Study: Just build 100 housing units and watch the benefits roll in

Brice Wallace

A new study indicates that 100 housing units for residents employed locally in the Wasatch Back would produce several positive impacts.

Those effects include $43.1 million in economic impact from 173 jobs, $4.2 million in local household spending, $73,000 in new local sales tax revenue, and $186,000 in new local property tax revenue.

Those figures are part of the Affordable Housing Economic Impact Analysis, unveiled by the Park City Chamber of Commerce & Visitors Bureau, in partnership with the Mountain Lands Community Housing Trust and prepared by Economic & Planning Systems Inc.

The report notes that the Wasatch Back has evolved into a prominent hub for summer and winter outdoor recreation, resulting in growth in the local population, in guest visitation, and with part-time residents. However, the ability to leverage the economic drivers represented by visitation is dependent on the availability and affordability of housing for the local workforce, it says.

“As we approach the peak season, this report is especially timely, shedding light on the critical role affordable housing plays in sustaining our community,” said Scott House, vice president of partner services for the chamber/bureau. “While analyzing the key impacts, it’s essential to highlight the opportunity costs as well. For example, if we heavily rely on in-commuters, who currently contribute to 70 percent of our employment growth, we face additional expenses, such as the need for parking.”

The report pegs the total impact of the community benefits at $1.6 million, economic value at $47.5 million, and opportunity costs equating to $9.4 million. The total economic impact across the three metrics equates to $58.5 million, or $585,127 per housing unit.

The report indicates that total employment in the area has grown by 47.6 percent since 2010, largely driven by in-commuters who now account for 70 percent of that growth.

“The substantial shift in the composition of the local workforce, with increasing reliance on workers living outside the region, represents a risk to the economic longevity of the Wasatch Back,” it says. “In-commuting workers, by definition, are mobile and have choices as to where to work. Maintaining a commitment to local business has become increasingly difficult, given the growing reliance on out-of-town employees.”

Other effects on the economy and community from 100 resident housing units include $180,000 in local revenues generated through per-pupil funding from the state of Utah for 40 school-aged children; $150,000 in added value from increased volunteer labor contributions annually; 65,700 commute hours eliminated annually, equating to a value of time savings of $1.2 million per year; and 3.3 million vehicle miles reduced each year, leading to a $75,000 decrease in greenhouse gas emissions.

The report noted that households earning $75,000 or less fell by 17 percent since 2010, while those earning $200,000 or more has increased by 291 percent during that time.

“At the root of the region’s resident housing investment policies, dedicated resident housing units ensure that year-round residents can live and work locally, which ripples through the economy and reinforces the stability of other sectors of the economy,” the report says. “The adequate supply of locals housing also impacts the character of the community through greater potential for civic/resident engagement and presence of school-aged children. It also improves the quality of the guest experience with employees that are more engaged in and committed to the local community.”

The study suggests that the fiscal benefits of commercial activities are contingent upon an ample labor supply. “When these elements are balanced, communities thrive,” it says.

Promoting locally occupied housing may entail similar costs to municipalities and counties to serve new residential units while offering substantially greater economic benefits, it says. “Additionally, steps can likely be taken to situate affordable housing near existing population centers and along existing infrastructure corridors, thereby minimizing the marginal increase in service costs,” it says.

The chamber/bureau is continuing a partnership with Mountainlands Housing Community Trust and Rossignol called the Workforce Employer Rental Incentive Program (WE RIP). Under the program, landlords can apply online and rent to the local workforce for their choice of Rossignol alpine skis, nordic skis or snowboard and bindings, a one-week HOTWORX pass and other potential incentives. Rentals will be listed on the WE RIP website and available until rented to all employees of chamber partners. Last year, the program incentivized 12 units, comprising 19 rooms and up to 34 beds, and this season the program hopes to incentivize 40 to 50 beds.

The chamber/bureau also has renewed the Slopeside Village partnership, offering a 10 percent discount on leases, special month-to-month lease terms and waived short-term lease fees of $200 per month through Oct. 31.