Housing costs outpace wage increases

Yampa Valley Housing Authority reviews needs assessment

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By the numbers

Routt County housing market and wages, 2000 to 2008

- Increase in incomes: 17 percent

- Increase in median home sales price: 75 percent

- Increase in rental costs: 5 percent

— Housing cost increases in Oak Creek mostly outpaced those in the rest of Routt County during the past decade, according to a housing needs assessment presented to the Yampa Valley Housing Authority on Thursday.

The median price for a single-family home in Oak Creek increased from $91,213 in 1998 to $345,000 in 2008, a 278 percent jump, the assessment shows. Median single-family home prices in Steamboat Springs increased 179 percent in the same time period, from $269,500 to $753,000.

The median price for condominiums in Oak Creek jumped 235 percent from 1998 to 2008, from $55,000 to $184,000. In Steamboat, median condominium prices increased 143 percent, from $143,900 to $350,000.

In the category of townhomes, Hayden's 346 percent increase from 1998 to 2008 outpaced other Routt County municipalities and unincorporated areas. The median price for a townhome in Hayden increased from $32,500 to $145,000. In Steamboat, the median price for a townhome was $218,500 in 1998 and $586,500 in 2008, a 168 percent increase.

In Routt County overall, median sales prices increased 75 percent from 2000 to 2008, while incomes increased only 17 percent.

YVHA board member Catherine Carson said the assessment shows that the free market isn't keeping up with the Yampa Valley's housing needs.

"I think the key thing is the statistics are showing how much more our housing prices are increasing than our wages," she said.

The Routt County Housing Needs Assessment was paid for with a $52,400 grant from the Colorado Division of Housing and conducted by BBC Research & Consulting of Denver. YVHA asset/program manager Mary Alice Page-Allen said it will be used to guide the Housing Authority's strategic plan and the makeup of future housing projects.

"I wouldn't say there's anything really startling here. There's a lot of affirmation of things we thought we knew. And now we have data to support it," Page-Allen said. "It feeds right into our short- and long-term plans."

Last year, the Yampa Valley Housing Authority also commissioned a $150,000 housing demand analysis that was paid for by the city, the county, the Steamboat Springs Chamber Resort Association, major developers and major employers.

YVHA board member and Routt County Commissioner Nancy Stahoviak said the two studies differ because the market demand analysis focused primarily on Steamboat Springs and did not include as much information about low-income workers as the needs analysis. Page-Allen said the market demand analysis dealt with housing preferences while the latest study deals with needs based on data.

"My hope has always been that we could take the market demand analysis and needs assessment and generate the data internally every year," said Stahoviak, who noted that much of the assessment's data was collected before major shifts in the local housing market. "I think this is the type of information that's pretty dynamic and changes."

Housing Authority President Ed MacArthur said his biggest concern with the study was the age of its data.

"I think it's still going to be a very useful tool," MacArthur said. "We'll just have to figure out how to adjust it to today's times."

YVHA is not actively engaged in any development efforts. As it looks toward future projects, however, MacArthur said the two studies show the Yampa Valley's greatest housing needs are small single-family homes and affordable rental housing.

The assessment's overall findings concluded that the full effect of the national housing crisis is still unknown in Routt County and that because of employment uncertainties, workers may be more comfortable renting in the near term.

The assessment recommended that measures to address work force housing needs should be phased in slowly to gauge workers' preferences for certain products such as deed-restricted units. The assessment also said affordable housing efforts should be concentrated in Steamboat Springs, where most of the county's employment is located and higher densities can be achieved.

Comments

ybul 5 years, 8 months ago

I am glad Ed MacArthur pointed out that the data is old, in contrast to the comment about a free market not working. Unfortunately there are no free markets as the underpinning of that is a sound currency. This does not exist as the federal reserve manages monetary and credit supplies to foster economic growth. Which benefits those closest to its creation at the expense of those furthest from it.

Time will tell if the excess' created by massive government spending, foreign liquidity injections into our country to be the lowest cost producer of american consumables via currency manipulation, created artificially high housing prices and will they correct back down to reasonable levels or not, not just here but everywhere in the US.

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Scott Wedel 5 years, 8 months ago

What a waste of money. The comparative price data is pure junk comparing apples and oranges. The Oak Creek data includes new large homes in the new Sierra View subdivision bigger than anything sold in 1998 in Oak Creek. A quick comparison of comparable properties suggest that average price went from $91K in 98 to about $210K in 2008. And in today's market it is down to around $160K.

And it appears that all of the price data has the same failure to compare prices of comparable properties.

These agencies keep spending $50K or $150K for flawed studies that provide the results desired by the agency paying the bills. Scott Ford writes biweekly articles in The Local that has more relevant data. Only trouble with getting numbers from him is that he'd be accurate and will not automatically provide the BS that advances the political agenda of the local affordable housing agencies.

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