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 Planning Systems Real Estate Economics Regional Economics Public Finance Land Use Policy FINAL REPORT TETON COUNTY HOUSING NEEDS ASSESSMENT Prepared for: Prepared by: January 2007
TABLE OF CONTENTS PAGE I.NEEDS ASSESSMENT SUMMARY ....................................................................................... 1 II.ECONOMIC CONDITIONS ................................................................................................ 18Employment and Wages .............................................................................................. 18Local Economic Drivers................................................................................................ 26Wages and Housing Costs ........................................................................................... 31 III.DEMOGRAPHIC CONDITIONS ......................................................................................... 32Population and Household Trends............................................................................. 32Demographic Characteristics....................................................................................... 33Household Income ........................................................................................................ 34 IV.HOUSING INVENTORY..................................................................................................... 37Affordable Housing Development ............................................................................. 37Residential Construction Trends................................................................................. 39Housing Forecasts ......................................................................................................... 42 V.HOUSING MARKET CONDITIONS ................................................................................... 44Ownership Market ........................................................................................................ 44Rental Market................................................................................................................. 51 VI.COMMUNITY THEMES ..................................................................................................... 53Community Composition............................................................................................. 53Commuting .................................................................................................................... 63Opinions about Housing and Community Issues .................................................... 68 VII.HOUSING NEEDS ............................................................................................................. 73Demand for Affordable Housing ................................................................................ 73Targets for Affordable Housing .................................................................................. 80 VIII.MITIGATION POLICY ....................................................................................................... 93Current Teton County Standards................................................................................ 93Peer Community Housing Standards......................................................................... 95Proposed Changes to Teton County Standards ...................................................... 103Future Action ............................................................................................................... 108 LIST OF TABLES PAGE TableAP-1 Action Plan…………………………………………….…………………..17 Table 1 Total Employment by Industry, Teton County, 2004........................... 20Table 2 Wage and Salary Employment by Industry Sector, 1990-2005 ........... 22Table 3 Average Annual Wage by Industry, Teton County, 2004.................... 25Table 4 Annual Visits to National Parks and Ski Visits, 1990-2005.................. 27Table 5 Annual Enplanements Jackson Hole Airport, 1995-2005..................... 28Table 6 Wage and Salary Jobs by Three Digit NAICS Category, 1990-2005 ... 30Table 7 Ratio of Housing Prices to Wages, Teton County, 1999–2005............. 31Table 8 Population and Household Trends, 1990-2000...................................... 32Table 9 Household Income Comparisons............................................................ 34Table 10 Median and Average Household Income, Teton County.................... 35Table 11 Household Income Distribution (Household Survey), 2005 ............... 36Table 12 Housing Units by Place, Teton County, 2000........................................ 37Table 13 Affordable Housing Inventory................................................................ 38Table 14 Regional Residential Construction Activity .......................................... 40Table 15 Population and Household Forecast ...................................................... 42Table 16 Housing Demand and Construction Forecast, 2005-2020.................... 43Table 17 Condominium and Townhome Sales, Teton County, 1999-2005 ....... 44Table 18 Single Family Sales Trends, 1999-2005 ................................................... 45Table 19 Residential Listings by Price Range, Teton County, 2006 ................... 46Table 20 Average Price by Lot Size, 2000-2005 ..................................................... 48Table 21 Household Types....................................................................................... 53Table 22 Years Living in Teton County.................................................................. 54Table 23 Cost Burden by AMI ................................................................................. 55Table 24 Teton Residents and Commuters by Tenure......................................... 