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Transitions in Mountain Communities: Resort Economies and Their Secondary Effects

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Transitions in Mountain Communities: Resort Economies and Their Secondary Effects Transitions in Mountain Communities: RReessoorrtt EEccoonnoommiieess aanndd tthheeiirr SSeeccoonnddaarryy EEffffeeccttss 2006 Transitions in Mountain Communities Executive Summary Transitions in Mountain Communities is the second phase of Northwest Colorado Council of Government’s (NWCCOG) Second Home Study. Phase One – The Study of the Social and Economic Effects of Second Homes In 2003, NWCCOG began working with four of its member jurisdictions – Summit, Grand, Eagle and Pitkin Counties – to measure the number of second homes and study their effects on the local economy. The Town of Vail received a Colorado Block Development Grant to fund the study, which surveyed local and second homeowners in all four counties. The results of the first phase included: • Typology The study analyzed over 64,000 housing units in the four participating counties. Housing units were coded as second homes if the homeowner’s mailing address was located outside the county in which the property was located. • Survey of homeowners NWCCOG surveyed local and second homeowners to determine their attitudes, behaviors, and values, and the current and intended future use of the housing unit owned by second homeowners. • Economic Base Analysis NWCCOG analyzed information gathered from the survey to measure economic drivers, such as visitors, income, and the number of jobs generated from second homes. Phase Two – Transitions in Mountain Communities: Resort Economies and their Secondary Effects In 2006, the same four counties, plus the City of Steamboat Springs, decided to have NWCCOG repeat the study to get further information and determine trends. (The City of Steamboat Springs was not a NWCCOG member when the first phase of the study was conducted.) Their funds were matched by a Department of Local Affairs (DOLA) Energy and Mineral Impact grant. The second phase of the study, known as Transitions in Mountain Communities, was designed to survey homeowners on many of the same topics included in the first phase. The results were used to determine trends and provide information to local officials as they plan and forecast for the future. In addition, the second phase focused on the impact of second homes on local workers and workforce housing. The NWCCOG Second Home Study Steering Committee (compiled of a representative from each participating jurisdiction) decided to update the study name to Transitions in Mountain Communities to illustrate the increased reach of the study. Regionwide • Across the study region, including all four counties and the City of Steamboat Springs, the percentage of homes owned by second homeowners decreased slightly, from 59% in 2003 to 55% in 2006. • Regionwide, second homeowners occupied their properties an average of 64 days a year – most often during ski season and the summer months of July and August. • Second homeowners visit their properties most frequently during the ski season (an average of 24 days December through March) and in the summer (an average of 20 days in July & August). • 73% of second homeowners surveyed said they consider their property a vacation home rather than an investment. • Regionwide, the top three reasons second homeowners purchased their properties were slightly different in 2006 than 2003, with the third and fourth reasons changing places. In 2003: In 2006: 1. Recreational amenities – 83% 1. Recreational amenities – 81% 2. Proximity to ski resort – 73% 2. Proximity to ski resort –75% 3. Scenery/surroundings – 72% 3. Intend to vacation here for years – 71% 4. Intend to vacation here for years – 66% 4. Scenery/surroundings – 64% Eagle County • The percentage of homes owned by second homeowners decreased slightly, from 49% in 2003 to 46% in 2006. • Eagle County second homeowners spend an average of 64 days a year at their properties. • Compared with the region, Eagle County second homeowners have the highest average number of days at their property in the winter (28 days December through March). • Eagle County second homeowners spend an average of 22 days at their property in July and August. • Among the counties in the study, Eagle County has the smallest percentage (46%) of second homes, with a slight majority of the homes owned by local homeowners. • 64% of second homeowners in Eagle County said they consider their property a vacation home. • The three main reasons second homeowners purchased in Eagle County were the same as in 2003, with percentages changing slightly: 1. Recreational amenities (84% in 2003, 81% in 2006). 2. Proximity to ski resorts (82% in 2003, 78 % in 2006). 