2026 Gallatin Economic Update: Growth, Housing, Infrastructure & Development Across Gallatin Valley

The Gallatin Valley continues to experience significant growth, and local leaders are actively planning for the future. At the recent Economic Update Seminar, representatives from the City of Bozeman, City of Belgrade, Gallatin County, Montana State University, Northwestern Energy, Bozeman Yellowstone International Airport, Big Sky Resort, and Lone Mountain Land Company shared updates on major housing developments, infrastructure projects, transportation improvements, economic development initiatives, and community investments.

For homeowners, buyers, sellers, investors, and anyone interested in the future of Southwest Montana real estate, these updates provide valuable insight into what's ahead for Bozeman, Belgrade, Big Sky, and the greater Gallatin Valley.

City of Bozeman: Planning for Long-Term Growth

Bozeman Mayor Joey Morrison highlighted several initiatives focused on sustainability, housing, and community engagement.

Urban Forest Management Plan

The City is launching a new Urban Forest Management Plan focused on better integrating trees into the built environment. The effort is in its early stages and will prioritize forest health, maintenance, and long-term stewardship.

Affordable Housing: Fowler Project

The City continues work on the proposed Fowler Project, a five-acre affordable housing development located south of Oak Street and north of Farmall Street along the future Fowler Avenue extension. The project is targeting households earning approximately $90,000 to $120,000 annually and remains in the planning phase.

Water Resource Planning

Bozeman is developing a comprehensive 50-year Water Resource Plan that will evaluate water supply, inventory, and resiliency needs as the community continues to grow. The plan is expected to be completed by the end of this year.

Bozeman Creek Initiative

A multi-year effort is underway to celebrate and enhance Bozeman Creek, portions of which currently flow underground through downtown. The long-term vision is to make the creek a more visible and celebrated community asset.

Community Engagement

The City recently launched the Bozeman Beat Podcast as another way to connect residents with local government and community discussions.

City of Belgrade: Major Infrastructure Investments Ahead

Belgrade Mayor Mike Meis shared updates on several transportation and utility projects designed to support the city's continued growth.

Dry Creek Road Improvements

Plans include widening Dry Creek Road from North Jackrabbit Lane to Cruiser Lane, along with construction of a new roundabout. Planning continues this summer, with construction expected to begin in Fall 2026 and finish in Fall 2027.

Main Street and Amsterdam Road Projects

Several intersection improvements are being evaluated in partnership with MDT, including a future Main Street roundabout and upgrades to Amsterdam Road featuring a new stoplight, additional turn lanes, and a center lane. Construction is currently anticipated to begin in 2028.

Future Overpass Project

Belgrade continues planning for a future overpass project intended to improve traffic flow and connectivity, with completion projected around 2030.

Water Storage Expansion

The city has acquired the former Williams Pit property and plans to construct a three-million-gallon water storage facility along with a booster pump station. Two additional municipal wells are also scheduled for 2026.

Parks and Recreation

Construction at Mayfair Meadows Park will continue later this summer, including a bicycle pump track, parking improvements, and restrooms. Additional phases are planned for next year.

Northwestern Energy: Meeting Demand While Managing Risk

Northwestern Energy discussed several topics impacting Montana's future energy needs.

Data Centers and Energy Demand

As interest in data center development grows nationwide, Northwestern Energy explained how state law requires utilities to serve new customers, including large power users. The company has proposed a new large-load tariff intended to help protect residential and business customers from bearing the costs associated with major infrastructure upgrades.

Potential requirements for large users could include bringing their own renewable energy resources, battery storage, or partnering on new generation projects.

Bozeman Capacity Upgrades

A major upgrade to the Patterson Substation is planned to support growth in South Bozeman. The project represents an investment of more than $40 million over the next four to five years.

Wildfire Prevention Efforts

Northwestern Energy continues expanding wildfire mitigation programs through increased vegetation management, AI-powered smoke detection cameras, enhanced power line safety settings, and a dedicated situational awareness team that includes an in-house meteorologist.

Gallatin County: Housing and Infrastructure

Commissioner Zach Brown provided updates on county-led initiatives.

Hidden Creek Apartments

After more than five years of planning, the Hidden Creek Apartments project is moving forward on county-donated land adjacent to the Gallatin County Rest Home. Forty units will be reserved for households earning 30% of the area's median income or less.