56Table 25 Residency.................................................................................................... 57Table 26 Volunteering by Teton Residents and Commuters .............................. 58Table 27 Teton Residents and Commuters by Volunteerism.............................. 59Table 28 Primary Source of Income........................................................................ 61Table 29 Business Operation Plans in the Next 5 Years....................................... 67Table 30 Ranking of Affordable Housing Issue by Location of Residence....... 68Table 31 Average Ranking of Housing Solutions by Business Owners ............ 72Table 32 Interest by AMI and Location of Residence........................................... 74 LIST OF TABLES (continued) PAGE Table 33 Interest by Type by AMI .......................................................................... 75Table 34 Interest by Household Composition....................................................... 76Table 35 Interest by Number of People in Household......................................... 77Table 36 Interest by Location of Development ..................................................... 78Table 37 Reason for Lack of Interest....................................................................... 79Table 38 Factors in Looking for a Home................................................................ 80Table 39 Unfilled Jobs by Season and Type........................................................... 81Table 40 Employee Turnover by Season................................................................ 82Table 41 Business Plans for Expansion by Longevity of Business ..................... 83Table 42 Increase Number of Jobs by Season and Type ...................................... 84Table 43 Employees Planning to Retire.................................................................. 85Table 44 Selected Representative Positions of Employees Retiring................... 85Table 45 Households by Tenure and AMI Level.................................................. 86Table 46 Home Purchasing Capacity by AMI Level ............................................ 87Table 47 Available Homes and Purchasing Capacity by AMI Level................. 88Table 48 Ownership Housing Gap Analysis......................................................... 89Table 49 Available Rental Units.............................................................................. 90Table 50 Rental Housing Gap Analysis ................................................................. 91Table 51 Households by Area Median Income Level .......................................... 92Table 52 Income Definitions and Set-Aside Requirements................................. 93Table 53 Population, Households, and Housing Units, 1990-2005 .................... 95Table 54 Median and Average Household Income, 2005.................................... 96Table 55 Ratio of Jobs to Population, 1990-2004 ................................................... 98Table 56 Peer Community Housing Prices............................................................ 99Table 57 Affordable Housing Development by Agency ................................... 101Table 58 Mitigation Policies of Comparable Communities............................... 102Table 59 Commercial Development In-Lieu Fee Calculation ........................... 104Table 60 Employee Generation by Land Use ...................................................... 105Table 61 2005 HUD Income Limits by Household Size..................................... 105Table 62 Maximum Sales Prices for Affordable Dwelling Units...................... 106Table 63 Residential Fee-In-Lieu Update............................................................. 107 LIST OF FIGURES PAGE Figure 1 Total Employment, Teton County, 1990-2004 ....................................... 19Figure 2 Employment by Month and Establishment Type, 2005 ....................... 23Figure 3 Total Employment by Month as a Percentage of Employment .......... 24Figure 4 Population Age Distribution, Teton County, 1990-2004 ...................... 33Figure 5 Household Income Distribution (Household Survey), 2005 ............... 36Figure 6 Regional Residential Construction Activity .......................................... 41Figure 7 Single Family and Condo/Townhome Listings, 2006.......................... 47Figure 8 Market Volume by Lot Size, 2000-2005 .................................................. 49Figure 9 Vacant Lot Sales by Lot Size and Average Price, 2004 and 2005 ........ 50Figure 10 Distribution of Rental Inventory by Rent............................................. 51Figure 11 Reason for Not Volunteering by Teton Residents and Commuters. 60Figure 12 Personal Income by Source, Teton County, 1969-2003....................... 62Figure 13 Teton County, Commuting Patterns, 1990-2005 ................................. 63Figure 14 Teton Residents and Commuters by Tenure ....................................... 64Figure 15 Shift Job to Community if Employment Available............................. 66Figure 16 Affordable Housing as the Most Critical Problem by Longevity ..... 69Figure 17 Ranking of Affordable Housing Issue by Tenure ............................... 70Figure 18 Ranking of Community Issues by Source of Income.......................... 71Figure 19 Major Sources of Personal Income, 2004 .............................................. 97 I. NEEDS ASSESSMENT SUMMARY BACKGROUND The Teton County Housing Authority (TCHA) retained Economic & Planning Systems (EPS) to conduct an affordable housing needs analysis. The three primary goals for the study are to:
