Thank you to the Board of County Commissioners for including a ballot initiative for a small 3/10 of a cent sales tax on the fall ballot. Three cents on a ten-dollar purchase is a small price to pay to ensure our community remains sustainable into the future; if we don’t address our workforce housing in a meaningful way, I’m afraid a sustainable future might just be a pipedream.
Tax opponents might claim hyperbole. After all, we have survived the past 50 years without any tax. They might claim that they purchased their home without any government assistance, and so should everyone else or that our government shouldn’t be involved in housing programs.
Bunk, I say. Opponents are flat wrong (although we can certainly disagree without being disagreeable). While you’re entitled to your opinion, you’re not entitled to your own facts.
The fact is, we are at a critical juncture in our communities history and much like the “choose your own adventure” novels of my childhood, we have the ability to choose what type of community we want to be moving forward. Consider the “community conversations” hosted by the Board of County Commissioners earlier this year where residents expressed overwhelming support that the community should and can be doing more to help find solutions to affordable workforce housing. Also consider our annual Workforce Study, where 69% of respondents indicated the lack of workforce housing was detrimental to their business growth.
The fact is, local government is already involved in a variety of housing programs ranging from ownership of Lake Creek Village and management of the Valley Home Store to manage deed restricted units at Miller Ranch. The county is also involved in down-payment assistance programs and financial contributions to assist the Seniors on Broadway Apartments and the Castle Peak Senior Care Community. Each of these meets a clear community need and is a viable and important role for government to fulfill.
The fact is, the need has never been greater. 48% of Eagle County households spend more than 30% of their gross monthly income on housing (source: Habitat for Humanity).
The fact is, our population has grown 8.1% since 2007 and our workforce has grown 6.4% during this same time. Employment has grown 6% and our unemployment rate in 2015 was 3.1%. During this same timeframe (2007-2015), our housing needs have increased 81% – from a catch up need of 4,446 housing units in 2007 to a keep pace need of 8,060 housing units in 2015 for a total housing need of 12,506 units. This is a combination of housing demand from job growth and housing demand from replacement of retirees in our workforce. (source: Eagle County Housing Needs Assessment)
The fact is, in the current Eagle County housing market (2015 full year sales data), the median sales price has risen to $575,000, close to pre-recession levels. In this four-year time period from 2012 to 2016, the Area Median Income (AMI) level has risen 4% while the median sales price of a home in Eagle County has risen 35%. When we look at the current affordability gap we see a $234,310 gap for that 100% AMI family, and even at 140% AMI, there is still a $97,600 gap. These new affordability gap numbers point to the increased need for more affordable housing options for the current and future Eagle County workforce.
The fact is, long-term residential rental inventory is being pressured by never before by the “Airbnb effect” – a shift from owners utilizing their rental units on the short-term market rather than for long term rentals. Anecdotally, most business owners and managers can share a story about their workforce who have been forced to move out of long term living situations as owners make the switch to short-term leasing their rental properties.
The fact is, in 2010 the 65+ population in Eagle County accounted for just 6% of the total population. And by 2025, the 65%+ population is forecast to rise to 17% (source: Colorado Demographers Office). This creates pressure on the workforce housing units, as current workers retire, their housing units change in status from units that house workers to units that do not house workers (assuming the retirees stay in their homes). The new employees who fill the jobs vacated by retired workers create a demand for new housing units.
Vote yes on 1A when your ballot arrives later this month, or when you go to the polls next month. Affordable workforce housing is a community need, and three cents on every ten dollars is a pittance to pay for a sustainable community.
Chris Romer is president & CEO of Vail Valley Partnership, recently named “Chamber of the Year” by the Association of Chamber of Commerce Executives. Learn more at VailValleyPartnership.com and find additional information on Vail Valley Partnership’s public policy positions at https://www.vailvalleypartnership.com/advocacy/vvp-public-policy-positions/.