effects often measured to determine compatibility include,
but are not limited to, noise, odor, light and the presence of physical hazards such
as combustible or explosive materials.”
As noted in the definition of Compatible development, there are many elements that
contributed to compatibility. The final sentence of the definition deserves emphasis
“Compatible development does not require uniformity or monotony of architectural or
site design, density or use.” Compatible development can be different than what is
already in place. The City has adopted a variety of standards to implement compatibility.
The proposed R-1 (RA) district is primarily residential in character. The allowed uses for
residential districts are set in 38.310.030. Table 38.310.030.A - Permitted general and
group residential uses in residential zoning districts, shows permitted uses in the R-1
districts and Table 38.310.030.B details permitted accessory and non-residential uses
in residential zoning districts. The form and intensity standards for residential districts
are in 38.320.030.
Adjacent municipal zoning includes R-S (RA), R-1 (RA), R-3 (RB), B-2M. To the south are
a few additional inholdings of land zoned A-S and M-1 in the County. The existing Bridger
Creek subdivision (zoned R-S, R-1, and R-3) has developed between 2 - 20 living units per
acre while the Legends at Bridger Creek, to the northeast is zoned R-1 and R-3, has
developed between 5 – 20 living units per acre. Residential density is tracked through our
Land Use Plan and the Bozeman’s Strategic Plan. See Map 6 in Section 1 or go directly to
the Residential Density Map online. With the exception of un-annexed and undeveloped
areas nearby, this area is considered low density suburban development which, in
general, is typical of the R-1 district. While residential density represents a snapshot in
time, is does provide a qualifiable metric to assist in the compatible urban character
determination. Densities are expected to increase over time. Current City Code requires
minimum density for the R-1 through R-3 districts is 5, R-4 is set at 8 dwelling per net
acre, and R-5 is 8 dwelling per gross acre.
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The intent of the R-1 district, 38.300.100.B, BMC, “R-1 residential low density district is
to provide for primarily single-household residential development and related uses
within the city at urban densities. These purposes are accomplished by:
1. Providing for a minimum lot size in developed areas consistent with the
established development patterns while providing greater flexibility for
clustering lots and housing types in newly developed areas.
2. Providing for such community facilities and services as will serve the area's
residents while respecting the residential character and quality of the area.
The proposed amendment is associated with an annexation creating an incremental
increase in the size of the City. As discussed in Section 6, Criterion A above, both the
City’s and County’s growth policies expect this area to transition from rural to urban
development.
The City Commission has adopted standards to control development impacts and
support compatibility. The following excerpt from the BCP 2020, page 75 describes the
City’s approach.
“What combination of uses under what conditions can work well together? There
is a wide range of possible answers for each community to consider. Some
communities take a highly prescriptive worst-case view and try to restrain all
possible points of perceived conflict. This tends to create a very homogenous
community with little interest or scope for creativity. Bozeman takes a different
approach. The worst case scenario is recognized as unlikely, but possible.
Development standards deal with the majority of cases, while restraining
extraordinary problems.
The City creates standards under items 1 through 3; when one district is adjacent
to another and is consistent with the growth policy, any physical conflicts will be
minimal, if present at all. The City’s zoning policy encourages continued
development of mixed uses. … The City uses the broad scope of its development
standards to enable differing uses to be successful near each other. This shows
on the zoning map where districts providing a wide diversity of uses are
intermixed.”
This proposal amends the zoning map and not the text. Therefore, no element of this
amendment modifies the standards of any zoning district. The character of the districts
as created by those standards remains intact.
As noted above, the City Commission has latitude in considering the geographical
extents of a zoning district. Application of any municipal zoning district to the subject
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property may alter the existing character of the subject property. It is not expected that
zoning freeze the character of an area in perpetuity. Rather, it provides a structured
method to consider changes to the character. The BCP 2020 notes,
“…when considering an amendment to the zoning map both the actual and
possible built environment are evaluated. If the amendment is accompanying an
annexation request, there is often a substantial change in use that will occur. In
this case, the Commission must look at what the growth policy recommends for
the area, as there is less built context to provide guidance.”
The BCP 2020 includes several objectives applicable to this criterion. These are:
N-1.11 Enable a gradual and predictable increase in density in developed areas over
time.
N-1.2 Increase required minimum densities in residential districts.
N-3.5 Strongly discourage private covenants that restrict housing diversity or are
contrary to City land development policies or climate action plan goals.
Application of any municipal zoning district to the subject property and subsequent
development will alter the existing character of the subject property. Likewise,
development under any municipal zoning district will be visually different from adjacent
unannexed property. This is true even if both are used for similar types of housing due to
the differences between municipal and county zoning.
Staff concludes that the R-1 is compatible urban growth as called for in the growth
policy. See also discussion for Section 6, Criteria A & H.
H. Character of the district.
Criterion Met. Section 76-2-302, MCA says “…legislative body may divide the
municipality into districts of the number, shape, and area as are considered best suited
to carry out the purposes [promoting health, safety, morals, or the general welfare of the
community] of this part.” Emphasis added.
This proposal amends the zoning map and not the text. Therefore, no element of this
amendment modifies the standards of any zoning district. The character of the districts
as created by those standards remains unaltered. Even though the criterion is most
applicable to text amendments it still must be applied to consideration of zoning map
amendments. The requested zoning meets the requirements of this criterion because
the future land use map show this area as Urban Neighborhood and much of the
surrounding area has developed as low density residential with a transition to more
commercial and industrial activity the closer to the intersection of Story Mill Road and
Bridger Canyon Drive.
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Most adjacent lands are zoned low to moderate density residential districts. The
surrounding zoning, including industrial areas, existing roads, and anticipated
development represent an evolving character of the area. The requested zoning is listed
as an implementing zone for the future land designated in the BCP. The proposed
amendment only applies to the Applicant’s property and does not change what is or is
not allowed on adjacent property.
As noted above, the City Commission has discretion within the limits of the State
established criteria in considering the location and geographical extents of a zoning
district. Implementation of zoning must also be in accordance with the adopted growth
policy. As noted in Section 6, Criterion A, the City policy calls for a diverse and densifying
land use pattern. See discussion in Section 6, Criterion A.
The BCP 2020 includes several objectives applicable to this criteria. These are:
N-1.11 Enable a gradual and predictable increase in density in developed areas over
time.
N-1.2 Increase required minimum densities in residential districts.
N-3.5 Strongly discourage private covenants that restrict housing diversity or are
contrary to City land development policies or climate action plan goals.
Application of any municipal zoning district to the subject property and subsequent
development may alter the existing character of the subject property with future
development. Likewise, development under any municipal zoning district will be visually
different from adjacent unannexed property. This is true even if both are used for similar
types of housing due to the differences between municipal and county zoning. The
application of municipal zoning will not require changes to the long-standing existing use
of the site.
Zoning doesn’t freeze the character of an area in perpetuity. Rather, it provides a
structured method to consider changes to the character. The BCP 2020 notes,
“…when considering an amendment to the zoning map both the actual and
possible built environment are evaluated. If the amendment is accompanying an
annexation request, there is often a substantial change in use that will occur. In
this case, the Commission must look at what the growth policy recommends for
the area, as there is less built context to provide guidance.”
See Section 6, Criterion A above for discussion about the application and growth policy
and anticipated change to the character of the area.
The City has defined compatible development as:
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“The use of land and the construction and use of structures which is in harmony
with adjoining development, existing neighborhoods, and the goals and objectives
of the city's adopted growth policy. Elements of compatible development include,
but are not limited to, variety of architectural design; rhythm of architectural
elements; scale; intensity; materials; building siting; lot and building size; hours of
operation; and integration with existing community systems including water and
sewer services, natural elements in the area, motorized and non-motorized
transportation, and open spaces and parks. Compatible development does not
require uniformity or monotony of architectural or site design, density or use.”
As noted above, the City Commission has latitude in considering the geographical
extents of a zoning district. To date, the City of Bozeman has not defined a specific area
outside of the area itself to be rezoned for consideration of this criterion. A review of the
existing uses within a quarter mile radius of the amendment site shows three zoning
districts. First is R-1, the same as what is being proposed which allows a variety of
housing types or golf course in close proximity. Second, R-3, is a municipal district and
allows a wide variety of housing types including detached homes, townhomes, and other
forms of attached homes, as well as various institutional and light commercial uses.
REMU which is mixed-use in character and provides options for a variety of housing,
employment, retail and neighborhood service opportunities within a new or existing
neighborhood. Third, there is an area of B-2M zoning across Story Mill Road. The B-2M
is considered a commercial zone although it allows a wide variety of residential uses
on any floor of a proposed building. As with all districts in the city, a full suite of
standards applies to address potential impacts of development on adjacent
properties. Finally, A-S, is a county zoning district focused on low density residential and
preservation of agricultural operation until it transitions to urban development. See
discussion under Section 6, Criterion A above.
Page 77 of the BCP 2020 describing review of zoning map amendments states “When
evaluating compliance with criteria, it is appropriate to consider all the options allowed
by the requested district and not only what the present applicant describes as their
intensions.” When evaluating compatibility between zoning districts, Staff considers the
full range of allowable uses, not only what is built now or proposed by a specific project.
Permitted uses in the R-1 zone are similar the prevailing typologies in the area.
The City, as shown by an examination of the zoning map and authorized uses in all zoning
districts, strives to encourage a diverse development pattern and avoid large areas of
single use development. This is further supported by the statement in the description of
the Urban Neighborhood future land use category, “Large areas of any single type of
housing are discouraged.” No size is specified for what is a large area. Therefore, when
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considering the character of an area it is expected that there will be diversity of
development types. This diversity is also shown on the zoning maps in Section 1.
Municipal Code
Section and Title
Subject Related
Documents
When standard is
applied
38.310 Permitted
Uses
What can be done
where in the city.
Growth policy Subdivision, site plan,
building permit
38.320 Form and
Intensity
Standards
Standards for
building placement
and maximum size
Subdivision, site plan,
building permit
38.320.060 Zone
Edge Transitions
Height
adjustments on the
edge of some
zones
Site plan
38.340 Overlay
District Standards
Historic
preservation
SOI Standards for
Historic
Preservation,
Design Guidelines
for Historic
Preservation
Site plan and building
permit
38.5 Project
Design
Site layouts,
landscaping,
building
configuration,
signs, lighting
Site plan and building
permit
Table 4 of the BCP 2020, see Section 6, Criterion A above, identifies the implementing
zoning districts of the Urban Neighborhood future land use category. That category
allows for zoning districts that authorize a wide range of possible future development.
There are no zoning districts which are limited to only one type of development. All zoning
districts implementing the Urban Neighborhood category provide for a range of housing
types, institutions, and commercial activities. The expansiveness and intensity allowed
varies between districts. As noted in this report, the BCP 2020 calls for evaluation of the
entire range of uses in zoning districts when evaluating criteria for zoning amendments.
The R-1 zoning district and the adjacent R-1, R-3, zoning districts are residential in nature
and are more similar than different in uses and standards while the B-2M across Story
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Mill Road to the east is primarily commercial, there is a substantial buffer between these
districts.
Evaluation of this situation is guided by the growth policy. On page 76 of the BCP 2020
under discussion of application of this zoning criteria states:
“Second, when considering an amendment to the zoning map both the actual
and possible built environment are evaluated. If the amendment is
accompanying an annexation request, there is often a substantial change in
use that will occur. In this case, the Commission must look at what the growth
policy recommends for the area, as there is less built context to provide
guidance.”
The City has adopted many standards to identify and avoid or mitigate demonstrable
negative impacts of development. These will support the ability of future development in
R-1 (RA) to be compatible with adjacent development and uphold the residential
character in an area. The following excerpt from the BCP 2020, page 75 describes the
City’s adopted approach.
“What combination of uses under what conditions can work well together?
There is a wide range of possible answers for each community to consider.
Some communities take a highly prescriptive worst-case view and try to
restrain all possible points of perceived conflict. This tends to create a very
homogenous community with little interest or scope for creativity. Bozeman
takes a different approach. The worst-case scenario is recognized as unlikely,
but possible. Development standards deal with the majority of cases, while
restraining extraordinary problems.
The City creates standards under items 1 through 3; when one district is
adjacent to another and is consistent with the growth policy, any physical
conflicts will be minimal, if present at all. The City’s zoning policy encourages
continued development of mixed uses. … The City uses the broad scope of its
development standards to enable differing uses to be successful near each
other. This shows on the zoning map where districts providing a wide diversity
of uses are intermixed.”
The standards adopted by the City prevent physically dangerous spillover effects. An
example is the capture, treatment and discharge controls from additional storm water
runoff as additional impervious surfaces are built. Required setbacks from property
lines, landscaping requirements, and similar site and building standards address
character and compatibility. These and other standards carry out the intent and purpose
of the City’s land development standards in Chapter 38 of the municipal code.
54
Staff Report for the 1071 Story Mill Road Annexation and ZMA, No. 25525 Page 38 of 42
Sec. 38.100.040. - Intent and purpose of chapter.
A. The intent of this unified development chapter is to protect the public
health, safety and general welfare; to recognize and balance the various
rights and responsibilities relating to land ownership, use, and
development identified in the United States and State of Montana
constitutions, and statutory and common law; to implement the city's
adopted growth policy; and to meet the requirements of state law.
Zoning does not prohibit change but provides a structure within which change can occur.
Such changes include modifications to both the text and zoning map. Such amendments
are authorized in the zoning enabling act for municipalities. Landowners have both
property rights and responsibilities. The City has adopted development standards to
ensure that responsibilities are met while landowners exercise their property rights. The
City has not chosen, and is not required, to adopt standards for all issues. For example,
standards have not been adopted regarding preservation of view sheds or extra
separation of buildings from unannexed property.
