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Crested Butte to Gunnison Corridor - Adopted October 7, 2005
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Housing
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This element of the Plan addresses the issues and policy approaches developed by the Housing Focus Group. In addition, there are recommendations regarding the spatial distribution of future housing development in the County. The element is divided into the following sections: existing data regarding housing in the County from available census data and other studies, and both general policy directions and more specific implementation measures to achieve the goals and objectives established by the group, consistent with a broad mission statement.
Existing Housing Data
Although somewhat dated, the 2000 U.S. Census is the most widely used data to understand existing housing conditions. A complete housing profile, based on the 2000 Census and a more detailed housing inventory and survey conducted by Rees Consulting, is provided in the back of Appendix B (Economic Profile). The most relevant findings from the 2000 US Census are described below.
Housing Estimates and Physical Characteristics
Nearly thirty-four (34) percent of all units in the County are for seasonal or recreational use, which represents one of the most predominant second home markets in the state of Colorado. Nearly sixty (60) percent of all units are single-family units, which is typical of the rural/second home market of the western slope. Nearly forty (40) percent of all units in the area were built between 1970 and 1990, which mirrors the growth cycle felt throughout the state.
Existing Housing Data [1]
The 1999 median household income was $36,916, with wide differences between owner households ($49,480) and renter households ($23,493). The average household income for the state of Colorado was $47,203, nearly 28 percent higher than Gunnison County. Average family income was $51,990, compared to a state average of $55,883, and per capita income was $21,407. Median family income data available for 2002 was estimated at the State of Colorado at $52,330, which represents a percent change of less than one (1) percent, far below the rate of inflation.
Income distribution data indicate that over thirty-two (32) percent of the County residents make less than $25,000. Based on the existing cost of both rental and owner-occupied housing, over thirty-six (36) percent of Gunnison County residents are “cost-burdened” in respect to housing, based on spending over thirty (30) percent of their income for rent or a mortgage. This compares to a 29.3 percent total for the state. The county’s cost burden percentage is one the highest percentages in Colorado, and has been cited by Leland and Associates as a potential hindrance to economic development in the County.[2]
Average earnings per full-time job in the County for 2000 are shown on Chart VI-1. Although more current comparative data are not available, Chart VI-2 displays a comparison of the average full-time job wage for Gunnison County, Colorado and the United States. As shown, wages for Gunnison County jobs fall significantly below both state and national averages.
The differences in wages by sector in 2003 are shown on Chart VI-3. This chart is broken down by Standard Industrial Classifications (SIC), and provides two sets of data: the average wage by sector in Gunnison County; and the percent of each sector’s wage as compared to the State of Colorado. Without exception, wages in Gunnison County fall far below the wages paid by every sector when compared to the state of Colorado. When all jobs are compared against state averages, the average wage for a job in Gunnison County pays sixty-seven (67) percent of the state of Colorado average.
Job growth patterns, particularly within and between sectors, are an important indicator to understand the gap between wages, living costs and the sustainability of a given economy. Chart VI-4 provides a summary of changes between 1970 and 2000. As shown, nearly seventy (70) percent of all jobs created from 1970 to 2000 were in the Service and Professional sectors, which pay far below Colorado state averages.
The growth in Service and Professional jobs are further broken down in Chart VI-5, by the same SIC classifications that appear on Chart VI-3. As cited earlier, all of these job classifications have average wages far below the State of Colorado.
[1] All income data in this section was derived from the 2000 US Census.
[2] The Leland and Associates Study was conducted by Gunnison County was prepared in August 2003 to assist the County in targeting potential businesses for the proposed Business Park.
Cost of Living Index
The importance of the lag of comparative wages is a function of the region’s cost of living. A cost of living index (COLI) measures relative price levels for a “basket” of consumer goods and services in different areas at a given point in time. A reference point is calculated by taking the average cost for the “basket” of goods for all participating places. The participating counties are compared against this reference point and are read as a percentage of the average for participating places. For example, if the average of all costs for all participants were $43,000 it would be given an index of 1.0. Individual cities or areas are then compared and their measured costs indexed as a percentage of the benchmark.
