Wage increases haven’t kept up with rents, study finds

A recently commissioned housing study for Columbia Falls found that about 23% of households in the Columbia Falls area (59912 Zip code) and 36% in the city limits were renters.

Like home prices, rents have also increased substantially over the past five years and wage increases haven’t kept up with rent.

Since 2019, the median gross rent rose an average of 9.2% a year in the city, which was faster than the county. Still, the city provides the lowest median rent in the valley, but the gap is closing.

Demand continues to be high, with a vacancy rate of about 5%, which is lower than Kalispell, which has a vacancy rate of 10 to 15%.

Kalispell continues to add rentals. Since 2023 the city added 779 rentals, including 156 that were income restricted. Another 600 were expected to come to market this year, including 138 income restricted units and 224 luxury properties.

In Columbia Falls, the biggest increase in rentals came from the Highline Apartments, which added 180 units within the city limits. That project was completed in 2020 and was full as soon as it was finished.

In Columbia Falls rent prices range from $1,120 on average for studio apartments, up to $2,110 for three-bedroom units. To afford a three-bedroom apartment, a family needs about $91,150 in income annually to afford the rent and utilities.

It’s estimated that 27% to 32% of renters are “cost burdened” here, which means they pay more than half their income for housing costs. 

Also concerning are rent controlled properties in the city could come off restrictions that were placed on them when they were built through a program that used low-income housing tax credits.

All told, the city has 92 income restricted rentals, all of which were constructed more than 20 years ago.

Columbia Villa and Teakettle Vista Apartments, had to remain affordable for 30 years, but can seek to remove this restriction after 15 years. 

Twenty-four income-restricted rentals for seniors could expire as soon as this year, with another 56 units potentially expiring in 2030. Unless rent restrictions are preserved, units could shift to market prices, the study noted.

Meanwhile, properties for seniors/persons with disabilities are full, with waitlists spanning several months to  one year or more. 

A few income-restricted senior apartments in Kalispell were contacted and were similarly full and had waitlists.