See also discussion for Section 6, Criteria A, G, and F.
I. Peculiar suitability for particular uses.
Criterion met. The proposed amendment does not modify the existing standards of the
R-1 districts. Therefore, the impact of the amendment is limited to this application site.
The property is flat and without significant environmental constraints. The property is
within the City’s planning area for land use and utility extensions. There is frontage on
Story Mill, a Collector Street, and Boylan Roads. Municipal utilities and emergency
services can be extended to the area.
Municipal Code
Section and Title
Subject Related
Documents
When standard is
applied
38.310 Permitted
Uses
What can be done
where in the city.
Growth policy Subdivision, site plan
review, building permit
38.320 Form and
Intensity
Standards
Standards for
building placement
and maximum size
Subdivision, site plan
review, building permit
38.600 Natural
Resource
Protection
Protect
watercourses and
wetlands
FEMA Floodplain
study
Subdivision, site plan
review, building permit
55
Staff Report for the 1071 Story Mill Road Annexation and ZMA, No. 25525 Page 39 of 42
The context, physical features, future land designation are not unusual for properties
adjacent to the City and described features support annexation and development within
the City. While others use may be suitable, residential uses are suitable for this property.
J. Conserving the value of buildings.
Criterion met. The proposed amendment does not modify the existing standards of the
R-1 district. R-1 zoning is primarily low density residential in nature. The immediate
Future Land Use and zoning surrounding the property is residential in nature. County
zoning to the south is industrial.
Any new structures at the site will be required to meet setback and other protective
requirements set forth in the Bozeman Municipal Code. Compliance will alleviate
potential negative impacts to the value of surrounding buildings and properties. As
described in earlier criteria, the proposed zoning is compatible with existing buildings on
adjacent properties and does not create any new situations not in compliance with
municipal code.
K. Encourage the most appropriate use of land throughout the jurisdictional area.
Criterion Met. The proposed R-1 zoning designation will encourage the most appropriate
use of land as the property is adjacent to both residential and commercial uses. There is
access to the city’s services, including streets, thus is able to support uses as allowed
within the R-1 zoning district. Furthermore, the proposed R-1 zoning designation is
consistent with the BCP 2020 future land use map designation of “Urban
Neighborhood”.
APPENDIX A - NOTICING AND PUBLIC COMMENT
Notice was published in the Bozeman Daily Chronicle on January 3 and 10, 2026. The
notice was posted on site and notices mailed by the applicant as required by 38.220 and
the required confirmation provided to the Planning Office. Notice was provided at least
15 and not more than 45 days prior to any public hearing.
No public comment has been received on this application as of the production of this
report.
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Staff Report for the 1071 Story Mill Road Annexation and ZMA, No. 25525 Page 40 of 42
APPENDIX B - PROJECT GROWTH POLICY AND PROPOSED ZONING
Adopted Growth Policy Designation:
The property is designated as “Urban Neighborhood” in the Bozeman Community Plan
2020.
“This category primarily includes urban density homes in a variety of types,
shapes, sizes, and intensities. Large areas of any single type of housing are
discouraged. In limited instances, an area may develop at a lower gross density
due to site constraints and/or natural features such as floodplains or steep
slopes. Complementary uses such as parks, home-based occupations, fire
stations, churches, schools, and some neighborhood-serving commerce provide
activity centers for community gathering and services. The Urban Neighborhood
designation indicates that development is expected to occur within municipal
boundaries. This may require annexation prior to development.
Applying a zoning district to specific parcels sets the required and allowed
density. Higher density residential areas are encouraged to be, but are not
required or restricted to, proximity to commercial mixed use areas to facilitate the
provision of services and employment opportunities without requiring the use of
a car.”
Proposed Zoning Designation and Land Uses:
The applicant has requested zoning of R-1, Residential Low-Density District, whose
intents are:
The intent of the R-1 residential low-density district is to provide for primarily single-
household residential development and related uses within the city at urban densities.
These purposes are accomplished by:
1. Providing for a minimum lot size in developed areas consistent with the
established development patterns while providing greater flexibility for clustering
lots and housing types in newly developed areas.
2. Providing for such community facilities and services as will serve the area's
residents while respecting the residential character and quality of the area
57
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58
Staff Report for the 1071 Story Mill Road Annexation and ZMA, No. 25525 Page 42 of 42
APPENDIX C - OWNER INFORMATION AND REVIEWING STAFF
Owner: Great Norther Golf Company of Montana, 2710 McIllhattan Road,
Bozeman, MT 59715
Applicant: 45 Architecture & Interiors, 4204 Ravalli Street, Bozeman, MT 59715
Representative: 45 Architecture & Interiors, 4204 Ravalli Street, Bozeman, MT 59715
Report By: Tom Rogers, Senior Planner, Community Development Department
FISCAL EFFECTS
No unusual fiscal effects have been identified. No presently budgeted funds will be
changed by this Annexation or Zone Map Amendment.
ATTACHMENTS
The full application and file of record can be viewed at the Community Development
Department at 20 E. Olive Street, Bozeman, MT 59715. The application materials can also
be viewed online by clicking the following web link.
https://weblink.bozeman.net/WebLink/Browse.aspx?id=303855&dbid=0&repo=BOZEMAN
59
Memorandum
REPORT TO:Community Development Board
FROM:Chris Saunders, Community Development Manager
Erin George, Community Development Director
SUBJECT:Transmittal of 2025 Q2 Economic and Market Update
MEETING DATE:January 26, 2026
AGENDA ITEM TYPE:Plan/Report/Study
RECOMMENDATION:Receive information
STRATEGIC PLAN:1.3 Public Agencies Collaboration: Foster successful collaboration with other
public agencies and build on these successes.
BACKGROUND:The Department of Economic Development commissions an annual report
on the status of Bozeman's economy and housing. The report covers through
the 2nd quarter of each calendar year so it concludes with data closing out
the month of June. This information is provided to the Community
Development Board as it influences and is influenced by the Land Use Plan.
UNRESOLVED ISSUES:None.
ALTERNATIVES:Not applicable
FISCAL EFFECTS:No budgeted funds are expended with this item.
Attachments:
Bozeman 2025 Q2 Economic and Market Update_12-22.pdf
Report compiled on: January 20, 2026
60
Economic & Planning Systems, Inc.
The Economics of Land Use
Prepared by:Prepared for:
City of Bozeman, MT Economic Development Department
Report
Bozeman
2025 Q2 Economic
and Market Update
December 2025 EPS #233073
61
ii Bozeman 2025Q2 Economic and Market Update
Table of Contents
2
3
4
5
6
1 City Snapshot and Summary 1
City Snapshot 1
Economy 9
Economic Base 9
Job Trends 12
Wages 15
Government Employment 18
Commercial Real Estate 19
Office Market Trends 19
Industrial/Flex Market 22
Retail Market 26
Accommodations Market 29
Hotel Market Snapshot 29
Residential Real Estate 35
Construction 35
Housing Prices 36
Multihousehold Market 37
Affordability 44
Population Forecasts and Housing Demand 47
Forecast Summary 47
Scenario Comparisons 49
62
Economic & Planning Systems, Inc. iii
Table of Contents
TablesTable 1. Population and Housing Units, 2010-2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Table 2. MSU Enrollment, 2010-2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Table 3. Peer City Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Table 4. Total Employment, 2019-2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Table 5. Job and Wage Growth, Top Sectors, Gallatin County, 2019-2024 . . . . . . . . . . 15
Table 6. Population 25+ by Educational Attainment, Bozeman, 2025. . . . . . . . . . . . . . 17
Table 7. Government Employment, 2019-2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Table 8. Office Market Summary , 2020-2025 Q3. . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Table 9. Recent Office Development, Gallatin County. . . . . . . . . . . . . . . . . . . . . . . . . 21
Table 10. Industrial/Flex Summary, 2020-2025 Q3 . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Table 11. Recent Industrial/Flex Developments, Gallatin County. . . . . . . . . . . . . . . . . . 25
Table 12. Retail Summary, 2020-2025 Q3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Table 13. Recent Retail Projects, Gallatin County. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Table 14. Hotel Summary, 2020-July 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Table 15. Notable Hotel Development and Construction, Gallatin County 2020-2027 . . 31
Table 16. Bozeman Permit Trends, 2020-2024. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Table 17. Home Price Trends, 2018-May 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Table 18. Multihousehold Summary, 2020-2025 Q3. . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Table 19. Recent Multihousehold Construction, 2024-2025 . . . . . . . . . . . . . . . . . . . . . 39
Table 20. Bozeman LIHTC Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Table 21. New vs Existing Multihousehold Trends, Bozeman. . . . . . . . . . . . . . . . . . . . . 41
Table 22. Required Annual Income to Afford Median Home Price, 2024-July 2025. . . . . 44
Table 23. Cost Burdened Housing Units, 2019-2023 . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Table 24. Housing Unit Demand Forecast By Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Table 25. Part-Time/Second Homes Forecast. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Table 26. Worker Commuting Pattern Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Table 27. Housing Unit Demand by Type, City of Bozeman . . . . . . . . . . . . . . . . . . . . . . 51
63
iv Bozeman 2025Q2 Economic and Market UpdateFiguresFigure 1. Gallatin Valley Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Figure 2. Bozeman Yellowstone International Airport Destinations . . . . . . . . . . . . . . . . 7
Figure 3. Covered Wage and Salary Employment, Bozeman and Gallatin County, 2024. . . 9
Figure 4. Private Employment Trends, Bozeman and Gallatin County, 2019-2024 . . . . . 13
Figure 5. Unemployment Rate, 2010-August 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Figure 6. Change in Employment by Wage Quartile and 1-Person AMI, Bozeman,
2022-2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Figure 7. Office Deliveries, 2010-2025 Q3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Figure 8. Industrial/Flex Deliveries, 2010-2025 Q3 . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Figure 9. Retail Deliveries, 2010-2025 Q3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Figure 10. Hotel Room Deliveries 2010-July 2025. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Figure 11. Occupancy Rate by Month, January 2022-July 2025 . . . . . . . . . . . . . . . . . . . 32
Figure 12. Average Daily Rate, 2010-July 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Figure 13. Multihousehold Deliveries, 2010-2025 Q3 . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Figure 14. Market Rate and Affordable Multihousehold Vacancy Rate and Deliveries,
Bozeman. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Figure 15. Vacancy Rate in New vs Existing Multihousehold Development, Bozeman. . . . 42
Figure 16. Bozeman Multihousehold Deliveries and Vacancy Rate, 2010-2025 Q3 . . . . . 42
Figure 17. Bozeman Effective vs Asking Rent per unit, 2019-2025 . . . . . . . . . . . . . . . . . 43
Figure 18. Income Gap to Afford Median Priced Home, Bozeman, 2024 . . . . . . . . . . . . . 45
Figure 19. Income Gap to Afford Median Priced Home, Bozeman, 2025 . . . . . . . . . . . . . 45
Figure 20. Jobs Forecast, Bozeman and Gallatin County, 2045 . . . . . . . . . . . . . . . . . . . . 48
Figure 21. Population Forecast, Bozeman and Gallatin County, 2045 . . . . . . . . . . . . . . . 48
64
Notable changes since 2024Q2
Since the 2024 Q2 report, the economic fundamentals in Bozeman and Gallatin
County have not changed; however, there are signs of moderating or slowing
growth in population, jobs, and housing construction.
Signs of Slowing Growth
Population, employment, and housing unit growth in Bozeman and Gallatin County
may be slowing after the rapid and sustained growth between 2010 and 2025.
X The average population growth rate in Bozeman from 2010 through 2025
(estimated) was 3.6% per year. From 2023-2024 Bozeman’s population grew
by 2.7% and by 2.0% from 2024-2025. A drop in in-migration post-pandemic
and job growth may be driving this trend. This is still a relatively strong
growth rate, as demographers consider growth rates above 2.0% per year to
be fast and less than 1.5% per year as slow.
X In 2025, an estimated 840 multihousehold units were built in Bozeman,
growing the supply by 10.4% (to 8,944) between 2024 and 2025. This is
below the 2010-2025 average annual growth rate of 15.7% and less than the
2023-2024 growth of 47.7%.
X Bozeman and Gallatin County continued to see strong job growth through
2024, with 3.7% and 2.5% growth over 2023, respectively. Year end data
for 2025 is not yet available; however, the BLS Current Employment Survey
estimates that the Bozeman MSA lost 3,000 jobs, or a 3.8% reduction in
private employment between August 2024 and August 2025. Significant job
losses were experienced in the leisure and hospitality and state government
sectors.
X The impacts of potential government shutdowns or reductions in the federal
workforce are not yet known but could be significant for this region. Federal
government employment accounts for about 662 jobs in this region, or about
0.8 percent of total employment. In addition, there are 8,369 jobs in state
and local government corresponding to 10.6% of total employment. Slower
growth in Bozeman, combined with high interest rates, may result in slower
new housing construction. In addition, the absorption period for the new
supply of multihousehold units (apartments) may be slower than it has been
historically.
Home Price Moderation in Bozeman
From 2020-2024, the median home price grew by 8.1% per year to $779,000
in 2024. As of July 2025, the median home price is $796,500—an increase of
2.2%. This marks the third consecutive year of home price growth below 2.5%.
Between 2024 and July 2025:
X In Bozeman, the median home price was up 2.2% to $796,500
X In Belgrade, the median home price was down -2.5% to $598,000
X In Greater Manhattan, the median home price was up 7.0% to $803,000
X In the rest of Gallatin County, the median home price was up 7.0% to
$867,000
Economic & Planning Systems, Inc. 1
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Notable changes since 2024Q2
While home price appreciation has slowed, the region is still a high-cost
housing market with deep housing affordability challenges. The median home
price in Bozeman is only affordable to people earning $220,164 per year (182%
of AMI or more). It would take a major market correction for home prices to
return to the more attainable levels seen before 2020.
