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Current Events: Airbnb’s and code reform discussions underway in Missoula

The Missoula City Council is looking at code reform when it comes to Airbnb’s and other businesses in residential areas
Old Sawmill District
Posted at 11:17 AM, Feb 09, 2024
and last updated 2024-02-09 13:18:18-05

MISSOULA — This edition of Current Events with Missoula Current editor Martin Kidston takes an in-depth look at a recent discussion about vacation rental homes in Missoula as well as code reform efforts.

“They've been discussing vacation rentals here for the last couple weeks. It's nothing new, this [has been] going on for years — the vacation rental issue. Some people feel it is taking a bigger portion of our housing stock. The city did a study. They found out that wasn't true,” Kidston explained. “As a business in residential areas…[it’s a] complicated topic. They made no progress in it. This week [the Missoula City Council] killed the bill.

The city of Bozeman banned Airbnb's last year, but there are differences in the vacation rental markets between the two cities.

“Well, Missoula’s stock of Airbnb’s [is] nothing close to what Bozeman's is. About 587 Airbnb’s represents a smaller person of the per capita class in Missoula, where Bozeman’s is quite a bit higher. Whitefish is way higher. So, it's all about supplying demand right now,” Kidston said. “[It’s] just not taking up that much of the market. It's about it's about 1.5% of the housing market in Missoula. So right now, it's not an issue.”

The Missoula City Council is looking at code reform when it comes to Airbnb’s and other businesses in residential areas.

“Right now, the issue is Airbnb’s are a business and they're able to operate and residential areas…so instead of banning Airbnb’s, what the City Council is going to do is [look at] code reform,” Kidston said. “So, they want to build [in] a zone more businesses into residential areas — like coffee shops, corner markets. So, instead of limiting a business type, they want to bring in other types of businesses. Code reform is going to take a while to play out, but that's the goal with the idea.”

“These Airbnb’s would only exist in these pockets like around the other businesses -- pretty much anywhere in the city; commercial zones, residential zones. Most businesses are restricted from residential zones. So, code, reform would change that type of zoning and allow commercial businesses to operate,” Kidston explained.

City officials are continuing to promote mixed-use developments.

“[Mixed-use projects are] kind of the new hip thing. They want to see mixed-use…and you're going to see that on Scott [Street],” Kidston noted. “You're starting to see that out, you know, in the Mullan area…that’s the direction this city wants to go. It's a zoning. It's a kind of bland neighborhood, so they're walkable. You can walk to the market. You don't need to drive. You can walk and get groceries. You need to hop in the car. Go across town. That's the goal.”

It will most likely take quite a bit of time to develop code reform in Missoula.

“It could be a long process. It kind of comes out and parcels. You know, it's going to be kind of a…slow creep of proposals and policies,” Kidston said. “Keep your ear to the ground and participate in the process. If you want to be in the know, it's a big deal. It's a big change in zoning and it's going to kind of reshape [how Missoula] looks and feels down the road.”