Transfer Station Project

Gallatin County and the City of Bozeman are partnering on a new transfer station that will eventually replace the Story Mill landfill site. The project is currently undergoing development review.

Gallatin College: Workforce Development Expansion

Gallatin College continues expanding educational opportunities aligned with workforce needs.

Highlights include:

• A new Law Enforcement Academy featuring bootcamp-style training and direct college credit.

• Exploration of future finance and commercial driver's license (CDL) programs.

• Continued progress toward a new Gallatin College campus building, with design work expected to begin this fall.

Montana State University: Record Growth and Innovation

MSU continues to see growth in enrollment, research, and campus development.

Student Housing

This fall, approximately 5,166 students will live on campus, representing about 30% of the student population.

Major Campus Projects

Montana PBS Headquarters Expansion
The expansion will add more than 32,000 square feet of new space, including television studios, production facilities, classrooms, and a 192-seat event venue. Completion is expected in Fall 2027.

VIM Hotel
Currently under construction on campus, the VIM Hotel will serve visitors while providing hands-on hospitality and culinary training opportunities for students.

New Residence Hall
A new upper-class residence hall is planned to replace aging west-side housing and accommodate approximately 300 students.

Research and Innovation

MSU reported a record $288.7 million in research contracts and expenditures, representing 167% growth over the past 15 years.

Other highlights include:

• One of only a handful of universities worldwide operating two different types of quantum computers.

• Creation of a new interdisciplinary Artificial Intelligence Institute.

• Selection as the site of a new U.S. Patent and Trademark Office presence serving the region.

MSU was also recently ranked the nation's top military-friendly university and military spouse-friendly school.

Bozeman Yellowstone International Airport: Continued Expansion

Airport Director Brian Sprenger shared updates on one of the fastest-growing airports in the region.

The airport served approximately 2.8 million passengers last year and now offers service to 29 destinations.

New and expanding routes include:

• Daily summer service to Boston

• Daily winter service to Austin

• New daily summer service to Phoenix Sky Harbor

• Exploration of future South Florida and Canadian destinations

Terminal Expansion

A multi-phase terminal expansion is underway through 2029 and will include:

• Additional gates

• Expanded baggage claim areas

• More concessions

• Future lounge space

• Potential customs facilities

The airport is also conducting an environmental assessment for a potential runway extension.

Big Sky Resort: Growth Beyond the Ski Season

Big Sky Resort reported another successful year despite below-average snowfall totals.

Snowmaking investments helped maintain strong conditions throughout the season, and additional snowmaking improvements are planned this summer.

New Attractions

Recent additions include:

• Kircliff, the mountaintop glass observatory located above 11,000 feet - open during the summer!

• Alpine Iglu, inspired by European alpine experiences (pictured)

• The M restaurant by the Alinea Group

Lone Mountain Land Company: Building Big Sky's Future

Lone Mountain Land Company shared updates on new events, hospitality projects, and community investments.

New Signature Events

Fat Ice Race
A winter motorsports festival originating in Austria is expected to bring thousands of visitors to Big Sky in February 2026.

Big Sky Food & Wine Festival
The inaugural event featured nearly 50 Michelin-starred and James Beard-recognized restaurants and helped extend visitation beyond traditional ski season.

Resort Tax Transition

An agreement between Big Sky and Madison County will gradually allow more resort tax revenue to remain in the community over the next eight years, increasing local investment capacity through newly established Wellness Districts.

Childcare and Education

The Gallatin River Childcare Center opened in late 2025 and continues expanding enrollment opportunities for local families.

Hospitality Pipeline

Several hospitality projects are moving forward, including:

• Hotel Free West, scheduled for completion in Summer 2027.

• A planned lifestyle hotel with approximately 120 rooms.

• A future resort hotel with approximately 170 rooms.

• Continued involvement in the VIM Hotel project in Bozeman.

Looking Ahead

The common theme throughout this year's seminar was clear: Gallatin Valley continues to invest heavily in infrastructure, housing, education, workforce development, transportation, and quality-of-life improvements to support long-term growth.

While each community faces its own challenges, the level of collaboration among cities, counties, educational institutions, and private industry remains one of the region's greatest strengths. For those who live, work, and invest here, these projects provide a glimpse into what the next decade of growth may look like across Southwest Montana.