Multihousehold Inventory and Vacancy
The construction of 3,458 new apartments in 2023-2025 was the largest
increase in new multifamily housing construction in Bozeman since these
data were tracked starting in 2010. This has caused an increase in the average
market-wide vacancy rate to about 18.7%. A closer look at the data shows how
this “slug” of new construction skews the vacancy statistics.
X The addition of approximately 1,900 units in 2024 and 2025 increased the
average market-wide vacancy rate from 12.6% in 2024 to 18.7% in 2025.
X Newly constructed apartments that are still in the lease up period have
much higher vacancy rates compared to existing apartments, which strongly
skews the vacancy rate up. The vacancy rate for the approximately 1,900
units built in 2024 and 2025 was 44.2% compared to 9.2% for existing
apartments built before 2024.
X The multihousehold vacancy rate is likely to remain high for 18 to 24 months
as new supply gets absorbed. The current high vacancy rates and large
increase in supply may deter more new construction until the new inventory
is leased up and absorbed by the market. Vacancies may remain elevated if
local job growth and in-migration continues to be at a slower pace than the
past 10 years.
Hotel Room Count Growth
Bozeman had a major shift in the hotel market following the surge in travel
after the pandemic. Prior to 2020, Bozeman added about 20 rooms per year
on average. However, between 2020 and July 2025 there were 688 new hotel
rooms built or 138 per year on average.
X The hotel bed base in Gallatin County continues to grow with 322 rooms
built between 2024 and July 2025. A further 696 rooms are expected to be
built by 2027.
X Since 2020, the economy market accounted for 43.7% of deliveries.
However, 66.7% of rooms under construction will be economy, signaling a
shift towards more economy options in Gallatin County.
X Occupancy rates for hotels are strong at an average of 74.0% in 2024, the
latest year with complete data. High occupancy rates during a period of
growing supply are indicative of a strong hotel market.
2 Bozeman 2025Q2 Economic and Market Update
66
This report contains data on the economic landscape of Bozeman and Gallatin County,
Montana, focusing on key growth trends, commercial real estate development, and housing
market dynamics. Designed for economic developers, real estate developers, investors,
lenders, and policymakers, the report aims to deliver insights into regional growth patterns,
industry trends, and housing demand and affordability. The purpose is to assist the community
in tracking progress, identifying trends, and recognizing potential challenges. This 2025 Q2
edition is part of an annual series that monitors and updates market conditions within the city
and county.
City Snapshot
Bozeman, home to 61,662 residents (Table 1), is located in Gallatin County (pop. 135,227);
most of the population in Gallatin County is in the Gallatin Valley (Figure 1) which includes
Four Corners and Belgrade. Bozeman is notable for its diverse economy, highly educated
workforce, and high quality of life, a unique blend for a city of its size.
The community is anchored by Montana State University (MSU), a strong research university.
MSU enrolls over 17,000 students and supports over 3,600 faculty and staff. The area has
excellent access to year-round outdoor recreation activities including world-class skiing,
hiking, and fishing sites.
Bozeman is growing rapidly, adding 25,222 residents since 2010 or an average of 1,681 per
year, corresponding to a 3.6 percent annual average growth rate. However, growth may be
slowing slightly. Between 2024 and 2025 population growth was 2.1 percent and housing unit
growth was 1.7 percent, both below long term growth trends from 2010-2025.
Bozeman contains 45.6
percent of the population
and 45.8 percent of housing
units in Gallatin County.
Between 2010 and 2025
Bozeman captured 55.3
percent of population
growth and 57.4 percent
of housing unit growth.
Recently, Bozeman captured
a smaller share of Gallatin
County growth. Between
2024 and 2025, 44.4 percent
of population growth and
32.5 percent of housing unit
growth took place in the city.
1. City Snapshot and Summary
Economic & Planning Systems, Inc. 1
67
Table 1. Population and Housing Units, 2010-2024
2010-2025
Description 2010 2020 2023 2024 2025 Total Ann. #Ann. %
Total Population
Bozeman 36,440 53,293 58,814 60,425 61,662 25,222 1,681 3.6%
Belgrade 7,281 10,460 11,314 12,060 12,786 5,505 367 3.8%
Manhattan 1,396 2,086 2,167 2,243 2,235 839 56 3.2%
Uninc. Gallatin County 44,541 53,121 56,671 57,713 58,544 14,003 934 1.8%
Gallatin County 89,658 118,960 128,966 132,441 135,227 45,569 3,038 2.8%
Bozeman Yearly % Change ------2.7%2.0%
Housing Units
Bozeman 16,761 23,535 26,189 27,130 27,450 10,689 713 3.3%
Belgrade 3,154 4,339 4,714 5,029 5,363 2,209 147 3.6%
Manhattan 574 872 914 924 918 344 23 3.2%
Uninc. Gallatin County 20,841 24,089 25,678 25,893 26,229 5,388 359 1.5%
Gallatin County 41,330 52,835 57,495 58,976 59,960 18,630 1,242 2.5%
Bozeman Yearly % Change ------3.6%1.2%
Bozeman % of Gallatin County
Population 40.6%44.8%45.6%45.6%45.6%55.3%
Housing Units 40.6%44.5%45.6%46.0%45.8%57.4%
Source: ESRI Business Analyst; Economic & Planning Systems
2 Bozeman 2025Q2 Economic and Market Update
68
Figure 1. Gallatin Valley Region
Economic & Planning Systems, Inc. 3
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Economic Drivers
Higher Education
In 2024, Montana State University (MSU), the state’s land grant institution, enrolled 17,144
students (Table 2) and employed 3,644 faculty and staff. MSU is classified within the Carnegie
Classification of Institutions of Higher Education (Indiana University) as an R1 research
university, one of 187 universities with “very high research activity.” MSU is one of two
Montana universities and one of 19 universities in the Rocky Mountain region to receive this
classification.
Table 2. MSU Enrollment, 2010-2024
2010-2024
MSU Enrollment 2010 2020 2023 2024 Change Ann. #Ann. %
Undergraduate 11,579 14,240 14,885 15,053 3,474 248 1.9%
Graduate 1,986 2,009 2,093 2,091 883 38 2.4%
Total 13,565 16,249 16,978 17,144 5,398 235 1.7%
Source: Montana State University; Economic & Planning Systems
Tourism and Recreation
Bozeman serves as a “gateway community” to some of the premier outdoor recreation areas
in the U.S. In the summer, outdoor enthusiasts come to Bozeman to access the pristine rivers
and streams, Custer Gallatin National Forrest, and the iconic Yellowstone and Glacier National
Parks. In the colder months, the ski resorts Bridger Bowl and Big Sky attract thousands of
domestic and international skiers. Big Sky and the Yellowstone Club draw wealthy visitors
and part-time residents from around the world. In 2024, there were 8,068 jobs in the Arts/
Recreation and Hotel/Restaurant industries, representing 18.8 percent of employment in
Bozeman.
Health Care
Health Care is a key industry in Bozeman, employing 6,388 people in 2024. Anchoring the
sector is Bozeman Health, one of the region’s largest employers. Bozeman Health employed
over 2,800 people in 2024. In addition, the hospital was awarded an “A” grade for safety by
the Leapfrog Hospital Survey and was named a top 100 rural hospital by Chartis, a healthcare
consultant. In October 2025, Bozeman Health and Billings Clinic announced plans to
jointly develop land at the Billings Clinic Bozeman campus, improving health care options
in southwest Montana. Another major healthcare provider, Intermountain Health, added a
second location in Bozeman, bringing more specialty care services to the region. Additionally,
over the past few years, Montana State University has been expanding its educational
healthcare programs. MSU received a $1.9 million grant from the Merck Foundation to expand
cancer treatment centers to rural Montana in March 2025. Additionally, the Mark and Robyn
Jones College of Nursing was the recipient of a $43,685 grant from Blue Cross and Blue Shield
of Montana to support clinical agencies in rural areas.
4 Bozeman 2025Q2 Economic and Market Update
70
Technology
In 2024–2025, the technology sector is emerging as a transformative economic driver in the
Bozeman, Montana region, anchored by the statewide designation of Headwaters Tech Hub as
a Regional Technology & Innovation Hub by the U.S. Economic Development Administration,
a component of the CHIPS and Science Act of 2022. The Headwaters Tech Hub and the
accompanying $41 million investment builds on Bozeman’s strong existing optics, photonics
and quantum-technology ecosystem, which currently counts over 60 firms and dozens of
research labs in and around the Gallatin Valley. In part, the Headwaters Tech Hub was awarded
to Montana due to the decades of advancement in smart sensors and photonics and optics, as
well as Montana State University’s creation of the MSU Quantum Core in 2025.
Bozeman is home to a technology sector that includes both startups and established
companies across the tech spectrum. Firms such as Zoot Enterprises and Snowflake Inc.
specialize in software development. Aurora and Ascent Vision Technologies are major R&D
and technology manufacturers. Additionally, the quantum, photonics, and optics industry is an
important cluster. Over 25 private quantum companies are located in the city, bolstered by the
presence of MSU which operates eight labs and research centers in support of the photonics
and optics industry. In 2024, Montana received $41 million in funding from the U.S. Economic
Development Administration for the Headwaters Tech Hub. The tech hub is an accelerator for
the commercialization of quantum technology.
Manufacturing
Bozeman has a diverse range of manufacturing companies. Tech companies such as Aurora
specialize in high-tech manufacturing while firms like Simms Fishing, West Paw, and Gibson
Guitar Company engage in consumer product manufacturing. MSU’s Montana Manufacturing
Extension Center (MMEC), located in Bozeman, provides outreach and assistance for
manufacturers across the state.
Retail and Hospitality
Bozeman retailers serve a 50-plus mile trade area. Home to an abundance of retail, services,
art, entertainment, accommodations, and dining businesses, Bozeman is the retail center
of southwest Montana. Downtown Bozeman is a vibrant main street, home to an array
restaurants and nightlife. In 2025, the former Gallatin Valley Mall rebranded as Gallatin
Crossing and completed a $100 million redevelopment project with a mix of retail and medical
uses. Notable tenants include Whole Foods, Lululemon, Arhaus, and Intermountain Health.
Creative Arts
The city has many businesses that provide goods and services based on intellectual property
and individual creativity. These businesses include publishing, film, TV, media, design,
technology, performing arts, and museums and galleries. Notable arts and culture assets
include the Emerson Center for the Arts and Culture, the historic Ellen Theatre, and the
Montana Ballet Company. Additionally, Montana State University offers undergraduate and
graduate programs in Art Education, Art History, Film, Fine Art, Music, Photography, and
Natural History Filmmaking.
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Montana State University Innovation Campus
MSUIC is a research support, technology transfer, and entrepreneurial development that,
when completed, will be home to over 500,000 square feet of space. The campus hosts
companies such as Aurora Driver, and Omega Biologicals. MSUIC hosts the only SCIF (Secure
Compartmental Information Facility) in the State of Montana and facilitates classified research
for both government agencies and the private sector. The EngineWorks Building is a state-
of-the-art office and R&D space on the campus. Notable tenants include Reveal Technology,
Resilient Computing, MSU QCore, and Montana Photonics and Quantum Alliance.
Big Sky Science Center
Proposed for Montana State University’s Innovation Campus, the Big Sky Science Center
features a state-of-the-art building dedicated to specialized laboratory spaces.The building
is proposed for approximately 60,000 square feet of lab, R&D, and light manufacturing space
spread out over two to three floors. The facility design includes HAZMAT control areas,
emergency backup power, a hydraulic loading bay, and redundant, high-capacity fiber-optic
connectivity.
Aurora Building
1101 Invention Drive is a 78,000 Class A R&D space completed in 2024. Located on Montana
State University’s Innovation Campus, the building hosts Aurora Innovation, a self-driving
long-haul logistics technology company. The facility includes state-of-the-art testing, R&D
labs, and office space. The facility is located within minutes of the Montana State University
main campus.
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Bozeman Yellowstone International Airport
In 2024, Bozeman Yellowstone International Airport (BZN) served 2,642,707 passengers, a 7.2
percent increase over 2023. BZN is the busiest airport in Montana, accounting for 42.0 percent
of all airline passengers in 2024. The airport serves 26 non-stop destinations operated by eight
airlines, including all three U.S. legacy carriers.
BZN plays a significant role in supporting the region’s tourism and recreation economy,
connecting travelers to outdoor recreation, guide companies, and the Big Sky and Bridger
Bowl ski areas. The airport also sees extensive use by business travelers. In 2024, Yellowstone
National Park alone received 4.7 million visitors, the second highest total since 1904. Many of
these visitors travel through BZN and Bozeman in route to Yellowstone, spending money at
local hotels, restaurants, and retailers.
Figure 2. Bozeman Yellowstone International Airport Destinations
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Comparison Cities
Bozeman can be benchmarked against other western cities with proximity to outdoor recreation, rapid
population growth, and a high quality of life such as Missoula, MT; Fort Collins, CO; Boulder, CO; Bend,
OR; and Billings, MT (Table 3).
In 2024, Bozeman had the highest median household income ($113,382) relative to the Montana
comparison cities for renters ($63,359) and homeowners ($79,903). Among all comparison cities,
Bozeman had the lowest median household income, which is expected given the higher populations and
larger economies of Fort Collins, Boulder, and Bend.
