In Chaffee County, housing prices have skyrocketed, creating significant challenges for individuals trying to both work and live in the area. This crisis has especially impacted local institutions like Salida High School, where Principal Jesse Hull recalled instances of prospective candidates unable to accept positions due to the prohibitively high cost of living.
“Some candidates who were coming to work here could not because of the prices,” Hull noted. This growing issue underscores the broader dynamics fueling the surge in housing prices, which are rooted in a complex mix of supply-and-demand imbalances, economic trends, and policy constraints.
At the heart of the problem is the insufficient housing supply failing to keep pace with growing demand. Population growth, urbanization, and shifting demographics have contributed to a heightened need for housing, but new construction has lagged behind. This shortfall is influenced by a host of factors, including zoning restrictions, land-use policies, and rising construction costs.
Zoning laws, in particular, play a critical role in shaping housing availability. They often limit where and what types of housing can be built, with a notable bias for single-family homes over high-density developments. The influence of NIMBYism (“Not in My Backyard”) has exacerbated this problem, as communities resist projects that might bring affordable or multi-family housing into their neighborhoods. As a result, housing supply is constricted, especially in areas with desirable job opportunities like Chaffee County.
The issue is further compounded by labor shortages within the construction industry and soaring material costs, which together create significant barriers to new developments. These economic pressures have contributed to an environment where housing costs have far outpaced local wages, particularly in areas with high tourism and in-migration. For workers and families, the gap between earnings and housing expenses has made it increasingly difficult to achieve stability within the county.
Taking a closer look at potential solutions, the Chaffee Housing Authority (CHA) has outlined a strategic plan to address the growing crisis. According to its website, the CHA is actively seeking opportunities to develop affordable housing through a combination of private funding and a public fund established for this purpose. However, funding efforts have been hindered by Colorado’s Taxpayer Bill of Rights (TABOR), which imposes strict spending caps on government revenues. Certain ballot measures aim to counteract this by “de-Brucing,” a policy initiative to remove TABOR constraints, thereby allowing more funds to flow toward affordable housing projects.
The CHA’s plan also emphasizes the importance of increasing the availability of affordable rental units and introducing supportive programs like rental assistance and rapid rehousing. These initiatives are designed to address both the immediate and long-term pressures caused by the housing crisis. Additionally, the CHA is working to align its efforts with broader state and local policies to expand housing options while promoting sustainability and accessibility.
Ultimately, the housing crisis in Chaffee County is a reflection of broader trends seen in many parts of the United States. As tourism and in-migration continue to drive demand, the disconnect between local wages and housing costs remains a pressing issue.
Addressing this challenge will require a multifaceted approach, starting with policy reform, community engagement, and public or private investment in affordable housing solutions. Without initiatives for affordable housing we will see a sharp decline in the workforce around Chaffee county and a decrease in the local economy, having a greater impact on small business.