Dustin Stewart - March 15, 2007
Montana Building Industry Association
Housing Market
Housing In Montana:
The Housing Market and home affordability affect nearly everyone in Montana. From creating jobs in construction, banking, insurance, to selling windows everyone has a stake in a strong housing market, fair prices, and quality construction.
There is no better way to achieve the American dream than owning your own home, living in a safe neighborhood with quiet streets, active parks, and friendly neighbors.
Additionally, the construction industry is the driving force behind Montana’s billion dollar surplus.
In 2006 there were over 6,000 new single family homes built in Montana. The total value of all of those homes built last year exceeded $1.7 Billion.
Additionally, these homes provided $15 million in new tax base to local governments. Amazingly, the housing industry in Montana is almost exclusively made up of small business with fewer than 20 employees. Yes, the driving force of Montana’s economy is small business.
And although the national housing market is faltering, the recession has barely even sent a ripple through Montana, where housing demands remain as strong as ever. In fact, over a 10 year average, Montana’s housing market could hardly be more stable.
But because of the high demand for housing in many areas of our state, a relatively new issue, affordability of housing is becoming a significant concern.
The Montana Building Industry Association represents the residential contractors and homebuilders at the Montana Legislature. Affordability of housing, private property rights and access to water have been major topics this legislative session.
Among the contentious issues has been several attempt to eliminate the ability of new homes to drill water wells without a very costly permit, establishing streamside setback for home construction, and changing the way local governments can establish impact fees.
Rep. Mike Jopek, a Democrat from Whitefish and Rep Kevin Furey, Democrat from Missoula would like to eliminate the current ability of new homes to drill water wells, instead making new homeowners apply for a water permit - a process that can take well over three years and cost $12,000.
This elimination would most severally affect new homeowners in rural Montana, where over 90% of homes currently must use well water. Fortunately, the House Natural Resources has, so far, refused to make such a drastic change.
Preserving Montana homeowners’ right to drill water wells is vital to housing affordability.
Private property rights have also come under attack this legislative session through a bill Sponsored by Democrat Senator Bob Hawks of Bozeman that would force counties to prohibit building homes within 250 feet of a river. SB345, also known as a streamside setback, takes a way county’s current authority to decide if they need a waterway setback, and forces a one-size-fits-all policy on every river in Montana, from the Clark Fork to the Milk river.
Senator Hawks’ bill would make it illegal to build a home on over 2 million acres in Montana. A massive taking of private property.
Montana is a beautiful place and naturally people want to live here, and as always, with growth comes growing pains. But the key to sound public policy, sensible regulations, and vibrant neighborhoods is thoughtful debate, common sense, and long term planning.
Prohibiting development or denying new homes water will not serve anyone well. Additionally, drastic measures such as these will artificially inflate the price of housing, making the American Dream harder to achieve for more Montanans.
|
|