Each peer city hosts a major university and thus the students have an outsized impact on city
demographics. In Bozeman, students make up 27.8 percent of the population, a percentage most similar
to Boulder. Fort Collins, the largest of the comparison cities, has a student population accounting for 19.8
percent of the city. The large student population has an impact on the rental housing supply and skews
median household income down.
Table 3. Peer City Summary
Description Bozeman MT Billings MT Missoula MT Fort Collins CO Boulder CO Bend OR
Demographics
Population 61,662 124,360 77,980 173,039 109,191 109,500
Median Age 29.5 39.4 36.1 32.9 31.0 40.9
% Renter Households 56.5%37.0%52.0%49.6%55.8%37.6%
Median Household Income
Owner $113,382 $90,781 $98,194 $125,595 $150,211 $109,136
Renter $63,359 $44,178 $44,956 $55,149 $47,486 $66,155
All Households $79,903 $71,855 $65,329 $83,598 $85,364 $88,792
Employment
Jobs 45,538 75,518 57,900 102,996 101,355 65,607
Top 3 Sectors
#1 Health Care Health Care Health Care Health Care Education Health Care
#2 Retail Prof. and Tech.
Svcs.
Retail Education Prof. and Tech.
Svcs.
Retail
#3 Education Retail Hotel/
Restaurant
Retail Health Care Hotel/
Restaurant
Top 3 Growth Sectors (‘19-’25)[1]
#1 Hotel/Restaurant Manufacturing Prof. and Tech. Svcs.Arts/Rec.Wholesale Trade Ag./Forestry
#2 Construction Admin./Waste
Mgmt.
Public
Administration
Transportation/
Warehousing
Prof. and Tech.
Svcs.
Transportation/
Warehousing
#3 Finance Prof. and Tech.
Svcs.
Construction Wholesale
Trade
Manufacturing Health Care
Higher Education
Major College/University Montana State University Montana State University Billings
University of Montana Colorado State University University of Colorado Oregon State University - CascadesEnrollment (Fall 2024)17,144 4,129 10,811 34,218 38,799 1,296
% of City Population 27.8%3.3%13.9%19.8%35.5%1.2%
[1] Percent increase 2019-2024, min. 500 jobs
Source: ACS 5-Year Estimates, ESRI Business Analyst, Jobs EQ; Economic & Planning Systems
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Economic Base
Bozeman and Gallatin County have a diverse economy driven by key industries that
distinguish it from other midsize cities. While the Hotel/Restaurant and Retail Trade
industries are two of the largest employers, Bozeman and Gallatin County have large
Construction, Health Care, Education, Professional Services, Manufacturing, and Business
Support (Admin, Waste, and Mgt.) industries (Figure 3).
According to JobsEQ, a labor market data resource, Bozeman had 42,983 covered jobs
and Gallatin County had 73,179 covered jobs in 2024 (wage and salary jobs “covered” by
unemployment insurance). Bozeman is the largest employment center in Gallatin County,
accounting for 58.7 percent of jobs.
Figure 3. Covered Wage and Salary Employment, Bozeman and Gallatin County, 2024
2. Economy
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The jobs data in this report comes from three data sources: JobsEQ, the Current
Employment Statistics (CES) program from the Federal Bureau of Labor Statistics
(BLS), and the Local Area Unemployment Statistics (LAUS) program also published by
the BLS.
JOBSEQ
JobsEQ is a labor market analytics platform that consolidates employment data from
multiple public sources to estimate total employment by area, industry, and time
period. The primary data source JobsEQ uses is the Quarterly Census of Employment
and Wages (QCEW). QCEW is a Bureau of Labor Statistics (BLS) program that collects
employment and wage data for workers covered by state unemployment insurance
(representing approximately 97 percent of workers). QCEW data is place of work-based,
meaning workers are assigned to a geographic location (town, county, state, etc.) based
on where they work rather than where they live. Data is published quarterly within six
months after the end of each reported quarter. QCEW data excludes self-employed
workers and double-counts multiple job holders. Due to the breadth and accuracy of
coverage, QCEW is considered the “gold standard” for estimating employment.
CES
The CES program is a monthly survey conducted by the Bureau of Labor Statistics (BLS).
Like QCEW, the CES program produces estimates of employment by area, industry, and
time period based on place of work, however the methods and time periods differ. The
CES employment estimate is based on a survey of approximately 121,000 businesses
representing 631,000 worksites throughout the United States. CES coverage excludes
the self-employed, farm workers, and military personnel.
The survey data generated by the CES program is used to generate an estimate of
employment for a given area, industry, and time period. Data is published monthly, two
months after the close of the reference month. Data is published more frequently than
QCEW, however the estimates are less accurate (especially for small geographies) due
to the limited survey sample size.
LAUS
The LAUS program produces monthly estimates of the civilian labor force, employed
and unemployed people, and the unemployment rate by geography. LAUS data is
driven by employment measures from the Current Population Survey (CPS) and data
from a variety of other sources used to produce the sub-state estimates for employed
and unemployed people. Unlike QCEW and CES, the LAUS program does not publish
estimates of industry employment and is place of residence, not place of work based.
LAUS data is released monthly, two months after the end of the reference month.
ABOUT JOBS DATA
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The largest employers in Bozeman include Montana State University and Bozeman Health.
The Education and Health Care industries employ 5,570 and 6,388 people, respectively,
making them top industries in the city. Large education and healthcare sectors provide
economic stability and strong wages. Of the top 20 employers in Gallatin County, 12 are
located in Bozeman.
GALLATIN COUNTY TOP EMPLOYERS, 2024
EMPLOYER INDUSTRY EMPLOYMENT RANGE
Montana State University Education 1000 and over employees
Big Sky Resort LLC Arts/Rec.1000 and over employees
Bozeman Health Deaconess Hospital Health Care 1000 and over employees
Yellowstone Club Arts/Rec.1000 and over employees
Bridger Bowl Inc Arts/Rec.500-999 employees
Town Pump Inc Hotel/Restaurant 500-999 employees
Bozeman Health Medical Group Health Care 250-499 employees
Costco Retail Trade 250-499 employees
Kenyon Noble Lumber CO Retail Trade 250-499 employees
Oracle America Inc Information 250-499 employees
Ranch & Home Supply LLC Retail Trade 250-499 employees
Ressler Motor Company Retail Trade 250-499 employees
Town & Country Foods Inc Retail Trade 250-499 employees
Walmart Retail Trade 250-499 employees
Williams Plumbing & Heating Inc Construction 250-499 employees
Albertsons Retail Trade 100-249 employees
Billings Clinic Health Care 100-249 employees
Bozeman Deaconess Health Services Health Care 100-249 employees
Gibson Brands Inc Manufacturing 100-249 employees
Zoot Enterprises Information 100-249 employees
Source: Montana Department of Labor and Industry, Economic & Planning Systems
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Job Trends
In 2024, Gallatin County had 73,179 covered jobs and Bozeman had 42,983, constituting 58.7
percent of employment in the county (Table 4). Since 2019, Gallatin County added 12,591
jobs and Bozeman added 5,582. This corresponds to an annual average increase of 2,158 and
1,116, or an annual average growth rate of 3.8 percent and 2.8 percent, respectively. Between
2023 and 2024, jobs in Bozeman grew by 3.7 percent, or 1,531 jobs. This is 0.9 percentage
points above the 2019-2024 annual average growth rate.
Table 4. Total Employment, 2019-2024
2019-2024
Employment 2019 2020 2021 2022 2023 2024 Change Ann. #Ann. %
Bozeman 37,401 35,746 37,889 39,257 41,452 42,983 5,582 1,116 2.8%
Yearly % Change ---4.4%6.0%3.6%5.6%3.7%14.9%
Gallatin County 60,588 59,024 63,605 66,926 70,682 73,179 12,591 2,518 3.8%
Yearly % Change ---2.6%7.8%5.2%5.6%3.5%20.8%
Bozeman % of G.C.61.7%60.6%59.6%58.7%58.6%58.7%44.3%
Source: Jobs EQ; Economic & Planning Systems
Employment growth in Bozeman and Gallatin County was driven by growth in the Hotel/
Restaurant, Construction, Health Care, Retail Trade, and Professional Services industries
(Figure 4). These five industries contributed to 85.0 percent of employment growth in
Bozeman and 69.2 percent of growth in Gallatin County.
Between 2019 and 2024, only four industries lost employment in Bozeman: Arts and
Recreation (-233), Information (-31), Manufacturing (-31), and Transportation (-86). Of these,
only the Arts and Recreation industry lost more than 200 employees. The industries that lost
employment in Gallatin County over the same period were Information, Manufacturing, and
Transportation.
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Figure 4. Private Employment Trends, Bozeman and Gallatin County, 2019-2024
3,293
1,912
1,592
1,073
843
731
576
506
367
347
338
313
293
264
162
76
22
1
-31
-31
-56
1,990
679
1,094
495
486
-233
117
104
274
267
222
217
44
9
74
61
10
13
-125
-131
-86
-250 750 1,750 2,750 3,750
Hotel/Resturant
Construction
Health Care
Retail Trade
Prof. & Tech. Services
Arts/Rec.
Admin/Waste Management
Wholesale Trade
Other
Finance and Insurance
Public Administration
Education
Ag./Forest/Hunting
Real Estate
Unclassified
Management
Utilities
Mining/Oil
Information
Manufacturing
Transportation
Change in Jobs
Gallatin County
Bozeman
Source: Jobs EQ; Economic & Planning Systems
Z:\Shared\Projects\DEN\233073-Bozeman MT 2025Q2 Market Update\Data\[233073 -Economy 6-16-2025.xlsx]T -
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Unemployment Rate
Unemployment rates in Bozeman and Gallatin County have typically been in the 2-3 percent
range, which is very low unemployment (Figure 5). As a result of the COVID-19 pandemic,
unemployment rose in 2020, but fell as the labor market recovered. Shortly following the
pandemic, the unemployment rate continued to fall, reaching a low point of 1.8 percent in
Bozeman and 2.0 percent in Gallatin County in 2022. In the 2.5 years since, the unemployment
rate has climbed slightly to 2.5 percent and 2.3 percent in the city and county, respectively. The
consistently low unemployment rates reflect a tight labor market and has led to strong wage
growth as employers compete for a limited supply of workers.
Figure 5. Unemployment Rate, 2010-August 2025
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Wages
In 2024, the average annual wage in Gallatin County was $64,698 (Table 5). The highest
earnings were in the Professional Services industry, which paid on average $119,113 per year.
The lowest paying industry was Arts and Recreation with an annual average wage of $32,225.
Between 2019 and 2024, wages in Gallatin County grew at an annual rate of 6.9 percent.
Over the same period, inflation in the mountain west region was 31.0 percent, or 6.2 percent
annually, meaning that wage growth exceeded inflation and real incomes rose.
The Hotel/Restaurant, Construction, Health Care, Retail Trade, Professional Services, and Art
and Recreation industries added the most jobs between 2019 and 2024. These six industries
added 9,444 jobs, accounting for 75.0 percent of countywide employmentgrowth (Table 5). In
addition to a growing number of jobs, these industries experienced strong wage growth. The
average annual wage for the Hotel/Restaurant industry grew by 78.4 percent, or 12.3 percent
annually. Professional Services, the highest paying industry in 2024, saw 58.2 percent wage
growth, or 9.6 percent annually, over the same period. These trends highlight the economic
dynamics of Gallatin County as the services sector grows and diversifies as the region expands.
Table 5. Job and Wage Growth, Top Sectors, Gallatin County, 2019-2024
2019-2024 Job Growth 2019 Avg. Ann. Wage 2024 Avg. Ann. Wage
Avg. Ann. Wage Growth Description
Total - All Industries 12,591 $46,259 $64,698 6.9%
Hotel/ Restaurant 3,293 $22,657 $40,411 12.3%
Construction 1,912 $56,768 $79,092 6.9%
Health Care 1,592 $52,060 $63,192 4.0%
Retail 1,073 $34,415 $47,026 6.4%
Prof. & Tech. Services 843 $75,285 $119,113 9.6%
Arts/ Recreation 731 $24,898 $32,225 5.3%
Source: Jobs EQ; Economic & Planning Systems
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Of the 3,726 jobs added in Bozeman between 2022 and 2024, 2,336, or 62.7 percent, were
jobs that pay wages in the lowest wage quartile ($0 - $57,749), or the bottom 25 percent of
earners (Figure 6). The first wage quartile includes the Accommodations and Food Service
industry, the fastest growing industry in Bozeman, accounting for 39.6 percent of employment
growth. This industry pays an annual average wage of $40,393, the second lowest in Bozeman.
The first quartile also includes employment in the Arts and Recreation, Agriculture, Retail
Trade, and Education industries.
Employment growth in the first and lowest wage quartile is due to growth in Bozeman’s
hospitality industry, which drives demand for low-paying service jobs. Recent hotel
development with plans for continued expansion indicates the trend is likely to continue.
The second quartile, representing the next 25 percent of wage earners with annual salaries
between $57,749 and $69,573, accounted for 13 percent of job growth. This quartile includes
jobs in the Manufacturing, Real Estate, Administrative Support, and Health Care industries.
The third quartile, covering employees with salaries ranging from $69,573 to $89,141,
contributed to 20 percent of employment growth. Employees in the Construction, Wholesale
Trade, Management, and Public Administration sectors are likely to have annual earnings in this
quartile. The fourth quartile includes the highest wage earners. Workers earning over $89,141
are included in this bracket. This quartile added the fewest jobs, 5 percent of the total. Typical
roles included earners in the Utilities, Information, Finance, and Professional Services industries.