3. Intend to vacation here for years (70% in 2003, 75% in 2006). Grand County • The percentage of homes owned by second homeowners increased by just 1% – from 63% in 2003 to 64% in 2006. • Grand County second homeowners spend an average of 64 days at their properties each year. • Second homeowners in Grand County visit their properties an average of 19 days during the ski season and 20 in the summer months of July and August. • Regionwide, Grand County second homeowners spend the highest average number of days at their properties during the shoulder seasons (13 days April through June, and 13 days September through November). • 82% of second homeowners in Grand County said they consider their property a vacation home. • The three main reasons second homeowners purchased in Grand County were the same as in 2003, with the percentages changing slightly: 1. Recreational amenities (84% in 2003, 80% in 2006). 2. Scenery/surroundings (72% in 2003, 74% in 2006). 3. Intend to vacation here for years (64% in 2003, 66% in 2006). Pitkin County • The percentage of homes owned by second homeowners decreased slightly, from 55% in 2003 to 51% in 2006. • Pitkin County second homeowners spend an average of 63 days a year at their properties – 24 of those are during the ski season (December through March). • Second homeowners in Pitkin County spend the highest average number of days in the summer (22 days in July and August) in the region. • 72% of second homeowners in Pitkin County said they consider their property a vacation home. • The three main reasons second homeowners purchased in Pitkin County were the same as in 2003: 1. Recreational amenities (78% in 2003, 82% in 2006). 2. Proximity to ski resorts (77% in 2003, 79% in 2006). 3. Intend to vacation here for years (70% in 2003, 77% in 2006). Summit County • The percentage of homes owned by second homeowners decreased slightly, from 67% in 2003 to 65% in 2006. • Summit County second homeowners spend an average of 68 days a year at their properties – the highest annual average in the region. • Second homeowners in Summit County spend an average of 26 days at their properties during ski season, and 19 days in July and August. • Summit County has the second highest number of visits during the shoulder seasons, after Grand County (11 days April through June, and 12 days September through November). Summit County (continued) • Of all counties in the study, Summit has the highest percentage of homes owned by second homeowners, followed closely by Grand County (64%). • 76% of second homeowners in Summit County said they consider their property a vacation home. • In Summit County, the top three reasons second homeowners purchased their properties were slightly different in 2006 than 2003, with the third and fourth reasons changing places. In 2003: In 2006: 1. Recreational amenities – 85% 1. Recreational amenities – 80% 2. Proximity to ski resort – 82% 2. Proximity to ski resort – 79% 3. Scenery/surroundings – 76% 3. Intend to vacation here for years – 69% 4. Intend to vacation here for years – 63% 4. Scenery/surroundings – 64% Steamboat Springs • 46% of homes in Steamboat Springs are owned by second homeowners. • 68% of second homeowners consider their property a vacation home (vs. an investment). • The three main reasons second homeowners purchased in Steamboat Springs were: 1. Proximity to the ski resort 2. Recreational amenities 3. The small-town atmosphere • More than 50% of second homeowners said they currently use their home for themselves, friends and family, and they want to increase their personal use of the home in the future. • Second homeowners in Steamboat Springs spend an average of 57 days a year at their properties. • Steamboat Springs second homeowners spend an average of 23 days at their properties in the winter, and 17 in the summer. Homeownership • The percentage of homes owned by local and second homeowners has changed slightly over the past three years, but the ratios remain similar. • Except for Eagle County and Steamboat Springs (46% second homes), the majority of homes in participating jurisdictions are owned by second homeowners (51 – 65%). Local homeowner values • Local residents said the following values were important to them but did not feel their local jurisdictions were doing an adequate job to meet those expectations/desires: 1. Affordable housing 2. Traffic 3. Job opportunities Local homeowner values (continued) • Local residents rated the following higher in importance when surveyed in 2006 than they did in 2003: 1. Affordable housing 2. Public transportation 3. Education (K – 12) Respondents: Education • Nearly 50 % of locals (excluding Grand County) have a bachelor’s degree. • More than 50% of second homeowners (excluding Grand County) have graduate or professional degrees. Respondents: Other traits • The majority of respondents were Caucasian, between the ages of 45 and 64. • In Eagle County, more than 50% of respondents were female. • For all other counties, the majority of respondents were male. • The majority of local homeowners make between $35,000 - $150,000 annually. • The recreational interests of locals and second homeowners were similar – both groups being very active. Housing Composition Interactive slides show the housing composition of the region and each jurisdiction broken down by the following housing characteristics: • Property value • Square footage • Housing type • Year built Each housing subcategory is further broken down to illustrate • The number of units owned by each family type.
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