Kalispell Housing Public Comment from Merna TerryCity of Kalispell
Attn: Mayor and Council Members
201 1st Avenue East
Kalispell, MT 59901
July 15, 2026
Dear Mayor and Council Members,
First, I want to thank you for taking an important step by appointing a committee to focus
on housing affordability and homelessness. That is a meaningful and necessary move, and I
appreciate your leadership in recognizing how serious this issue has become for our
community.
I would like to respectfully ask that you consider broadening the scope of that committee. In
addition to addressing affordability and homelessness, I believe there is a real opportunity
for the City of Kalispell to look at ways to reduce the cost of building homes—specifically
through improvements in processes and procedures that don’t necessarily require
additional funding but can still have a significant impact on overall housing costs. This, in
turn, should lead to lower prices for homes in Kalispell.
I recently retired after 32 years of building homes here in the City of Kalispell. Throughout
my career, my husband’s and my mission was simple: build homes for the people who live
and work in this community. Today, that has become increasingly difficult. Montana is now
ranked as the least affordable state for housing, and Flathead County is one of the least
affordable areas within the state. That reality is changing who can live here—and more
importantly, who cannot.
Over the past two years, I have been meeting regularly with other builders, developers,
engineers, and business owners who are all interested in finding practical ways to reduce
the cost of housing. Through those conversations, we have developed a number of ideas and
suggestions that we believe could help lower the cost of building homes—many of which
should not require additional funding from the City. Based on that work, I believe there is
potential to reduce the cost of homes in the City of Kalispell by as much as $50,000 through
changes that may have little financial impact on the City. We would very much appreciate
the opportunity to present those ideas and work collaboratively with you.
In my own discussions with City staff, I have been told that housing affordability is not part
of their role. I understand that perspective, but I believe this highlights an important
opportunity. From my perspective, one of the most impactful things the Council can do is set
a clear expectation for City staff: that housing cost should be considered in decision-making
whenever possible. If that becomes a priority, Kalispell has an opportunity to lead the
state—not just in recognizing the problem, but in becoming a champion for workforce
housing solutions.
We are already beginning to feel the broader effects of high housing costs. Local employers
are struggling to recruit and retain employees because people simply cannot afford to
relocate here. This is no longer just a housing issue—it is an economic issue that affects
businesses, schools, public safety, and the long-term vitality of our community.
While it is absolutely critical to address homelessness and low-income housing, I would
strongly encourage you to ensure that the conversation also includes housing for our
workforce—teachers, police officers, firefighters, healthcare workers, and City employees.
These are the people who keep our community running, and they need to be able to live
here as well.
I would also like to share a simple observation from my years in the building industry.
While supply and demand certainly influence home prices, in most cases the price of a home
is ultimately tied to what it costs to a home builder to build it and still remain in business. If
supply is high but builders cannot build profitably, they will stop building until prices rise
again. And when demand is high and supply is limited, prices will rise to whatever buyers
are willing to pay. The reality is that without addressing the cost side of construction, it is
very difficult to create lasting affordability.
Right now, based on the May 2026 NMAR Local Market Update, Flathead County is actually
in what would be considered a balanced market, with about a 5.4-month supply of
inventory. Yet affordability continues to be a major issue. That tells us the challenge is not
just supply—it’s cost.
In closing, I would encourage you to expand the conversation and take a leadership role in
addressing the cost of building homes. Small, thoughtful changes at the City level can have a
meaningful impact, and Kalispell has an opportunity to set an example for the rest of the
state. I would also welcome the chance, along with others in the building and business
community, to share ideas and be part of the solution.
Thank you for your time and for your continued service to our community.
Sincerely,
Merna Terry