Figure 6. Change in Employment by Wage Quartile and 1-Person AMI, Bozeman, 2022-2024
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Workforce
Bozeman has a highly educated workforce. Among the population 25 years or older, 63.7
percent have a bachelor’s degree or higher (Table 6). Relative to the peer cities, only Boulder
has a more highly educated population. The presence of MSU and the high concentration
of skilled jobs, like those found in the Information, Professional Services, and Health Care
industries, are drivers of an educated workforce. Places with a high quality of life are also able
to attract skilled labor as highly educated workers have more choices and flexibility in where
they choose to work and live.
Table 6. Population 25+ by Educational Attainment, Bozeman, 2025
Education Level
Bozeman
Billings
Boulder
Bend
Fort Collins
Missoula
Population 25+37,662 86,683 67,526 78,962 112,205 54,278
High School or Less, No Diploma 3.0%4.2%2.4%3.4%2.1%3.2%
High School Graduate or Equivalent 13.2%29.6%5.7%15.3%13.4%18.6%
Some College/No Degree 13.8%19.0%8.6%17.3%14.3%16.8%
Associate’s Degree 6.3%10.5%4.2%10.7%8.6%10.0%
Bachelor’s Degree 38.6%24.7%38.1%33.9%34.9%31.5%
Grad/Professional Degree 25.1%12.1%40.9%19.4%26.7%20.0%
Total 100.0%100.0%100.0%100.0%100.0%100.0%
Bachelor’s Degree of Higher 63.7%36.8%79.1%53.3%61.6%51.4%
Note: Color scale correspond to row values.
Source: ESRI Business Analyst; Economic & Planning Systems
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Government Employment
In 2024, there were 9,031 government employees in Gallatin County across federal, state,
and local government, counting for 11.4 percent of total employment (Table 7). Federal
government employment primarily consists of jobs in the Department of Interior (DOI),
including the National Parks Service, Bureau of Land Management, Fish and Wildlife Service,
and related agencies. State government employment is concentrated in the education industry
due to the impact of MSU. Local government employees are primarily in the Education and
Public Administration industries.
Government employment is covered by QCEW with the exception of elected officials,
members of the armed forces, contract workers, and temporary workers. Federal government
employment in Gallatin County is likely undercounted as many DOI workers are employed on
a temporary or contract basis. The impacts of the October 2025 government shutdown and
recent cuts to the federal workforce are not yet known but are expected to negatively impact
federal and state government employment.
Table 7. Government Employment, 2019-2024
2019-2024
Employment 2019 2020 2021 2022 2023 2024 Change Ann. #Ann. %
Bozeman
Federal Government 305 293 275 270 290 337 32 6 2.0%
State Government 4,146 3,979 3,845 4,059 4,192 4,348 202 40 1.0%
Local Government 1,983 1,938 1,957 2,007 2,063 2,112 129 26 1.3%
Total 6,435 6,210 6,077 6,337 6,544 6,798 362 72 1.1%
Gallatin County
Federal Government 570 617 590 555 581 662 92 18 3.0%
State Government 4,641 4,453 4,312 4,543 4,691 4,867 225 45 1.0%
Local Government 3,325 3,282 3,301 3,341 3,439 3,502 177 35 1.0%
Total 8,537 8,351 8,204 8,439 8,712 9,031 494 99 1.1%
Pct. of Total Employment
Bozeman 16.1%16.3%15.0%15.2%14.9%14.9%
Gallatin County 13.0%13.0%11.9%11.7%11.4%11.4%
Source: Jobs EQ; Economic & Planning Systems
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This chapter provides an overview of the commercial real estate trends in the office,
industrial, and retail markets. This analysis includes a summary of the total inventory,
rental rates, vacancy rates, and deliveries. Commercial real estate data comes from CoStar,
a subscription real estate database and market information service. CoStar relies on broker-
reported data and as a result, it frequently updates its information, and historical data may
change as data are updated.
Office Market Trends
Through 2025 Q3, Gallatin County had 4.3 million square feet of office space, 3.4 million of
which was in Bozeman. From 2020 to 2025 Q3, Gallatin County added approximately 483,959
square feet of office space, averaging 96,792 square feet annually. Over the same period,
Bozeman added 365,497 square feet, averaging 73,099 annually (Table 8). Between 2024 and
2025 Q3, Bozeman added 85,000 square feet of office space. This corresponds to 2.0 percent
growth, in line with recent growth rates. Bozeman is the hub for office space in Gallatin County
with 79.4 percent of square feet within the city. Since 2020, Bozeman has captured 75.5
percent of inventory growth.
As of 2025 Q3, average rent per square foot in Gallatin County and Bozeman was $25.71 and
$26.50, respectively. Since 2020, average rent per square foot has risen by $4.89 in Bozeman
and $4.73 in Gallatin County. Year over year, rent per square foot rose by 1.7 percent in
Bozeman, below the recent trend. Since 2020, office vacancy rates have remained below 4.9
percent in Bozeman and 5.9 percent in Gallatin County. Vacancy rates in Bozeman and Gallatin
County have increased since reaching lows in 2022, more than doubling in the three years
since. However, they still remain low. Increasing rental rates and low vacancy rates indicate
strong demand for office space and a growing commercial real estate market.
3. Commercial Real Estate
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Table 8. Office Market Summary , 2020-2025 Q3
2020-2025 Q3
Description 2020 2021 2022 2023 2024 2025 Q3 Total Ann. #Ann. %
Inventory (Sq. Ft.)
Bozeman 3,038,994 3,066,863 3,078,863 3,094,473 3,319,491 3,404,491 365,497 73,099 2.3%
Gallatin County Total 3,801,987 3,829,856 3,843,246 3,882,856 4,185,874 4,285,946 483,959 96,792 2.4%
Bozeman % of Gallatin County 79.9%80.1%80.1%79.7%79.3%79.4%75.5%
Bozeman YoY % Change --0.9%0.4%0.5%7.3%2.6%12.0%
Avg. Rent per Sq. Ft.
Bozeman $21.61 $21.63 $22.92 $25.20 $26.06 $26.50 $4.89 --4.2%
Gallatin County Overall $20.98 $20.97 $22.30 $24.74 $25.64 $25.71 $4.73 --4.2%
Bozeman YoY % Change --0.1%6.0%9.9%3.4%1.7%22.6%
Vacancy Rate
Bozeman 2.9%1.7%1.8%3.5%3.4%4.9%
Gallatin County Overall 2.6%1.5%1.6%3.2%2.9%5.9%
Bozeman YoY Difference ---1.2%0.1%1.7%-0.1%1.5%2.0%
Source: CoStar; Economic & Planning Systems
From 2010 to 2025 Q3, 72.1 percent of new office space was delivered in Bozeman (Figure 7).
Since 2020, 78.1 percent of office space was delivered within city limits. The concentration of
new office space in Bozeman highlights the city’s role as the Gallatin Valley region’s primary
economic center.
Figure 7. Office Deliveries, 2010-2025 Q3
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Notable Projects
Notable office projects built since 2024 are listed below in Table 9. New development is being
built in Bozeman and Four Corners with a significant portion of recent deliveries occurring at
the MSU Innovation Campus.
Table 9. Recent Office Development, Gallatin County
Address/ Name City Year Built RBA
Notable Deliveries
161 Haley Springs Rd Four Corners 2025 15,072
EngineWorks Bozeman 2025 85,000
4351 Fallon St Bozeman 2024 6,000
580 Zoot Enterprises Ln Four Corners 2024 25,080
Barnard Construction Bozeman 2025 --
Under Construction
Kiln Bozeman Bozeman 2025 30,621
Source: CoStar; Economic & Planning Systems
EngineWorks – Opened in 2025, EngineWorks will provide 80,000 square feet of
customizable office space. As part of MSU’s Innovation Campus, the facility offers access to
shared amenities including conference rooms, event spaces, outdoor areas, and recreation
space. As of 2025 Q3, three tenants lease space: Resilient Computing, a computer technology
company, Reveal, a defense technology firm, and QCORE, the MSU quantum technology
facility.
Kiln Bozeman – Kiln Bozeman is a coworking space that opened in late 2025. The location
features over 30,000 square feet of office space and offers leasable spaces between 150 and
900 square feet in size. In addition to coworking and office space, Kiln provides tenants access
to shared meeting rooms, studios, and relaxation rooms. Kiln is located at the old Town and
County Foods building that sold in December of 2023.
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Industrial/Flex Market
As of 2025 Q3, Gallatin County had 5.1 million square feet of industrial and flex space, 1.2
million square feet (23.4 percent) of which were in Bozeman (Table 10). Between 2020 and
2025 Q3, Gallatin County added 685,701 square feet of industrial space for an average of
137,140 square feet per year, corresponding to a 2.9 annual average growth rate. Over the
same period, Bozeman’s inventory grew by 166,494 square feet for an annual average of
33,299 and an annual average growth rate of 3.0 percent, capturing 24.3 percent of Gallatin
County growth. Lower land costs outside Bozeman drove industrial growth outside city limits.
However, Bozeman is still a key location for industrial development in the county. Between
2024 and 2025 Q3, Bozeman has gained no additional industrial square footage.
The vacancy rate for industrial and flex space in Gallatin County was 4.3 percent, compared to
0.4 percent in Bozeman. Vacancy rates are lower in Bozeman compared to Gallatin County and
have consistently remained below 3.0 percent since 2020. Rent per square foot was $14.25
in Gallatin County, having risen by $1.52 since 2020. Recent industrial and flex rent was not
available for Bozeman due to reporting inconsistencies in the source data. Rent in Bozeman
stood at $15.81 per square foot in 2023 (the last year with reliable data), approximately $1.30
higher than Gallatin County at that time.
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Table 10. Industrial/Flex Summary, 2020-2025 Q3
2025 Q3
2020-2025 Q3
Description 2020 2021 2022 2023 2024 Total Ann. #Ann. %
Inventory (Sq. Ft.)
Bozeman
Industrial 850,441 850,441 850,441 850,441 928,441 928,441 78,000 15,600 1.8%
Flex 178,255 178,255 242,255 257,255 264,255 266,749 88,494 17,699 8.4%
Total 1,028,696 1,028,696 1,092,696 1,107,696 1,192,696 1,195,190 166,494 33,299 3.0%
Gallatin County
Industrial 3,697,787 3,776,163 3,791,163 4,020,551 4,146,501 4,255,077 557,290 111,458 2.8%
Flex 732,095 732,095 796,095 847,054 858,012 860,506 128,411 25,682 3.3%
Total 4,429,882 4,508,258 4,587,258 4,867,605 5,004,513 5,115,583 685,701 137,140 2.9%
Bozeman % of Gallatin County 23.2%22.8%23.8%22.8%23.8%23.4%24.3%
Bozeman YoY % Change -2.7%0.0%6.2%1.4%7.7%0.2%16.2%
Gross Rent per Sq. Ft.
Bozeman
Industrial $12.64 $12.15 $15.06 $15.09 ---------
Flex $19.95 $25.83 $24.50 $16.12 ---$24.06 $4.11
Total $17.44 $22.32 $21.14 $15.81 ---$24.06 $6.62
Gallatin County
Industrial $10.73 $11.28 $13.88 $14.14 $13.06 $13.77 $3.05
Flex $17.11 $22.14 $22.41 $15.22 $12.88 $15.25 -$1.86
Total $12.73 $14.05 $16.91 $14.50 $13.04 $14.25 $1.52
Bozeman YoY % Change 44.9%28.0%-5.3%-25.2%------
Vacancy Rate
Bozeman
Industrial 0.3%0.0%0.5%0.9%1.1%0.4%
Flex 9.3%0.5%11.1%3.4%0.0%0.2%
Total 1.9%0.1%2.9%1.4%0.8%0.4%
Gallatin County
Industrial 0.8%0.6%0.2%1.2%2.7%3.5%
Flex 4.0%0.6%3.9%2.4%1.6%8.3%
Total 1.3%0.6%0.9%1.4%2.5%4.3%
Bozeman YoY % Difference 0.2%-0.3%0.5%0.4%0.2%-0.7%0.1%
Source: CoStar; Economic & Planning Systems
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Between 2010 and 2025 Q3, 1.54 million square feet of industrial/flex space has been
delivered in Gallatin County (Figure 8). Of that, 770,358 square feet, or 49.9 percent, is
located within Bozeman city limits. Historically, most industrial development in Gallatin
County outside of Bozeman has been concentrated in Belgrade and Four Corners. However,
the recent delivery of 1101 Invention Drive and construction of the Big Sky Science Center
in 2027, both on MSU Innovation Campus property, will add additional square footage to the
Bozeman market (Table 11).
Figure 8. Industrial/Flex Deliveries, 2010-2025 Q3
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Table 11. Recent Industrial/Flex Developments, Gallatin County
Description City
Year Built/
Expected RBA Avg. Rent/ SF
Notable Deliveries
The Foundry Belgrade 2025 53,000 $476
1102 Jackrabbit Ln Belgrade 2025 48,000 $314.52-325.00
205 Fletching Way Belgrade 2025 4,850 $20
120 Donjo Belgrade 2024 9,847 $8-10
121 Donjo Ave Belgrade 2024 2,840 18
211 Town Center Unit 1B Big Sky 2024 1,539 $8-10
1101 Invention Dr Bozeman 2024 78,000 $13-16
Under Construction
Big Sky Science Center Bozeman 2027 204,400 --
1580 Bobcat Dr Four Corners 2025 10,590 $15
Source: CoStar; Economic & Planning Systems
Notable Projects
Big Sky Science Center – Located just north of Montana State University’s Innovation
Campus, the development (expected to be completed in 2027), features two buildings
dedicated to laboratory and R&D space. The first building will have 94,800 square feet of lab,
R&D, and light manufacturing space spread out over three floors. The second building will
include 109,600 square feet of space for advanced R&D and light manufacturing over four
floors. The facility will include HAZMAT control areas, emergency backup power, a hydraulic
loading bay, and fiber optic internet. Nearby tenants include the EngineWorks building,
completed in 2025, MSU’s Quantum Core space, Aurora Innovation, and the MSU Applied
Research Lab.
