Lack of Affordable Housing Causing Labor Shortages

While many locals in Colorado struggle to find affordable housing near their jobs, census data show that 34 to 71 percent of housing across 15 Western Colorado counties is vacant, serving as vacation rentals and second homes for wealthy investors and out-of-towners. As Bruce Finley reports, the vacancy rate, coupled with the influx of new residents seeking homes outside of big cities during the pandemic, has caused housing costs to rise dramatically.

For decades, housing challenges primarily afflicted low-wage tourism and recreation industry employees, compelling resorts to install subsidized apartments designed for single workers. But now, after 20 months of COVID-driven influx, officials find that even the highest-paying jobs such as those in the mining industry, which 150 years ago gave rise to mountain settlement, no longer are sufficient for workers to afford housing.

The cost of housing has led to a labor shortage in the region as fewer workers can afford to live near available jobs. Meanwhile, staffing shortages at public transit agencies mean increased wait times and reduced service for riders.

Towns in the region are looking for ways to ease the burden on residents by restricting short-term rentals and pushing for more new housing. Programs in Winter Park and Breckenridge pay property owners to lease to local residents.

As more workers leave the area, writes Finley, the tourism industry and "the attractions that draw visitors in the first place" themselves will likely suffer.