Big Sky Ski Resort in Montana has tapped the municipal bond market to raise $125 million for affordable workforce housing, marking a significant public-private effort to address housing shortages in the region. The financing will support construction of 320 units targeting ski resort employees and local service workers.
- Big Sky Resort issued $125 million in municipal bonds for workforce housing
- 320 units to be built, with 60% designated as affordable for households at or below 80% of area median income
- Bonds carry a 2.85% interest rate and 25-year maturity, rated Aa2 by Moody’s
- Federal and state grants cover $40 million of the project’s funding
- First units expected by late 2027, with construction starting in early 2026
- Project aims to reduce employee turnover and improve workforce retention in the tourism sector
Big Sky Resort, located in the mountain town of Big Sky, Montana, has issued $125 million in municipal bonds to fund a new workforce housing initiative. The project, backed by the Big Sky Community Development Authority, aims to build 320 residential units over the next three years, with at least 60% designated as affordable for households earning up to 80% of the area median income. The bonds, rated Aa2 by Moody’s, carry a 2.85% interest rate and a 25-year maturity, reflecting strong investor confidence in the region’s long-term economic stability. The initiative responds to a growing crisis in the resort economy, where median home prices in Big Sky have more than tripled since 2010, pushing out essential workers such as ski instructors, maintenance staff, and restaurant employees. With over 3,000 residents employed in tourism and hospitality, the lack of affordable housing has led to increased employee turnover and staffing challenges during peak seasons. The financing structure includes a $40 million grant from the Montana Department of Commerce, secured through the federal CHIPS and Science Act’s regional workforce development provisions. The remaining funds will come from private investors, including pension funds and community development financial institutions. The project is expected to break ground in early 2026 and deliver the first units by late 2027. Local officials and resort executives say the bond issuance sets a precedent for leveraging municipal debt for private-sector community needs. The move is being watched by other mountain resorts in Colorado, Utah, and Wyoming, where similar affordability challenges persist. The success of the Big Sky model could influence future public financing strategies in high-cost, tourism-driven regions.