Aurora Building – 1101 Invention Drive is a 78,000 class A R&D space completed in 2024.
Located in Montana State University’s Innovation Campus, the building hosts Aurora
Innovation, a self-driving technology company. The facility includes state of the art testing,
R&D labs, and office space. The facility is located within two miles of Montana State University.
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Retail Market
As of 2025 Q3, Gallatin County has 6.7 million square feet of retail space, 4.7 million (70.2
percent) of which is located within Bozeman (Table 12). An increasing share of Gallatin County
retail space is being developed outside of Bozeman. Between 2020 and 2025 Q3, 42.2 percent
of additional retail space was built in Bozeman. Between 2024 and 2025 Q3, retail square
footage remained largely unchanged. After a long period of flat rents, rents increased by 19
percent from 2024 to 2025 Q3 to $23.71 per square foot, compared to $19.11 in Gallatin
County. Since 2020, rents in Bozeman have grown by $3.37 in Bozeman compared to a slight
drop of $1.11 in Gallatin County.
The retail vacancy rate in Gallatin County and Bozeman was 1.8 percent and 2.1 percent as
of 2025 Q3, respectively. Bozeman saw a full percentage increase in vacancy rate between
2024 and 2025 Q3 while Gallatin County saw a more modest increase of 0.4 percent. The
combination of low vacancy rates and slow growth in retail space suggests that the retail
market has stabilized in Bozeman. Future retail development is likely to be built to suit and not
speculative due to the effects of a changing retail market and e-commerce competition.
Table 12. Retail Summary, 2020-2025 Q3
2020-2025 Q3
Description 2020 2021 2022 2023 2024 2025 Q3 Total Ann. #Ann. %
Inventory (Sq. Ft.)
Bozeman 4,540,908 4,536,908 4,601,839 4,623,839 4,679,947 4,685,272 144,364 28,873 0.6%
Gallatin County Total 6,314,130 6,310,130 6,375,061 6,460,316 6,650,559 6,655,884 341,754 68,351 1.1%
Bozeman % of Gallatin County 71.9%71.9%72.2%71.6%70.4%70.4%42.2%
Bozeman YoY % Change 1.2%-0.1%1.4%0.5%1.2%0.1%3.4%
Avg. Rent per Sq. Ft.
Bozeman $20.35 $21.18 $21.32 $20.01 $19.97 $23.71 $3.37 --3.1%
Gallatin County Overall $20.23 $21.38 $21.23 $19.83 $20.28 $19.11 -$1.11 ---1.1%
Bozeman YoY % Change -7.6%4.1%0.7%-6.1%-0.2%18.8%19.2%
Vacancy Rate
Bozeman 1.3%1.0%1.3%1.8%1.1%2.1%
Gallatin County Overall 1.4%0.9%1.0%1.4%1.4%1.8%
Bozeman YoY Difference -0.5%-0.3%0.3%0.5%-0.7%1.0%0.4%
Source: CoStar; Economic & Planning Systems
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Between 2010 and 2025 Q3, 847,392 square feet of retail space was delivered in Gallatin
County, corresponding to 58,293 square feet per year. Of that, 648,187, or 74.1 percent was
within Bozeman city limits, or 43,212 square feet per year. Approximately 240,000 square feet
of this was in 2011 when two large car dealerships were built on S Cottonwood in Bozeman.
Since 2020, retail construction has been increasingly concentrated in the areas of Gallatin
County outside of Bozeman. Four Corners, Belgrade, and other areas of unincorporated
Gallatin County are capturing a higher share of retail development. The growth of the
surrounding region is creating more retail demand in Belgrade and Four Corners.
Figure 9. Retail Deliveries, 2010-2025 Q3
Bozeman’s retail inventory is comprised of a wide variety of national grocery store chains,
large retailers, and small businesses. There are 10 full-service supermarkets in Bozeman
(including the Walmart Supercenter) as well as several smaller specialty food stores and
independent grocers such as the Community Food Co-op. Bozeman also has several national
general merchandise and home improvement anchor retailers including Costco, Target, Home
Depot, Lowe’s, Kohl’s, Best Buy, and Macy’s.
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BOZEMAN RETAIL INVENTORY
DESCRIPTION STORE TYPE AVG. SQ. FT.DESCRIPTION STORE TYPE AVG. SQ. FT.
Supermarkets and Grocery Stores Shoppers’ Goods
WinCo Foods 75,000 Walmart 200,550
Rosauers Foods & Drug Center 60,045 Costco Wholesale 114,512
Safeway 56,117 Target 107,649
Smith's Grocery Pickup and Delivery 57,000 Kohl's 57,045
Albertsons 53,746 Sportsman's Warehouse 45,860
Whole Foods Market 31,718 Conlin's Furniture 44,100
Town and Country Foods 26,449 Hobby Lobby 41,796
Town and Country Foods 20,404 Bob Ward's Sports & Outdoors 30,495
Building Material and Garden Ross Dress For Less 30,130
Lowe’s 99,440 REI 25,177
The Home Depot 95,337 Barnes & Noble 25,000
Kenyon Noble Lumber and Hardware 57,375 Staples 22,194
Murdoch's Ranch & Home Supply 48,904 T.J. Maxx 20,388
Ashley HomeStore 30,800 Michaels 20,372
Ace Hardware 24,302 Universal Athletic 20,000
Commercial Metals 24,275
Harbor Freight Tools 19,582
Source: CoStar; Economic & Planning Systems
Notable Projects and Inventory
1185 Fremont Street – Located in unincorporated Gallatin County between Four Corners
and Belgrade off of Jackrabbit Frontage Road, 1185 Fremont Street is a retail property that
includes 28 commercial units. The building is set to be fully constructed in March of 2026 and
is currently 93.9 percent leased. Currently, 24 units are occupied representing a mix of leisure,
medical, and restaurant including D1 Training, Stepping Stones Preschool, and Proud Rooster
Texas BBQ.
Gallatin Crossing – Gallatin Crossing is a modern, mixed-use retail redevelopment of Gallatin
Valley Mall. The $50 million dollar redesign is led by the Billings, MT based Corning Companies
and includes open-air retail, medical offices, and a pedestrian plaza. In fall 2025, an additional
20,000 square feet of retail space opened. Notable new tenants include upscale brands such as
Lululemon, Sephora, Pandora, and Arhaus.
Table 13. Recent Retail Projects, Gallatin County
Property Name/ Address City
Year Built/
Expected
Buildable
Area Avg. Rent/ SF
Under Construction
1185 Fremont St Uninc. Gallatin County 2026 63,000 $17.00
Gallatin Crossing Bozeman 2025 20,000 $25.40 - 29.94 (Est.)
Source: CoStar; Economic & Planning Systems
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This chapter provides an overview of the hotel market in Bozeman and Gallatin County. It
summarizes market trends and conditions including key metrics such as inventory, average
daily rate (ADR), occupancy rate, deliveries and recent development. Hotel data comes from
STR, Inc. (previously known as Smith Travel Research), a subsidiary of CoStar. STR maintains
a real estate database and market information service that relies on source-reported data
and as a result, it frequently updates its information, and historical data may change as more
detailed information becomes available.
Hotel Market Snapshot
In 2025, Gallatin County had 6,637 hotel rooms, Bozeman accounted for 46.0 percent, or
3,050 rooms (Table 14). Between 2020 and July 2025, Gallatin County added 1,183 hotel
rooms. The hotel room base has increased rapidly since 2020 as post-pandemic travel
increased. Over the period between 2020 and 2025, Gallatin County as a whole added an
average of 237 rooms per year, corresponding to a 4.0 percent annual average growth rate.
Over the same period, Bozeman added an average of 138 rooms per year, or a 5.2 percent
annual average growth rate. The increase in hospitality demand put upward pressure on ADR
which stood at $213 in Gallatin County and $171 in Bozeman as of July 2025. Since 2020,
ADR grew at an annual average rate of 13.4 percent in the county and 10.8 percent in the city.
The hotel market has strong average annual occupancy at about 70.0 percent.
The region has significant tourist attractions that keep demand strong in both summer and
winter peak seasons. Yellowstone National Park has seen a boom in visitors since the COVID-19
Pandemic and the area is a frequent stopover for people visiting Glacier, Yellowstone, and Grant
Teton National Parks. The nearby Big Sky and Bridger Bowl ski areas also draw visitors to the
region as well.
Table 14. Hotel Summary, 2020-July 2025
2025 Q3
2020-July 2025
Description 2020 2021 2022 2023 2024 Total Avg.Ann. %
Inventory Rooms
Bozeman 2,362 2,465 2,608 2,725 2,828 3,050 688 138 5.2%
Gallatin County 5,451 5,679 5,851 5,966 6,315 6,637 1,186 237 4.0%
Bozeman % of Gallatin County 43.3%43.4%44.6%45.7%44.8%46.0%58.0%
Average Daily Rate
Bozeman $102 $150 $180 $183 $186 $171 $68 $14 10.8%
Gallatin County $114 $157 $193 $207 $212 $213 $99 $20 13.4%
Annual Occupancy Rate
Bozeman 58.4%73.4%72.5%73.8%74.0%69.4%
Gallatin County 53.1%67.9%66.6%67.4%67.2%64.3%
Source: CoStar; Economic & Planning Systems
4. Accommodations Market
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In 2025 Q3 there were 667 rooms built in Gallatin County and Bozeman (Figure 10). This is
the most deliveries in a single year in Gallatin County since 2010 and an increase of 320 rooms
from 2024. Since 2010, Gallatin County added 2,652 room with Bozeman accounting for 1,485
rooms. Since 2020, 1,665 rooms have been delivered in Gallatin County and 912 in Bozeman
as hotel development rebounded after the pandemic.
Notable hotel deliveries outside of Bozeman include the Home2 Suites in Four Corners (2025),
EVEN Hotels (2024), Extended Stay America Premier Suites (2024), and the Montage Big Sky
(2021). The majority of new hotels outside Bozeman are concentrated in the immediate area,
often near the airport. The Montage Big Sky, a luxury hotel catering to ski travelers, is the only
new hotel built outside the Gallatin Valley.
Figure 10. Hotel Room Deliveries 2010-July 2025
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Notable Projects
Between 2020 and 2025 Q3, Gallatin County added 576 economy rooms and 742 upscale
rooms for a total of 1,318 rooms as shown in Table 15. By 2027, the room base in the county is
expected to grow by 696 rooms as hotels under construction add 464 economy rooms and 232
upscale rooms. Hotel development outside of Bozeman occurred primarily in Belgrade near
the airport, which added 244 rooms with 359 rooms under construction.
Table 15. Notable Hotel Development and Construction, Gallatin County 2020-2027
Description City Rooms
Year Built/
Expected Status
Recent Economy DeliveriesEverhome Suites Bozeman Bozeman 113 2025 Existing
Home2 Suites by Hilton Bozeman Four Corners Four Corners 100 2025 Existing
TownePlace Suites Bozeman West Bozeman 107 2025 Existing
Extended Stay America Premier Suites - Belgrade Belgrade 124 2024 Existing
Home2 Suites by Hilton Bozeman Midtown Bozeman 103 2024 Existing
Wagon Wheel Hotel West Yellowstone 29 2022 Existing
Total --576 ----
Expected Economy Development
Fairfield by Marriott Inn & Suites Bozeman Bozeman 110 2027 Under Construction
Hampton Inn & Suites Bozeman Downtown Bozeman 125 2026 Under Construction
Hampton by Hilton Belgrade Bozeman Airport Belgrade 125 2026 Under Construction
Atwell Suites Belgrade - Bozeman Airport Belgrade 104 2025 Under Construction
Total --464 ----
Recent Upscale Deliveries
EVEN Hotels Bozeman Yellowstone Intl Arpt Belgrade 120 2024 Existing
Courtyard by Marriott Bozeman Bozeman 117 2023 Existing
AC Hotel Bozeman Downtown Bozeman 143 2022 Existing
Residence Inn by Marriott Bozeman Downtown Bozeman 104 2021 Existing
Montage Big Sky Big Sky 136 2021 Existing
Kimpton Armory Hotel Bozeman Bozeman 122 2020 Existing
Total --742 ----
Expected Upscale Development
Hyatt House Bozeman Bozeman 102 2027 Under Construction
Hyatt Place Bozeman Yellowstone Airport Belgrade 130 2025 Under Construction
Total --232 ----
Total Deliveries --1,318 ----
Total Development --696 ----
Source: CoStar; Economic & Planning Systems
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Hampton Inn & Suites Bozeman Downtown – Bennet Hospitality in conjunction with R4
Architecture are set to deliver a 125 room, 4 story Hampton Inn & Suites at the intersection of
5th and Main Street in Bozeman. The development will include ground floor retail and onsite
parking. The development is located at the site of the abandoned City Center Motor Inn and
Black Angus restaurant and had been vacant since 2017.
Everhome Suites Bozeman – Everhome Suites is an extended-stay hotel brand owned by
Choice Hotels, a multinational hospitality firm. Everhome Suites offers fully equipped kitchens,
on site laundry, and additional amenities in its midscale extended stay offerings. The Bozeman
location is located less than two miles from Montana State University and the MSU Innovation
Campus.
TownPlace Suites Bozeman West – TownPlace Suites is a Marriott owned brand of extended-
stay hotels. The Bozeman West location opened in July 2025 and features guest rooms with
full kitchens, work desks, and refrigerators. The hotel is located in north Bozeman, seven miles
from Bozeman Yellowstone International Airport, four miles from downtown Bozeman, and
four miles from MSU.