The ability for local households to find affordable housing is increasingly difficult in Teton County, Wyoming. The region has tremendous appeal, given the scenic, recreational, and environmental context, and the resulting imbalance between housing supply and demand impacts local wage earners disproportionately. EPS evaluated the housing conditions of Teton County and the surrounding region in 2005 and 2006. The research included a series of interviews with 25 representatives of the community, a survey of Teton County businesses with 233 responses; a regional resident survey distributed to 3,200 households generating 641 responses; and a set of community presentations of preliminary findings. The study includes a compilation of relevant data, including information on historical and projected demographic and economic trends, housing production, rental and ownership housing costs, and community perspectives. SUMMARY OF FINDINGS 1. The community should be recognized for its successful efforts to address housing needs in the recent past. The community has made affordable housing a priority and has taken action to create a sizeable inventory consisting of 361 ownership units and 458 rental/seasonal units for a total of 819 constructed units. Approximately 75 percent of the inventory has been generated since 2000, for an annual production of 125 units. These units represent approximately 5.6 percent of the total housing inventory in Teton County and include affordable for-sale homes, rentals for employees, and guesthouses that are used for employee housing. Requirements from land development regulations, incentives from land development regulations, and employers and community housing groups that have built homes have all contributed to the amount of affordable housing in the valley. Overall, it has been the requirements from land development regulations that created the most homes. Currently, both the Town of Jackson and Teton County require that for all new residential development, 15 percent of it become deed-restricted affordable housing. This concept is known as “inclusionary zoning” or “residential mitigation.” A similar requirement, known as a “linkage requirement,” exists for development of new commercial space. Housing requirements through inclusionary zoning and linkage requirements have created 423 units, or 51 percent of the inventory. Incentives through the land development regulations are responsible for another 282 units, or 22 percent of the total. These incentives include accessory residential units, units built by employers and “increased FAR,” or increased floor area ratio, that allows a developer to build more square feet than what’s allowed by right to accommodate more affordable housing units. Employers have contributed 85 units that are trackable, accounting for 10 percent of the total. The balance of the units comes from direct construction by the Housing Authority, Housing Trust, and Pioneer Homestead. These groups have built 129 units, or 15 percent. It must be noted that in many cases, developers were permitted to dedicate land to TCHA to fulfill affordable housing requirements rather than building actual affordable homes. Although the units built on these parcels are shown being generated through land use requirements, the Housing Authority, Housing Trust, Habitat for Humanity and other individuals actually build the homes. The applicants were required to build affordable homes only 13 percent of the time. The resources required to develop these projects, as well as costs related to off-site infrastructure improvements, were not paid for by the developer even though town and county rules required it, and should be recognized as a form of subsidy by the community. In the future, requiring developers to build the units will enable the community to shift its time and funds and make the housing program more effective. 2. Although the community has made great headway in providing affordable housing, much more is needed, as most local workers are simply priced out of free-market homes. The mismatch between housing prices and incomes that the Teton County Comprehensive Plan noted in 1995 still exists today. Few market homes are available to local wage-earning households. Over the past seven years, the average priced condominium has increased by $24,000 per year while average single-family home prices have jumped $90,000 per year. In 2005, the average priced condominium was $450,000 and the average priced single family home was $1.2 million. Current listings show that 16 percent of single family homes are priced below $1.0 million, 30 percent between $1.0 and $2.0 million, and 18 percent are higher than $5.0 million. Condominium listings are concentrated in the $400,000 to $500,000 range with 22 percent of the total inventory at the $1.0 million and higher range. Approximately 26 percent are priced below $400,000, which translates to 13 units. Of all homes listed today, approximately seven percent are considered affordable to local, wage-earning households (those earning less than 175 percent of the Area Median Income). The degree to which housing is affordable depends on local incomes and wages. Over the past seven years, average home prices have increased by 79 percent, while average wages have increased by only 22 percent, meaning that in Teton County, local wage earners are priced out of the market. The growing gap between wages and home prices is a result of increasing market pressure from buyers whose income is not dependent on the local economy. Typical local wage-earners (those earning 175 percent of the Area Median Income or less) account for 84 percent of local households 3. The percent of Teton County employees living outside the County has grown dramatically. Given the lack of affordable options within Teton County, WY, many locals have moved to outlying areas. Between 1990 and 2000, commuters increased from 14 percent to 20 percent. By 2005, the percentage of local employees that commute into Teton County increased to 32 percent, more than double the amount in 1990. The amount of new home building permits issued in Teton County, WY compared to the region also shows how workers have migrated to outlying areas. From 1995 to 1999, Teton County, WY, accounted for 55 percent of the regional total of 483 new homes permitted. From 2000 to 2004, total construction permits in the region increased to 583, but Teton County, WY’s share dropped by nearly half to 29 percent. 