“Breaking Ground: Montana’s Bold Land Use Reforms Spark a National Movement for Affordable Housing” 

The high cost of housing for many Americans has raised to such a staggering degree that it was a highlighted topic of discussion at the October 1^st debate between Senator JD Vance (R-Ohio) and Governor Tim Walz (D-Minn.), with one CBS moderator referring to it as the top driver of inflation. What wasn’t mentioned during the vice-presidential debate, however, is the success that state legislators and governors have had in reforming outdated land use laws that restrict property rights in a manner that suppresses the supply of housing.  

While Kamala Harris and Donald Trump are both claiming they have plans that will reduce housing costs, most of the needed reforms must occur at the state and local levels. Lawmakers in nearly half of the states, both red and blue, have recently introduced or enacted laws that protect property rights and remove regulatory barriers that impede the development of new housing. Governors and lawmakers in more states are looking to follow suit in 2025.  

According to the Reason Foundation, “The zoning law of an area influences its every aspect, including development type, traffic, and property values.” To improve the housing crisis, a package of zoning reforms passed in Montana last year, and they are now viewed by lawmakers in many other states as a model to emulate. Senate Bill 323, introduced by Sen. Jeremy Trebas (R) preempts local zoning that prevents the construction of duplexes in towns with fewer than 5,000 residents. Senate Bill 528, introduced by Sen. Greg Hertz (R) preempts all local zoning regulations in Montana that prevent property owners from building accessory dwelling units on their land.   

Governor Greg Gianforte (R) and state legislators who enacted those reforms recently celebrated a September decision by the Montana Supreme Court, which ruled in a 5-0 decision to reverse a preliminary injunction that a retired Gallatin County judge had issued, previously blocking those bills from taking effect.  

“I appreciate the Montana Supreme Court for rejecting this injunction, which held back two key reforms identified by our bipartisan Housing Task Force and passed into law by the Legislature,” In response to the September ruling that permitted the state’s zoning reforms to move forward, Gov. Gianforte said, “We will continue to find innovative ideas to increase housing supply so that affordable, attainable housing is within reach for every Montanan.” 

The California Housing Opportunity and More Efficiency (HOME) Act, enacted in January 2022, is an example of how blue states are also passing reforms to strengthen property rights in an effort increase the supply of housing.  California’s HOME Act lets people build duplexes or fourplexes on their property despite local zoning restrictions that mandate only single-family homes be built. 

Texas lawmakers introduced a Montana-style zoning reform bill last year, but it died in the state House. Expect that proposal to reemerge when the Texas Legislature reconvenes in 2025. In addition, we expect Montana-style zoning reforms that strengthen property rights to be introduced in more states in the coming year, particularly in other high growth states like North Carolina, South Carolina, Tennessee, Utah and Idaho.