Following years of the pandemic-era population boom across the state, the U.S. Census Bureau reported last month that Montana’s annual population growth has slowed to its lowest level of 0.06% in 12 years. And while Flathead County surpassed the statewide average with about 1%, Kalispell’s 3% growth last year has been an economic driver for the municipality of more than 30,000 people.
Clarno said that economic engine is being fueled by residential and commercial investment in Kalispell where total construction values in 2025 rose to nearly $250 million, smashing the previous record of $170 million in 2021.
“Capital is here,” Clarno said.
With roughly 800 multifamily units poised to come online this year, numerous large-scale commercial projects in north Kalispell, including the relocations of Costco and the Toyota dealership, have contributed dramatically to construction values.
As the big box stores stack up north of West Reserve Drive, Clarno says it’s becoming more important that we don’t forget about the small businesses in downtown Kalispell.
“You can see the numbers and square footage and the footprints being made in the north — that’s also brought up a lot of discussion about how we need to work together to focus more on our downtown and its redevelopment and revitalization,” Clarno said.
Kalispell’s establishments attracted significant visitor spending in recent years, with Visa credit card data alone revealing more than $225 million last year, including food, beverage, retail, accommodations, gas and transportation as the top categories. There was however a 35% drop in Canadian credit card spending as international tension and a weak currency continues to contribute to a decline in border crossings.
But the local economy is expected to take a hit this summer during peak tourism season when Glacier Park International Airport will limit runway operations to complete a runway resurfacing project. Starting in early July, a rolling schedule will close the airport from Monday evening to Friday morning over four consecutive weeks.
While the crickets at the airport will come as a welcome respite from tourist traffic for many residents during a month that last year saw 77,864 boardings, business owners say it will contribute to significant economic losses. For example, many large-scale events that draw a high volume of out-of-state tourists like Under the Big Sky music festival occur in July while Glacier National Park saw more than 700,000 visitors during that month alone last year.
To understand what those losses might look like, the Kalispell Chamber of Commerce contracted with Blue Room Research to conduct an economic impact study, which revealed estimated losses of $29 million.
“Safety is paramount, but we as a group wanted to know what that might look like so we can begin working with our businesses and members and prepare to weather this very significant dip that we’re going to have in July next year,” Clarno said.
But hey, at least airport officials are shutting the runway down for a critical infrastructure project instead of party balloon interferences.
I’m Maggie Dresser, here to land today’s Daily Roundup.
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