4. The loss of locally residing employees has long-term implications on community character; specifically on local businesses and volunteerism. While there will always be some amount of commuting due to growth, land constraints, and individual choices, there should be more opportunities for employees to live locally. Local residents volunteer for the community, work at local businesses and support local business as consumers. Based on examples from other high-cost mountain communities, a robust population of locally employed residents is central to the success of locally-oriented businesses. To the extent locals live outside Teton County, their shopping dollars will be spent elsewhere. Additionally, survey responses show that 25 to 45 percent of employees who recently moved from Teton County, Wyoming to outlying communities report a desire to shift their job to their new home community. As 20 percent of Teton County businesses reported plans to open new locations, half of which would be in outlying areas to the county, many employees will get the opportunity to do so. These trends also suggest that local business activity is likely to erode if housing is not addressed. In addition to economic factors, affordable housing helps residents to participate more in their community. The survey results show that two-thirds of local resident employees volunteer compared to only one-third of employees who commute. For those who do not volunteer, locals report “employment conflicts” while commuters report “distance from residence” as the primary reasons limiting their involvement. If Teton County wants to maintain the existing sense of community, it must increase opportunities for employees to live locally. 5. Current efforts should focus on for-sale housing for households at or below 120 percent of median income, recognizing that long-term needs of the community will be diverse. Future housing policies should address a wider spectrum of housing needs at higher incomes. Affordable housing opportunities should be available for community members with a broad range of incomes. This study shows a substantial need for homeownership across all income levels. While the Housing Authority’s mission is to provide homeownership opportunities for those who make 120 percent of median income and below, this study suggests that households above 120 percent of median income would also benefit from deed-restricted affordable housing. The needs of these households warrant particular attention, given that they over-qualify for affordable deed-restricted housing opportunities, yet cannot afford market rate homes. In 1995 when affordable housing policies came into play, affordable housing was intended to be a stepping-stone into market housing. Since then, the gap between median income and average free-market housing costs has grown considerably. In the future, the community’s housing program should increase the number of categories to address needs of higher income households that will become priced out of the market. These units, as well as the lower income units, should be subject to a deed restriction that ensures long-term affordability using resale appreciation caps. Although the study recognizes the need for affordable housing to expand to households of higher incomes, it indicates that the majority of those in need of deed-restricted affordable housing at this time are those households at median income and below. The study also finds that the affordable rental housing market is currently meeting the demand. As the Town redevelops, portions of the existing rental housing will be razed. Thus, there is a critical need to monitor future rental conditions, documenting changes in supply and demand of rental housing. At this time, Town and County efforts to build housing should focus on for-sale housing for households at or below 120 percent of median income. 6. There is high demand for affordable housing. The survey responses show what housing types are most in demand. The household survey in this study identified an estimated 700 households interested in deed restricted ownership housing. There is solid demand for affordable housing from households making from 30 to 150 percent of median income, peaking at 80 to 100 percent. Respondents understood that deed-restricted units had modest square footage and that there were certain resale limits. Of those interested in deed-restricted housing, two-person households made up the majority. Any future housing production should concentrate on this niche as it represents the greatest demand. The survey also points to demand for housing for singles in town. Thirty-three percent of interested condominium buyers were single and want to live in the Town of Jackson. Another figure that jumped out was the 26 percent of potential duplex buyers who are families with children. This group was open to any location in Teton County, WY. For those reporting no interest in deed-restricted housing, 37 percent stated that they would prefer a single family home rather than the attached housing types listed in the survey. Approximately 19 percent were not interested due to the deed restriction. These figures are significant because twice as many respondents were concerned about the type of house, rather than whether it is deed-restricted. The survey suggests that if the type of house fits their needs, then a deed restriction is not a major impediment. 