Giving Thought: Housing — a crisis with many possibilities

The housing crisis in our region is not new. In 2019, the Greater Roaring Fork Regional Housing Study indicated our region had a housing shortfall of 4,700 units. This study raised concern ahead of the pandemic.

An August 2022 report, entitled “Colorado COVID-19 Regional Resiliency and Recovery Roadmaps Program,” stated that “Prior to COVID, the Roaring Fork region had an affordability gap between household ability to pay and the cost of housing … Before COVID, 40% of households were cost burdened by housing. COVID has rapidly accelerated the trends that have made it more difficult for working households to afford to live in the valley.”

This report was funded by the U.S. Economic Development Administration and administered by the Department of Local Affairs (DOLA) Colorado Resiliency Office in partnership with the Office of Economic Development and International Trade (OEDIT), the Colorado Department of Labor and Employment (CDLE), and Community Builders.

Rapid growth in sales to out-of-area buyers across the region has accelerated the crisis. Between 2019 and 2021, out-of-area buyers in Pitkin County increased by 83%. Garfield County experienced a 79% increase during the same period.

In addition, the rental market has been impacted by the rising real estate prices.

“In Glenwood Springs, rents for apartments increased by 42% in just two years,” according to the same report.

While the cost of housing goes down as one moves further from Aspen, housing affordability remains a challenge for the region. Additionally, commuting through the region impacts not only the environment, but also the communities where residents live but do not work.

It is not an exaggeration to say that our region’s housing problem threatens our long-term sustainability and economic vitality. While there is no silver bullet on the horizon, we are fortunate to have several organizations, coalitions, and groups working on various solutions to shift the trajectory.

Last week, key stakeholders gathered to learn more about housing, discuss solutions, and explore future programs at the Western Mountain Regional Housing Coalition (WMRHC) Housing Forum at The Arts Campus at Willits (TACAW). WMRHC is a non-profit coalition whose mission states, “We believe a regional approach that leverages the skills and resources of our communities is the foundation for increasing affordable housing.” The group comprises local governments from Aspen to Glenwood Springs, Colorado Mountain College Local College District, and the Roaring Fork Transit Authority.

Attendees heard from experts on labor and employment, the rental housing market, real estate, and land development. The issues were explored through a variety of lenses, and solutions that are being discussed for exploration were shared.

Data shared at the forum gave insight into the reality that homeownership is unattainable for almost every income bracket in our region, putting a strain on the rental market and increasing rental costs. Individuals who might otherwise be homebuyers are renters in our region.

Mary Coddington of Capelli Consulting shared that our region does have some opportunity for exploration that might shift the housing landscape even slightly.

She shared, “all jurisdictions participating in the WMRHC have housing programs in place; this is not the norm for communities across the state. New market-rate units may reduce pressure on existing housing stock, but because of the region’s incredibly high demand for housing, merely increasing the housing supply can not address the region’s housing needs. With limited land available for development, opportunities should focus on workforce and community housing.”

WMRHC is exploring several pilot programs aiming to leverage the current housing stock and address rental affordability. One program would support renters in accessing loans or grants to get into rental units as the upfront cost of rentals is often close to $10,000. Another program, modeled after one in Eagle County, supports homeowners willing to add an additional dwelling unit (ADU) on their property. Finally, a deed restriction purchase program was shared.

The deed restriction purchase program would be open to anyone working full-time for an employer principally based in Garfield, Eagle, or Pitkin Counties. Through this program, buyers would identify a property, and WMRHC would contribute 30% of the purchase price in exchange for a price-capped deed restriction on the property. This pilot aims to place renters in a position to buy, freeing up rental units without new construction.

WMRHC is actively seeking philanthropic support for its pilot programs beyond the contributions from participating members to begin piloting their programs.

Our region’s housing problem will not be solved overnight and will require collaboration and innovative thinking. We are fortunate to live in an area with committed stakeholders actively exploring various ways to improve our regional outlook. Without housing for our workforce, we risk losing valuable community members to other areas while those who remain often struggle to thrive.

Allison Alexander is the director strategic partnerships and communication at Aspen Community Foundation. ACF with the support of its donors works with a number of non-profits in the Roaring Fork and Colorado River valleys. Throughout the year, we will work to highlight non-profits in the region.