After years of unprecedented growth, Flathead Valley’s real estate market is entering a new phase—one that prioritizes balance over rapid expansion. While construction boomed across Kalispell, Whitefish, and Columbia Falls in recent years, the pace has slowed as the region adapts to evolving economic conditions and infrastructure needs.
Declining Construction, But Not a Market Crash
Just a few years ago, new housing developments seemed to pop up on every available plot. In Kalispell alone, developers planned nearly 900 housing units in 2021. By 2024, that number has dropped to around 250. Whitefish has seen a similar decline in single-family home permits, with just 24 issued this year compared to 129 in 2021.
However, this slowdown doesn’t signal a crisis. Instead, it represents a market correction as communities absorb the surge of multi-family housing built in recent years. Projects like Alpine 93/40 and the Whitefish Corridor Community are still moving forward, ensuring a continued supply of homes—particularly deed-restricted units aimed at improving affordability.
Housing Prices Remain High Despite Slowdown
Even with fewer new developments, home prices remain steep across Flathead Valley:
- Kalispell: $522,750 median home price
- Whitefish: $972,000 median home price
- Columbia Falls: $405,000 median home price
While Columbia Falls has seen a slight decrease, affordability continues to be a major challenge. Interest rates hovering around 6.5% have added further strain, making it difficult for many buyers to enter the market. According to the Northwest Montana Association of REALTORS® (NMAR), while bidding wars have cooled and properties are spending more time on the market, high prices keep homeownership out of reach for many.
A Shift Toward Infrastructure Investments
With fewer housing developments breaking ground, Flathead County is redirecting resources toward infrastructure improvements that support long-term growth. Notable projects include:
- Flathead County Detention Center Expansion – A proposed facility to address increasing public safety demands, set for a fall 2025 vote.
- $30 Million Somers Wastewater Treatment Project – This state- and federally-funded initiative is awaiting approval from the Montana DEQ. Once completed, it will modernize water management and support future development in the region.
Rather than focusing solely on new housing, local leaders recognize that infrastructure must keep pace with population growth to ensure sustainable development.
What’s Next for Flathead Valley?
The days of relentless construction may be slowing, but the region remains on a growth trajectory—just at a more measured pace. High home prices and rising interest rates present challenges, but the shift toward balanced, strategic development could create a more sustainable housing market in the long run.
Flathead Valley’s evolution is far from over. As local officials and developers adjust to new economic realities, the focus will likely remain on smart growth rather than unchecked expansion. If this balance is maintained, the region can continue thriving—just with a stronger foundation for the future.
