The Last Best Place
The Wealth Divide Shaping Montana
Written by: Hayden Kern
Behind the gates of the Yellowstone Club (YC), some of the world’s most exclusive members carve through specially curated artificial snow on private ski runs before retreating to their multi-million-dollar lodges to enjoy a Montana wilderness designed just for them. 50 miles north in Bozeman, Montana, locals face a different reality. Housing prices have nearly doubled since 2020, wages struggle to keep up, and those who maintain Montana’s luxury destinations are quickly being priced out.
The impact of the wealth divide goes beyond its economic impact and extends to the local environment. In recent years, the YC has faced multiple lawsuits regarding wastewater pollution in the Gallatin River, raising concerns about the long-term effects that private development might have on these fragile ecosystems. While the luxury resorts have begun to invest in conservation initiatives, such as a new advanced water filtration plant and using treated wastewater for artificial snow production, it begs the question of who Montana is really being built for.
The Cost of Exclusivity
Bozeman has rapidly transformed over the past decade from a quiet mountain town to one of the most expensive places to live in Montana. The COVID-19 pandemic drove wealthy remote workers, real estate investors, and home buyers to indulge in the scenic, quiet environment. While Montana’s beauty has attracted wealth, that wealth doesn’t always translate into jobs or economic opportunities for locals.
Since 2021, the average home price in Bozeman has increased by 85% while income inequality remained.
According to the United Health Foundation, Montana’s income inequality ratio sits at 4.36, with the top 20% of earners making over four times more than the bottom 20%.
Luxury developments like the YC are funded by their ultra-wealthy members, not local businesses. Member donations help to fund their construction projects but don’t create lasting economic security for the average Montanan.
The YC operates on a workforce that usually cannot afford to live near where they work. Employees often have to commute, as housing prices in Big Sky, Montana are unaffordable, with a one-bed apartment averaging $2,500 a month. President of the Bozeman Chamber of Commerce, Daryl Schliem, estimates that roughly 3,000 workers travel from the Gallatin Valley to work at the YC daily. While the YC provides a stable income for these families, Schliem emphasizes that addressing these housing deficits is crucial for a sustainable workforce.
The YC drives the economy but does not provide long-term stability for its workforce.
While Big Sky has limited employee housing, most employees live in Gallatin Gateway, with a 40-minute commute each way. The YC compensates for this commute by running a free employee bus route. Here we see a pattern emerge that while luxury developments like the YC stimulate local economies, their exclusivity for the ultra-wealthy often comes at the expense of locals.
To uphold and give back to the community, the YC has a philanthropic foundation that offers grants for local projects. The Yellowstone Club Community Foundation (YCCF) has made significant contributions to the Big Sky and Bozeman regions, investing over $36 million since 2010, with the foundation granting $2.3 million in 2024 alone, according to the YCCF website. Donations come from their members and guests that fund multiple non-profits and projects to address the needs of the region. The foundation targets livability, health, environment, education, and arts and culture. In 2024, $1.25 million went to livability initiatives, including food banks, childcare programs, and animal shelters. $665,000 went to programs such as Bridgercare, a non-profit reproductive healthcare facility, and Eagle Mount, a center offering recreational opportunities for people with disabilities. The YCCF website states that they also granted $120,000 to environmental programs, including river restoration and sustainability initiatives.
With the 900 club members having a combined net worth of over $290 billion, these donations may seem like a drop in the bucket. However, their contributions are part of a larger partnership between the YC and the surrounding communities. Schliem acknowledges the tension surrounding the YC’s philanthropy, noting that while the YC contributes to countless grant applications, some may feel they could be donating more. However, Schliem believes in a reciprocal relationship, stating that the club and community are in this together and that we should not take advantage of our partners.
As remote work became an option for many jobs, it gave wealthy individuals the freedom to relocate to Bozeman and Big Sky, not because of the employment options but because of the lifestyle the area offers. This shift severely impacted the region’s housing market, as those working remotely only contributed to skyrocketing home prices without creating new local jobs. Schliem reflected on the pandemic’s role in Bozeman’s transformation:
“The pandemic just exposed us. We saw a lot more travelers. Every place else was shut down, and people wanted to come to wide open spaces — no better place than Montana. It just ripped the band-aid off issues like workforce housing, transportation, and daycare. And while we saw these problems coming, nobody could have predicted the level of migration that hit us in two years.”
Bozeman heavily relies on tourism, bringing in nearly $1 billion in 2022.
Visitors and new residents have reshaped the city’s landscape while introducing new challenges for locals. The YC is one of these developments that brings an influx of wealthy visitors. Schliem notes that these members do stimulate local businesses, particularly in Bozeman and Belgrade:
“We see people come into Bozeman. They’ll spend a night or two here before heading up or flying out before going to the Club. Belgrade has probably been the biggest benefactor. The grocery and beverage sales spike when those buses stop before heading up the canyon.”