Occupancy Trends
As of July 2025, hotels in Bozeman were 83.2 percent occupied and the average daily
occupancy was 69.4 percent (Figure 11). Peak hotel occupancy in Gallatin County and
Bozeman occurs each July during the summer tourist peak, with a secondary peak occurring
between February and March during ski season. Peak season aligns with the summer and
winter recreation peaks in February-March and June-August.
Figure 11. Occupancy Rate by Month, January 2022-July 2025
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Average Daily Rate Trends
Average Daily Rate (ADR) is measure of the annual average revenue per paid occupied room
on a given day. Through July 2025, the ADR in Gallatin County and Bozeman was $213 and
$171, respectively (Figure 12). ADR in the city and county trended together between 2010
and 2021; however, in 2022, Bozeman saw a decline in ADR and Gallatin County ADR growth
plateaued. A growing overall bed base coupled with an increase in the number of economy
hotel rooms contributed to the flattening of ADR.
Figure 12. Average Daily Rate, 2010-July 2025
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This chapter provides an overview of the housing market in Bozeman, including an analysis
of building permit trends, home prices, the rental market, and key indicators of housing
affordability and housing demand.
Construction
Bozeman’s housing market has seen strong growth since 2020 (Table 16). Between 2020 and
2024, the City issued 7,217 new construction permits, or 1,443 on average each year. The
majority of permits were for single unit homes, accounting for 45.2 percent of the total. Single
unit attached housing (townhomes, duplexes, triplexes, and fourplexes) was the second largest
contributor representing 36.7 percent of permits. Multihousehold units comprised 13.9
percent of new construction. Finally, accessory dwelling units (ADUs) made up 4.1 percent of
permits. Note: the City has revised its system of tracking building permits, thus the data in this
report may not align with previous versions.
Table 16. Bozeman Permit Trends, 2020-2024
2020-2024
Description 2020 2021 2022 2023 2024 Total Ann. #% of Tot.
Single Family 873 787 472 663 466 3,261 652 45.2%
Duplex 205 205 66 145 168 789 158 10.9%
Triplex 51 46 50 80 48 275 55 3.8%
Fourplex 61 77 60 23 141 362 72 5.0%
Detached Accessory Dwelling Unit 22 82 84 74 32 294 59 4.1%
Multifamily / Condo (5+ units)144 266 152 237 207 1,006 201 13.9%
Townhome 357 167 358 137 211 1,230 246 17.0%
Total 1,713 1,630 1,242 1,359 1,273 7,217 1,443 100.0%
Source: City of Bozeman; Economic & Planning Systems
5. Residential Real Estate
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Housing Prices
Through July of 2025, the median price for a single-household residence in Bozeman was
$796,500, a 2.2 percent increase from the prior year (Table 17). Overall, Gallatin County and
its communities have experienced a significant increase in home sales prices since 2018, with
prices increasing by an annual average rate over 9.1 percent. The most significant increase
occurred between 2020 and 2021, with increases of nearly 30 percent in Bozeman and 56.0
percent in Gallatin County.
Home prices in Bozeman increased rapidly between 2018 and 2022; however, growth has
moderated since 2022 as high interest rates quelled demand for new homes. Home prices rose
in Manhattan and the rest of Gallatin County between 2024 and 2025. A growing population
in the areas surrounding Bozeman, as well as an increase in the number and size of second
home construction, contributed to the rise in home prices.
The rise in home prices poses challenges for housing affordability, workforce attraction and
retention, and quality of life. For investors and home builders, it is a signal of strong demand
and investment opportunities in the community. The City is exploring ways to responsibly
expand housing supply while preserving community health and wellbeing and reducing sprawl.
The City has incentives for affordable and workforce housing up to 120% of AMI including:
•Funding for gap closure
o Community Impact Fund
o Low Income Housing Tax Credits (both federal and state);
o Land donation
•Density bonus program;
o City of Bozeman Affordable Housing Ordinance
•Tax increment financing through its comprehensive urban renewal program
Table 17. Home Price Trends, 2018-May 2025
July 2018-July 2025
Description 2018 2019 2020 2021 2022 2023 2024 2025 Total Ann. #Ann. %
Median Sales Price
Bozeman $427,500 $460,000 $540,000 $700,000 $799,000 $770,000 $779,000 $796,500 $369,000 $52,714 9.3%
Belgrade $320,000 $340,950 $375,000 $535,000 $577,720 $605,700 $604,000 $589,000 $269,000 $38,429 9.1%
Greater Manhattan $389,000 $416,000 $564,750 $640,000 $737,500 $713,100 $750,500 $803,000 $414,000 $59,143 10.9%
Gallatin County $416,000 $436,000 $439,000 $685,000 $790,000 $792,000 $810,000 $867,000 $451,000 $64,429 11.1%
YoY % Change
Bozeman -7.6%17.4%29.6%14.1%-3.6%1.2%2.2%
Belgrade -6.5%10.0%42.7%8.0%4.8%-0.3%-2.5%
Greater Manhattan -6.9%35.8%13.3%15.2%-3.3%5.2%7.0%
Gallatin County -4.8%0.7%56.0%15.3%0.3%2.3%7.0%
Source: Gallatin Association of Realtors; Economic & Planning Systems
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Multihousehold Market
Through the third quarter of 2025, Bozeman had 8,944 multihousehold units in its inventory,
73.5 percent of the Gallatin County total of 12,167 (Table 18). Since 2020, Bozeman has added
4,632 units, an average of 926 per year. Over the same period, Gallatin County as a whole
added 6,758 units, an average of 1,352 per year. Bozeman had 68.5 of the multihousehold
market share.
As of 2025 Q3, the multihousehold vacancy rate was 18.5 percent in Gallatin County and
18.7 percent in Bozeman. Both Gallatin County and Bozeman have seen approximately a 13.0
percentage point increase in vacancies since 2020. In Bozeman, the vacancy rate rose by 6.1
percent between 2024 and 2025 Q3. Multihousehold vacancy rates fluctuate with the supply
of new units. The vacancy rate has increased with the large addition of new supply in 2024 and
2025 when almost 1,900 new units were built (Figure 13). A more detailed analysis of vacancy
rates can be found later in this chapter.
Table 18. Multihousehold Summary, 2020-2025 Q3
2025 Q3
2020-2025 Q3
Description 2020 2021 2022 2023 2024 Change Ann. #Ann. %
Inventory (Units)
Bozeman 4,312 4,495 5,010 5,486 8,104 8,944 4,632 926 15.7%
Gallatin County 5,409 5,593 6,276 7,141 11,328 12,167 6,758 1,352 17.6%
Bozeman % of G.C.79.7%80.4%79.8%76.8%71.5%73.5%68.5%
Bozeman YoY % Change 18.7%4.2%11.5%9.5%47.7%10.4%179.0%
Per Unit Asking Rent
Bozeman $1,993 $2,093 $2,208 $2,244 $2,261 $2,169 176 35 1.7%
Gallatin County $2,020 $2,113 $2,222 $2,259 $2,276 $2,179 159 32 1.5%
Deliveries (Units)
Bozeman 678 183 515 476 1,044 840 10,387 2,077 4.4%
Gallatin County 678 184 683 865 1,233 840 5,605 1,121 4.4%
Vacancy
Bozeman 5.8%4.0%4.9%7.1%12.6%18.7%
Gallatin County 4.9%3.6%4.9%9.3%13.7%18.5%
Bozeman YoY % Difference 2.1%-1.8%0.9%2.2%5.5%6.1%13.0%
Source: CoStar; Economic & Planning Systems
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Between 2010 and 2025 Q3, 5,605 multihousehold units were built in Gallatin County (Figure
13). Of that, Bozeman accounted for 85.3 percent of the total, equivalent to 4,782 units.
Figure 13. Multihousehold Deliveries, 2010-2025 Q3
Notable Projects
Uplands – Uplands is a 343 unit market rate apartment and residential community that
opened in 2025. The Uplands complex includes a wide range of amenities such as a fitness
center, pool, clubhouse, remote work space, EV charging stations, and onsite greenspace. Rent
for a one-bedroom unit is $1,649 per month, $2,713 for a two-bedroom unit, and $3,549 for
a three-bedroom unit. The building is located the intersection of Tschache Lane and N 27th
Avenue, three miles from downtown Bozeman.
The Freestone – Located at N. 5th Avenue and W. Main Street, The Freestone is a 121-unit
luxury multihousehold building with 900 square feet of retail space. The site features studio,
one, and two-bedroom apartments ranging from 600 to 1,800 square feet. The Freestone is
blocks from central Bozeman and is a three-minute drive from MSU. Rent for a one bedroom
apartment ranges from $1,775 to $2,700. A two bedroom apartment costs $2,900 per month
to rent.
The Beaumont – Located on Patrick Street and 14th Avenue, The Beaumont is an income
and student status restricted residence for households at or below 60% AMI. The building
consists of 440 units, 155 (35 percent) of which are income restricted. Rent for a one-bedroom
apartment is $1,271 per month, $1,507 per month for a two-bedroom apartment, and $1,735
per month rent for a three-bedroom apartment. The building includes amenities such as a
fitness center, coworking space, and in unit washer-dryer. The building is two miles from
downtown Bozeman and Montana State University.
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Westlake Heights – Westlake Heights is a 216-unit affordable multihousehold development
that opened in 2025. Located at N. 3rd Avenue and W. Tamarack Street, the building is a half
mile north of downtown Bozeman and 1.75 miles north of MSU. The development is income
restricted to renters earning 50% to 70% of AMI and has units for 1–4-bedroom households,
as well as amenities such as onsite maintenance, a dog park, a clubhouse, and a fitness center.
Rent is approximately $1,300 for a one bedroom apartment, $1,500 for a two bedroom
apartment, and $2,000 to $2,200 for a three bedroom apartment.
Table 19. Recent Multihousehold Construction, 2024-2025
Description City Units
Year Built/
Expected Avg. Rent/ Mo.
Market Rate
Arbor Houses at Blackwood Groves Bozeman 2025 20 $3,166
The Freestone Bozeman 2025 121 $2,175
Buffalo Run Bozeman 2025 237 $2,842
Uplands Bozeman 2025 343 $2,794
University Crossing Bozeman 2025 59 $1,612
The Ives Bozeman 2024 99 $2,269
Yellowstone Landing Belgrade 2024 168 $2,384
The Kestrel Bozeman 2024 92 $2,292
The Edison at Bozeman Gateway Bozeman 2024 231 $1,958
Avion Apartments Bozeman 2024 216 $1,968
Yellowtail Residences Big Sky 2024 35 --
The Henry Bozeman 2024 44 --
Sum/ Average 1,665 $2,375
Affordable/Rent Subsidized
Westlake Heights Bozeman 2025 216 $1,895
The Beaumont Bozeman 2025 440 --
Sum/ Average 656 $1,895
Sum/ Average 2,321 $2,311
Source: CoStar; City of Bozeman; Economic & Planning Systems
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LIHTC Market
The Low-Income Housing Tax Credit (LIHTC) program is a federal program that awards tax
credits to housing developers in exchange for the reservation of a percentage of units as
affordable housing. As of 2025, Bozeman has a LIHTC inventory consisting of 1,161 units
across 19 buildings (Table 20). These units have an average occupancy rate of 97 percent (for
buildings with a surveyed occupancy rate and excluding buildings built in 2025), 15.3 percent
higher than the Bozeman average of 81.7 percent in 2025. The higher occupancy rate for
LIHTC development and 3.9 month average wait list time indicates that there is additional
demand for affordable housing not being met by the current supply. According to Bozeman’s
community housing dashboard, there are 1,406 LIHTC units either under construction or in
review. The 7th & Aspen affordable housing development is the only LIHTC building currently
under construction and will deliver 96 affordable units in 2026 when fully open.
Table 20. Bozeman LIHTC Summary
Project Name Credit Type
Low Income Units AMI Target Year in Service Vacancy Wait List
Wait List Length (Months)
Westlake Heights --216 60.0%2025 71%No waitlist N/A
Comstock Apartments 4%24 60.0%1996 ----N/A
Comstock II Apartments 4%34 60.0%1999 ----N/A
Comstock III Apartments 4%28 60.0%2001 ----N/A
Castlebar Apts II 4%29 60.0%2003 ----N/A
Bridger Apartments - Bozeman 9%44 --2003 0%3 6
Bridger Apartments Phase II Both 46 --2005 0%No waitlist N/A
Pond Row 4%20 --1999 0%No waitlist N/A
Aspen Meadows Apartments 4%43 --2000 ----N/A
Baxter Apts Both 48 60.0%2006 ----N/A
Haggerty Lane 9%10 60.0%2013 ----N/A
Stoneridge Apartments 9%48 --2016 ----N/A
Larkspur Commons Both 136 50%-60%2016 3%--1.5
Castlebar Both 72 60.0%2021 ----N/A
Arrowleaf Park Both 136 60.0%2022 2%A few 1
Boulevard Apartments Both 41 --2022 --N/A
Perennial Park Both 96 60.0%2021 4%A few 7
Timber Ridge Apartments Both 30 60.0%2023 ----N/A
Bridger Peaks Apartments 9%60 60.0%2022 7%No waitlist N/A
Average [1]--61 60%2011 2.3%--3.9
Sum --1,161 ----------
[1] Average occupancy excludes Apartments built in 2025
Source: Department of Housing and Urban Development; Economic & Planning Systems
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Vacancy Analysis
Market Rate and Affordable Vacancy Analysis
As of 2025 Q3, the vacancy rate for affordable multihousehold units was 3.6 percent
compared to 19.9 percent for market rate units (Figure 14). Affordable housing has a lower
vacancy rate due to the low supply of affordable units and high demand from low-income
households. Market rate apartments have overall higher vacancy rates because of the large
amount of new supply built in 2024 and 2025, which has not fully leased up yet. The vacancy
rate for market rate multihousehold units has risen significantly since 2022. This coincides
with a period of substantial growth in supply. Bozeman saw 840 new market rate units enter
the market this year, and 1,943 deliveries since 2022.