The most recent COLI Study was conducted by the Colorado State University Cooperative Extension in December of 2002, and released to the public in fall of 2004. All 63 counties in Colorado participated in the Study. The Gunnison County results when compared to all counties in Colorado are graphically depicted in Chart VI-6. Housing and Goods and Services costs push Gunnison County to a composite COLI to 1.05, while at the same time the county’s average wage is sixty-seven (67%) of the average of the State of Colorado.
Housing Affordability
The median housing price in the County was $189,400 in 2000, with dramatic geographic differences, which are graphically depicted later in this section. This median price was more than 14 percent higher than the state median of $160,100 and more than 40 percent higher that the Rocky Mountain region as a whole.
To put these numbers in perspective, Gunnison County has failed to keep up with growth in earnings at the state and national levels, and in fact when adjusted for inflation, earnings have fallen more than 15 percent since 1970 (see Chart VI-1). This is primarily due to the County’s increasing reliance on tourism and retail sectors. The average annual wage for workers in tourism related industries is estimated by the State of Colorado at $18,200, suggesting that more than half of these workers earn less than $8.25 per hour. This type of imbalance is not uncommon in tourist-oriented communities, where the development and popularity of second homes tends to push housing costs up and the reliance on relatively low wages creates a gap between housing and wages that tends to accelerate over time.
To supplement the somewhat dated information from the 2000 Census, staff extracted sales data from the Assessor’s Office for both single-family and multi-family sales from 1994 to 2004, and the results are shown on Table VI-1 and Chart VI-7 and Table VI-2 and Chart VI-8. Four areas are used by the Assessor’s Office: Town of Crested Butte, East River Valley (which includes Mt. Crested Butte, Gothic, Crested Butte South and lands south to Almont), Gunnison Area (which includes the City of Gunnison and surrounds) and Rural County (the remains of county lands). Median household income is included to portray the gap between wages and household affordability.
Geographic Differences Between Housing Costs and Occupancy (Chart VI-9 and Chart VI-10)
Gunnison County has widely differing housing costs. The lowest rents ($456 – $479) are found northwest of Gunnison in the general area bordered by State Highway 135 and north of Ohio Creek. The highest rent is found in the upper East River Valley surrounding Crested Butte and Mt. Crested Butte. This data is based on 2000 Census data, and anecdotal evidence suggests that the disparity between regions has grown in the past four years.
The median value of owner-occupied units also shows dramatic geographic differences. The lowest median values ($143,000 - $158,000) are also found in the Ohio Creek drainage, and along the State Highway 50 and State Highway 149 corridors. The highest values ($289,000 – $365,000) are again found in the Upper East River Valley.
1999 Housing Needs Assessment
Melanie Rees of Rees Consulting produced the most definitive analysis of housing in the County to date in 1999. The project was a cooperative effort between Gunnison County, the City of Gunnison, the Towns of Crested Butte and Mt. Crested Butte. Although somewhat dated, the Assessment provided a basis for the development of essential housing regulations in Crested Butte and Mt. Crested Butte as well as pending regulations for the County. The Assessment was based on both census data as well as the results of a community housing survey. This document is considered by the County as the roadmap for essential housing in the County, and augments the recommendations of the Focus Group, which is presented later in this section. Conclusions and recommendations from the report include the following:
- New residential development should be controlled so that at least 58% of all new units built are for occupancy by local residents. This goal for new construction would help to maintain the current balance between second/vacation and primary homes even though there will be still likely a decline due to loss of existing rentals to second home buyers. This type of program would require the cooperation of all jurisdictions in the County.
- The adoption of inclusionary zoning and other mandates or incentives should be considered to encourage or require private developers to build unsubsidized but moderately –priced housing for year-around residents.
