Billings Council Raises Building Heights, Tightens Design Standards

Billings City Council passed amendments to the zoning code on July 7 that increase permitted residential density in targeted areas and add new design requirements for multi-unit buildings.

The updates respond to sustained population growth and rising demand for housing near downtown corridors, where single-family lots have become scarce. City planners noted that the changes align with updated population projections showing Billings adding roughly 4,200 residents by 2030.

The revisions affect parcels along 27th Street and in the Heights neighborhood east of the Yellowstone River. Developers working near the Rimrock Auto Museum site and along Grand Avenue will face new rules that cap building heights at four stories in some mixed-use zones but require at least 15 percent of each site to remain as landscaped open space.

City records show median sale prices for single-family homes reached $387,500 in the second quarter of 2026, up 9 percent from the same period last year. Under the new code, projects with more than eight units must incorporate materials such as brick or fiber cement siding on at least 60 percent of street-facing walls, a standard previously applied only to buildings inside the historic district.

Impacts on builders and buyers

Local firms including those active on the former K-Mart site at 24th Street West and along King Avenue East now must submit design review packets before submitting full permit applications. The extra step adds an estimated 45 days to the approval timeline for multifamily projects. Real estate agents report that buyers seeking townhomes priced between $285,000 and $340,000 have already inquired about units planned under the updated standards.

Timeline and next actions

The ordinance takes effect August 1. Property owners with applications submitted before that date may proceed under the prior rules. Residents can review the full text and interactive zoning map on the city website or attend the next Planning Board meeting scheduled for July 22 at City Hall.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.