Figure 14. Market Rate and Affordable Multihousehold Vacancy Rate and Deliveries, Bozeman
New Development Trends and Vacancy Analysis
Between 2024 and 2025, 1,943 multihousehold units were built in Bozeman, 26.7 percent
of the total inventory (Table 21). Average asking rent per month is $291 higher in new
development compared to the pre-2024 multihousehold stock. Notably, units built since 2024
have a vacancy rate of 44.2 percent, 35.0 percent higher than existing development.
Table 21. New vs Existing Multihousehold Trends, Bozeman
Property Type Units
Avg. Asking
Rent/ Mo.
Vacancy
Rate
New Development (2024-2025)1,943 $2,328 44.2%
Existing Development (Pre-2024)7,279 $2,037 9.2%
Difference --$291 35.0%
Source: CoStar; Economic & Planning Systems
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Figure 15. Vacancy Rate in New vs Existing Multihousehold Development, Bozeman
Historically, vacancy rates increase when new supply is built. When new units are delivered,
the vacancy rate increases and then falls as new supply gets leased. For example, in 2015, 333
new units were delivered in Bozeman, more than the previous six years combined (Figure 16).
As the supply of available units increased the vacancy rate increased, reaching 7.9 percent, a
six-year high. Over the next three years, the new units were absorbed and the vacancy rate
lowered. This pattern of increasing vacancy rates as a result of new supply was repeated since
2013. Since 2024, the volume of unit delivery has risen dramatically, increasing the vacancy
rate to a 16-year high of 18.7 percent. It is expected that the new supply will absorb over the
next few years as Bozeman continues to grow; however, vacancies will remain high and the
construction of new multihousehold development may slow.
Figure 16. Bozeman Multihousehold Deliveries and Vacancy Rate, 2010-2025 Q3
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The recent increase in the supply of multihousehold units in Bozeman has increased
apartment vacancies, particularly for new development. In order to fill those vacancies,
landlords are offering rent concessions to attract tenants. Rent concessions peaked in 2023
with a $77 difference between effective and asking rent. Although that difference narrowed
in 2024 and 2025, it has remained well above pre-2023 levels (Figure 17). Anecdotally, four
surveyed multihousehold developments offer two months free rent in addition to other
concessions such as raffles.
Figure 17. Bozeman Effective vs Asking Rent per unit, 2019-2025
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Affordability
The rise in housing prices and interest rates has made homeownership difficult for many
people in Bozeman. In 2016, a household earning 110 percent of the HUD Area Median
Income (AMI) could afford the median priced home of $359,500. Through July 2025, a
household would need to earn 182% of AMI to afford the current median home price of
$759,600. The median home price decreased between 2024 and July 2025, falling from
$799,000 to $759,600 (-4.93 percent). As a result, the required annual income to afford a
median priced home fell, from $229,219 to $220,164, or 210% of AMI to 182% of AMI.
Table 22. Required Annual Income to Afford Median Home Price, 2024-July 2025
Bozeman Factor 2024 July 2025
Median Home Price $799,000 $759,600
Mortgaged Amount (less: downpayment)5.0% down pmt $759,050 $721,620
Mortgage Interest Rate 6.7% int.6.8% int.
Loan Term 30-years 30-years
Monthly Costs
Mortgage Payment (Monthly)$4,898 $4,704
Less: Insurance $1,500 / Year $125 $125
Less: Property Taxes 1.0%$666 $633
Less: Miscellaneous $500 / Year $42 $42
Total Monthly Housing Costs $5,730 $5,504
Required Annual Income 30%$229,219 $220,164
100% AMI for Family of 4 $109,000 $120,700
AMI for Family of 4 210%182%
Source: Gallatin Association of Realtors, HUD, US Census; Economic & Planning Systems
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In 2024, the income level to afford the median priced home was 210% of AMI (Figure 18).
Through July 2025, 182% of AMI is required to afford the median priced home. Households
earning 180% of AMI ($217,260) would still need to earn another $2,904 per year to afford
the median priced home (Figure 19). According to the Gallatin Association or Realtors, median
home prices fell by 5.0 percent between 2024 and July 2025.
Figure 18. Income Gap to Afford Median Priced Home, Bozeman, 2024
Figure 19. Income Gap to Afford Median Priced Home, Bozeman, 2025
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A household is defined as “cost burdened” when it is paying 30 percent or more of income
towards rent or mortgage payments. In 2023, 47.2 percent of housing units in Bozeman were
cost burdened compared to 37.6 percent in Gallatin County (Table 23). Over half of renter
housing units and approximately one third of owner housing units were cost burdened in
both the city and county in 2023. The percentage of cost burdened housing units increased
from 2019 to 2023. In the city, 6.9 percent more housing units were cost burdened in 2023
compared to 2019. In the county, 4.8 percent more housing units were cost burdened over the
same period.
Table 23. Cost Burdened Housing Units, 2019-2023
Change
Description 2019 2023 2019-2032
Bozeman
Cost Burdened Owner-Occupied Housing Units 23.7%32.7%9.1%
Cost Burdened Renter-Occupied Housing Units 52.8%58.2%5.3%
Cost Burdened Housing Units 40.2%47.2%6.9%
Gallatin County
Cost Burdened Owner-Occupied Housing Units 23.4%28.2%4.7%
Cost Burdened Renter-Occupied Housing Units 47.4%52.4%5.0%
Cost Burdened Housing Units 32.7%37.6%4.8%
Source: ACS 5-Year Estimates; Economic & Planning Systems
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6. Population Forecasts and Housing Demand
EPS prepared 20-year population and housing forecasts for Bozeman and Gallatin County in
a separate report. Three scenarios were developed to show the range of potential growth
over the next 20 years based on different market influences and policy factors:
•Baseline Scenario – The baseline scenario simply projects a continuation of historic trends
in job and population growth.
•Amenity-Driven Scenario – This scenario shows how the appeal of this region to part-time
residents and vacation homeowners (second homes) affects growth patterns and housing
demand. The demand for part-time/vacation homes puts pressure on the housing market by
constraining supply and increasing home prices.
•Constrained City Scenario – This scenario shows how changes in land use policy or
infrastructure capacity limits reduce the amount of growth the City of Bozeman can
accommodate.
Each forecast is based on the same jobs forecast, but allocates population and housing growth
differently for each scenario. New jobs create labor force demand (population) which then
creates housing demand. The factors that vary in the scenarios are commuting patterns and
the number of part-time/second homes which result in different allocations of population and
housing demand by area.
Forecast Summary
The jobs and population forecasts are summarized in Figure 20 and Figure 21. By 2045,
Gallatin County is forecast to gain 44,500 jobs at an annual growth rate of 2.0 percent per year
to 135,000 jobs in 2045. The City of Bozeman is forecast to grow to 79,300 jobs, an addition
of 26,100 jobs, also at an annual rate of 2.0 percent. The city capture of 59 percent of the job
growth is based on historic trends in job locations.
The 2045 population of the county and the City of Bozeman will vary depending on numerous
factors that affect where housing and population growth occur. The total county population
could range from 181,500 to 194,000 depending on how many people live and work in Gallatin
County and how much commuting increases from outside the county from areas with lower
cost housing. The Bozeman population could range from 78,300 to 87,400 depending on how
much growth the city accommodates and how factors like housing costs and increases in part-
time resident homes shift the full-time population to other areas of the county and outside
Gallatin County, thereby increasing in-commuting.
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Figure 20. Jobs Forecast, Bozeman and Gallatin County, 2045
Figure 21. Population Forecast, Bozeman and Gallatin County, 2045
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Scenario Comparisons
The total housing demand is calculated from the labor force needs in the jobs forecast and
summarized in Table 24. Key metrics with policy implications are compared for each scenario,
below.
Baseline Forecast
Gallatin County, in total, would need to add 29,300 new homes to meet the labor force
demand and maintain the current commuting patterns at about 6 percent of workers who
commute from other counties (Table 24). Historically, Bozeman has captured about 48 percent
of housing construction countywide and maintaining this trend result in demand for 14,100
new homes in Bozeman by 2045.
Table 24. Housing Unit Demand Forecast By Area
Share
Housing Units 2025 2045 Change of Change
Baseline Forecast
Bozeman 28,600 42,700 14,100 41.1%
Gallatin County Total 59,600 88,900 29,300 100.0%
Amenity-Driven Forecast
Bozeman 28,600 42,000 13,400 48.9%
Gallatin County Total 59,600 87,000 27,400 100.0%
Constrained City Forecast
Bozeman 28,600 38,300 9,700 41.1%
Gallatin County Total 59,600 83,200 23,600 100.0%
Source: Economic & Planning Systems
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Amenity-Driven Forecast
This forecast shows the influence of high housing costs and an increase in part-time/second
homes. In this scenario, the percentage of homes occupied by part-time residents or vacation
homeowners about doubles in Bozeman (from about 6 percent to 11 percent), as shown in
Table 25. This results in fewer homes being available for the local workforce, a continued
increase in housing prices, and reductions in the number of people who live and work in
Gallatin County (an increase in commuting). The resulting county population in this scenario is
181,500 (vs. 194,000 baseline), and Bozeman’s population is 81,800 (vs. 87,400 baseline).
In-commuting from lower cost areas doubles from 6 percent to 12 percent countywide due to
the increases in home prices and decrease in homes available for the workforce (Table 26).
Table 25. Part-Time/Second Homes Forecast
Total Housing Units Part-Time/ 2nd Homes % Part-Time/ 2nd Homes
Housing Units 2025 2045 2025 2045 2025 2045
Baseline Forecast
Bozeman 28,600 42,700 1,800 2,800 6.3%6.6%
Gallatin County 59,600 88,900 5,400 8,100 9.1%9.1%
Amenity-Driven Forecast
Bozeman 28,600 42,000 1,800 4,600 6.3%11.0%
Gallatin County 59,600 87,000 5,400 11,400 9.1%13.1%
Constrained City Forecast
Bozeman 28,600 38,300 1,800 2,500 6.3%6.5%
Gallatin County 59,600 83,200 5,400 7,600 9.1%9.1%
Source: Economic & Planning Systems
Table 26. Worker Commuting Pattern Forecast
Gallatin County Workers
and Commuting
Total Workers In-Commuters % In-Commuters
2025 2045 2025 2045 2025 2045
Baseline Forecast 83,000 123,800 5,000 7,400 6.0%6.0%
Amenity-Driven Forecast 83,000 123,800 5,000 14,900 6.0%12.0%
Constrained City Forecast 83,000 123,800 5,000 14,900 6.0%12.0%
Source: Economic & Planning Systems
Constrained City Forecast
The Constrained City forecast has outcomes that are similar to the Amenity-Driven scenario.
In this scenario, it is assumed that growth policy in the City of Bozeman reduces the amount
of housing growth that ocurrs in the city. The 2045 population of Gallatin County is forecast
at 181,500, which is the same as in the Amenity-Driven scenario. What changes is the
distribution of population within the county. With Bozeman’s population forecast to be 78,300
compared to 87,400 in the Baseline scenario, there are 9,100 people and 4,400 housing units
built elsewhere in Gallatin County, just not in the City of Bozeman. This scenario shows how
one jurisdiction’s land use decisions ripple across a regional market.
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Housing Unit Types
Permit data from the City of Bozeman was used to estimate housing unit demand by type for
the Baseline scenario. Bozeman is forecast to have demand for 6,400 single household units
between 2025 and 2045, corresponding to 45.2 percent of total units (Table 27). Overall,
single household, duplex, and townhome unit types are forecast to account for 73.2 percent
of new unit demand. There is forecast demand for an additional 2,000 multihousehold units,
and 1,200 triplex and fourplex units, or 22.8 percent of the total. Continued demand for single
household, duplex, and townhome units is likely to continue to put pressure on the city’s
housing market as population and job growth increases housing unit demand.
Table 27. Housing Unit Demand by Type, City of Bozeman
New Unit Demand
2025-2045
Unit Type New Units
Single Household 45.2%6,400
Duplex 10.9%1,600
Triplex 3.8%500
Fourplex 5.0%700
Detached ADU 4.1%500
Multihousehold / Condo (5+ units)13.9%2,000
Townhome 17.0%2,400
Total 100.0%14,100
Source: City of Bozeman; Economic & Planning Systems
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Memorandum
REPORT TO:Community Development Board
FROM:Chris Saunders, Community Development Manager
Erin George, Community Development Director
SUBJECT:Upcoming Items for the February 2, 2026, Community Development Board
Meeting
MEETING DATE:January 26, 2026
AGENDA ITEM TYPE:Citizen Advisory Board/Commission
RECOMMENDATION:Information only, no action required.
STRATEGIC PLAN:4.1 Informed Conversation on Growth: Continue developing an in-depth
understanding of how Bozeman is growing and changing and proactively
address change in a balanced and coordinated manner.
BACKGROUND:The following items are presently scheduled for review at the February 2,
2026, Community Development Board meeting:
1. Annual Ethics Training.
UNRESOLVED ISSUES:None.
ALTERNATIVES:None.
FISCAL EFFECTS:No budgeted funds are expended with this item.
Report compiled on: January 20, 2026
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