Report: Flathead County Has Highest Number of Short-Term Rentals in Montana
The report from the University of Montana's Institute for Tourism and Recreation Research focuses on data showing how short-term rentals in key areas have impacted the housing market
By Mariah Thomas
Flathead County had the highest number of short-term rentals in the state and the second-highest number of average bookings per month, according to a report on short-term rentals released this month by the University of Montana’s Institute for Tourism and Recreation Research (ITRR).
The report, which focused on short-term rental activity around the state between 2019-2023, built on a 2021 research effort into the state of short-term rentals. That initial report from 2021 collected anecdotal evidence about the impact of short-term rentals on communities where they proliferate, and their impact on travelers.
Elena Bigart, one of the reports’ authors, said following the initial report, the ITRR received several questions about how short-term rentals impact housing markets. The new report includes figures that paint a picture of the true impact of short-term rentals on housing stock.
Across Montana, short-term rental figures grew by 55% between 2019-2023, rising from 8,245 to 12,808. Many factors loomed large when it came to the housing market in that time frame. Bigart pointed to the COVID pandemic, migration into the state and population growth as three major factors that touched the short-term rental landscape, and the housing market more generally.
But when it comes to short-term rentals, much of their activity was focused in tourism areas. Specifically, Flathead and Gallatin counties saw outsized short-term rental impacts when compared to the rest of the state. The counties sit outside the tourist hubs of Glacier National Park and Yellowstone National Park, respectively.
Flathead County boasted an average of 3,078 short-term rentals per month, the highest figure in the state, followed closely by Gallatin County, which had 3,067. The next closest county after those two — rural Park County — had 902 short-term rentals per month. But relative to total housing supply, Park County’s short-term rental activity “takes up a much larger slice” than in the more urban Flathead and Gallatin counties.
In Flathead County, the number of short-term rentals translated to an average of 12,233 bookings per month. In the summers, that figure more than quadrupled, as the county saw upward of 50,000 bookings per month during peak visitation.
The report looked at the impact of short-term rentals on total housing stock in 2023 as well. Flathead County’s average monthly short-term rental count in 2023 was 3,199, which accounted for 6.08% of the county’s housing stock — well above the state average of short-term rentals accounting for 2.4% of housing stock.
Researchers also narrowed their parameters to short-term rentals that “resemble traditional housing (entire homes or apartments, rather than unique spaces like barns or tents).” Those type of short-term rentals accounted for 3.89% of Flathead County’s total housing stock in 2023. Again, that figure is more than double the statewide average of 1.5%.
Bigart said in the Flathead, interviews researchers conducted with stakeholders revealed concerns about the growth in short-term rentals and how to regulate them.
“The key, big takeaway about Flathead is it’s definitely a county with challenges, and local communities need to adjust to what’s right for them,” Bigart said.
Concerns about short-term rentals have led to local governments implementing regulatory measures or bringing in specialists to track the impact of short-term housing. But Bigart said it’s important to note that finding balance between short-term rentals and long-term housing needs are specific to each community. She also added many factors beyond short-term rentals contribute to housing challenges.