While some spending trickles into the local economy, the YC remains primarily insulated. Members can access private restaurants, shops, and services all within the gates. This isolation reduces the member’s ability to meaningfully engage with local businesses that could thrive off their tourism. However, Schliem notes that this seclusion sometimes encourages club members to venture into Bozeman to enjoy the town’s vibrant nightlife.
The YC highlights the paradox of luxury developments: while they bring in wealth and create jobs, they also contribute to a disproportionate economy. High-paying jobs are scarce, housing affordability declines, and the local workforce gets the short end of the stick, catering to its elite clientele.
Price of Paradise
John Meyers hiked three miles up a tributary of the Gallatin River into the heart of the YC to take water samples. Samples showed that the YC was discharging nitrogen pollution at twenty-six times the concentration of the receiving water. Isotope sampling would reveal that the nitrogen was associated with wastewater.
Meyers, an attorney with Cottonwood Environmental Law, connected the dots between water impairment and the YC. Meyers looked at a list of water quality impaired streams and noticed higher nitrogen levels in the headwaters of the South Fork of the Gallatin River. The YC was in that area, prompting him to verify if they were to blame.
Meyer’s findings reflect a larger issue. While the YC offers an exclusive slice of Montana, granting its members access to pristine rivers and lush forests, this exclusivity raises concerns about the environmental toll of luxury development.
Over the years, the YC has faced multiple lawsuits for environmental damages, particularly regarding wastewater pollution in the Gallatin River, that threatens local wildlife and recreational use. Meyers states how excess nitrogen levels can create algae blooms that steal oxygen from the surrounding environment, that consequentially kills off aquatic insects leading to smaller and less fish in that area.
The YC has also faced backlash on other environmental practices like using treated sewage water for artificial snow and land development encroaching protected areas. This impact highlights what the YC’s accountability should look like for maintaining Montana’s delicate ecosystems, which are not only a major source of jobs and income for this region, but also one of the reasons why members of the YC are drawn to this place.
In response to these events, the YC has tried to focus on conservation efforts, such as investing in Big Sky’s advanced filtration plant that opened in April of 2024. The $50 million Wastewater Resource Recovery Facility (WRRF) was a massive upgrade for the surrounding ecosystems. Instead of just filtering the water before entering the Gallatin water, the treated water gets reclaimed into man-made reservoirs, ensuring that not a single drop gets into the Gallatin River. The WRRF treats reclaimed water up to within one step of drinking water, the highest classified by the Department of Environmental Quality (DEQ) as Class A-1.
Adam Rutz, the WRRF Superintendent, describes the facility as a “win for the community” to conserve Montana’s deli-ate ecosystems.
Meyers suggested two concerns with the filtration plant: it cannot keep up with the quantity of wastewater from the YC, and the filtration does not fully filter the necessary contaminants. Big Sky Water and Sewer District requires the YC to dispose of up to 160 million gallons of treated sewage per year. Meyers says that while this is a good first step to reducing nitrogen concentration, the YC overproduction of wastewater can be problematic with oversaturation on the ground of the golf course that uses this water, that could find its way into the rivers.
Meyers also suggests that the DEQ regulations for the filtration plant are not comprehensive enough to address other environmental concerns. Current regulations do not address the removal of pharmaceuticals, endocrine disruptors, and polyfluoroalkyl substances (PFAs), and microplastics.
These contaminants may threaten aquatic life, disrupting amphibians’ reproduction, altering fish hormones, and accumulating in our ecosystems in ways we are only beginning to understand.
Without sticker regulations, these contaminants may find their way into the environment, threatening the ecosystems that define Montana. To best protect the health of Montana’s rivers and ecosystems, it is up to us to pressure the DEQ to strengthen water quality regulations to keep luxury developers accountable for their environmental impact.
With these luxury communities growing, everyone feels their environmental and economic consequences, from the workers who maintain these developments, to the locals watching their landscapes change. As development accelerates, the question remains whether Montana’s future will reflect the values of those who call it home or those who only visit.
Montana’s Next Chapter: Coexisting with Growth and Preservation
The YC is not the only luxury development facing scrutiny that threatens Montana. Tourist destinations like Crazy Mountain Ranch, The One&Only Moonlight Basin, and Spanish Peaks Mountain Club continue the pattern of luxury-driven expansion. As the state’s popularity continues to be a beacon for wealthy individuals, leveraging partnerships to preserve the Montana we know and love becomes paramount.
The relationship between our local communities and these luxury developments is complex and provides many challenges but also brings opportunities. While the YC has fueled sectors of the local economy, it also highlights the growing divide between long-time locals and those who come for a brief getaway to experience the beauty of Montana. As development expands into Montana’s most fragile landscapes to appeal to tourism, it raises the question of who Montana is really being built for. The answer lies in how our communities, businesses, and policymakers navigate the delicate balance between our economic growth while preserving local culture and the environment.
For Montana to remain the wild and tight-knit community that has drawn people in for generations, there has to be a conscious effort to make sure this growth does not come at the expense of those who call it home. By focusing on collaboration, accountability, and sustainable development, we can make sure Montana remains a place for everyone, and not a playground for a privileged few.