- Efforts by the public sector to build new for-sale homes should be concentrated on condominiums, town homes and mobile homes. If “move-up” housing is developed through public efforts or private mandates, buyers should be required to deed restrict units they are selling for occupancy only by local residents.
- A system for monitoring the housing supply in unincorporated areas should be established.
- Real estate listings should be monitored with efforts made to match potential local buyers with appropriate units as they become available.
- A home buyer training program should be created so that residents can qualify to buy homes when they become available.
- A down payment assistance program and/or mortgage program should be established through which affordability restrictions are placed on units in an effort to preserve the affordability of existing units.
- Apartments are needed in the northern region. A project of at least 50 units in size is needed in the Crested Butte area.
- Rental market conditions should be monitored on an ongoing basis to determine when additional projects are needed beyond those now being built or recommended in the Assessment.
- A housing rehabilitation program should be created that allows for mobile homes to be renovated and homes to be expanded to address overcrowding.
- Several temporary or transition housing units should be established to serve renters who are displaced since many renters live in units without leases, some of which are listed for sale.
- Plans should be made for the development of age-restricted housing in the northern region.
- A technical assistance program should be set up for condominium associations to insure that the declarations are in order, proper insurance is maintained and financial matters are well managed so the projects can be approved for Fannie Mae mortgage programs.
Focus Group Recommendations
The Focus group spent a considerable amount of time in brainstorming sessions. The group finally reduced issues down to those shown on the following policy statements and implementation measures. In addition, a separate mediation session was held with the Group to finalize the attached recommendations. The policies developed by the group are expanded within the implementation matrices that are included within Appendix C of Comprehensive Plan.
Highlights include the need to focus development within areas near urban areas and within reach of existing and proposed utilities. In addition, the group is suggesting that the County involve the private sector on the development of additional essential housing, consider the use of housing land trusts and streamline the existing land use regulatory scheme to encourage the development of essential housing. Hard zoning to create a more predictable review process to encourage the development of housing was also recommended.
Goal: Gunnison County recognizes that all County residents should have access to safe, habitable, affordable housing near jobs and transportation, and served by necessary infrastructure. Implementation mechanisms shall provide for the full spectrum of housing needs in a timely fashion.
Objectives
- The Focus Group urges the County Commissioners to complete Intergovernmental Agreements with the Town of Crested Butte and Mt. Crested Butte adopting their updated and current Three Mile Plans. The County should encourage town-like densities near central infrastructure, services and access to public transportation.
- The Group wants to see the housing problem solved in a cooperative fashion between the Towns and the County, and does not want to have to import workers from other counties due to the lack of housing in Gunnison County.
- If currently available affordable housing is eliminated through development or redevelopment, some form of replacement housing should be included within the development.
- The Group urges the County to establish an "Affordable Housing Fund" and other funds through creative revenue generating strategies, designed to insure appropriate financing for infrastructure improvements to meet the demands of growth without placing undue or unwelcome burdens on taxpayers. These funds should also be used to facilitate participation in public/private partnerships and government projects that are compatible with the Mission Statement.
- The County shall administer enforceable minimum building, health, safety and occupancy standards.
- The County shall ensure that all land use codes are easy-to-understand, and streamlined where necessary to clarify development standards.
- The County shall develop incentives to encourage private entities to provide or restore what's needed.
- The County shall encourage public/private/user partnerships to provide or restore what is needed.
- Government-developed essential housing projects should be targeted to meet needs that the private sector does not meet.
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Office Staff
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Office Hours
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Monday - Friday (except for holidays)
8:00 am - noon & 1:00 - 5:00
* Prior arrangements can be made for services during the lunch hour.
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Contact Information
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Geographic Information Services
200 E. Virginia Avenue
Suite #158
Gunnison, CO 81230
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Phone: (970) 641-7620
(Voicemail is available 24 hours per day)
Fax: (970) 641-3061 |
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