The city of Sheridan and the county are working on a housing needs assessment to better understand what the community needs the most.
As the area has been trying to recruit more businesses, companies are saying it's too hard to find housing for employees.
Wade Sanner, Sheridan Community Development Director said they can’t fix anything until they have the right data.
"There's a lot of assumptions that I've made," he said. "I've done an initial analysis of our housing stock, and the recent planning literature and those types of things say that we're missing what's called middle housing."
Those are options like townhomes or apartments for people who aren't ready to move into a single-family home.
Sanner said in the study, they'll be looking at a number of demographics to better understand the current housing market.
"What is our average home price, our average rent? We also are asking for projections for the community, because we've heard that we're about where Bozeman was about eight to 10 years ago. And if we're at that point, is that true? So then we're wanting to see that projection," he said.
Sanner said they are hoping to complete the study by the end of the year. Once the study is complete, they'll be looking for long-term solutions.