7. The community should set a goal for the percentage of the workforce that it wants to house locally. The vitality of the valley depends on a strong local workforce. Other resort communities and downtown districts in large cities have suffered as a result of out migration. Teton County is experiencing a loss in the local workforce at an alarming rate. The 1995 Comprehensive Plan identified a clear need for affordable housing; however, the plan did not articulate a goal for the amount of the workforce to be housed locally. Other mountain resort communities have watched their workforce leave. Local businesses suffer, the level of service to guests diminishes, and the communities become less desirable places to visit and live. Peer mountain resort communities struggle with this number, but most believe that 60 percent of the workforce commuting is the tipping point where a sense of community diminishes significantly. As Teton County has not yet reached this number, it is recommended that the goal be set to house 60 percent of the workforce locally. 8. The community should set two housing targets; one that will allow the community to “Keep Up” with housing needs, another that will allow it to “Catch Up” to housing shortages. Commercial and high-end residential growth in Teton County has resulted in a shortage of affordable housing. There is a need in the community to “catch up” with this past growth. Additionally, to address current and ongoing growth, affordable housing policies must allow the community to “keep up” with housing needs. Keep Up First, to address housing needs associated with new growth, a certain amount of affordable housing must be built in conjunction with new commercial and residential development. This method is known as “keep up.” As noted in Section 1, this community has set a good precedence in requiring developers to build affordable units in conjunction with free-market development. However, the rate at which a developer must provide affordable housing, currently set at 15 percent of the homes in a development project, has not been updated since the community adopted it, based on the original 1993 study on the housing needs of the community. Due to the diminishing supply of developable land, increasing demand from part-time residents, and the sharp increases in housing costs, an adjustment to the rate is appropriate. Fifteen percent is low compared to peer communities. For communities facing comparable pressure on the housing inventory, the rates range from 40 to 60 percent. For example, Aspen and Telluride face similar land constraints, have a large sector of part-time residents whose incomes are independent of the local economy, and have comparable home prices. Given the magnitude of the housing challenge, Jackson and Teton County should increase the rates to a minimum of 40 percent. Catch Up Second, to address the housing shortage that has resulted from past growth, the community should set a goal of creating a certain amount of units over a designated span of time. This method is known as “catch up.” There are two areas in which the community should catch up:
Given the size of these two needs, it is recommended that the community adopt a long-term plan to build more houses in addition to those required by developers. As an example, if the community were to “catch-up” to housing needs over a 20-year period, annual production would consist of 27 units (535/20 years) to address job shortages. In addition, production should include 11 units annually (215/20 years) to address retirees, for a total of 38 units per year. 9. The fees-in-lieu of developing housing also need to be updated. The current regulations allow developers to pay a fee in lieu of developing actual affordable housing units. Fees-in-lieu are based on 1993 market conditions. The housing regulations include two fees, one for residential mitigation and one for commercial linkage. As part of this study, both fees have been updated and should be adopted by the Town and County in the immediate future. As shown in the description of each fee below, the increase is substantial. Given that the increase accounts for more than 10 years of change, it is reasonable. An annual escalator should be included in the adoption to ensure future fees are adjusted on a regular basis. Chapter 8 of this report provides detailed calculations and a nexus analysis that justifies the commercial linkage fee-in-lieu program, as well as the residential mitigation program and associated fee-in-lieu.
10. In response to current market conditions and trends, the Town and County should adopt updated affordable housing policies and apply them consistently. Large developments generate the greatest number of affordable housing units due to the volume of units. In the recent past, a number of large-scale projects have been approved, such as Melody Ranch, Wilson Meadows, 3 Creek Ranch, and Snake River Associates (SRA). There will be fewer projects of this magnitude in the future, given the reduction in the number of large-scale sites to be developed. As these types of development opportunities diminish, the number of redevelopment projects will grow. In anticipation of this trend, the Town and County should make all areas of their jurisdictions subject to uniform standards and apply them consistently among all land use decisions. The Action Plan at the end of this section identifies several steps that Town and County agencies can take. 11. The Teton County Housing Authority should play a leadership role by providing production targets and strengthening relationships with other housing providers. The most successful housing programs are those that draw from a range of community resources to achieve the goals. The Teton County Housing Authority (TCHA) is a strong asset of the community. In addition to developing projects and administering the collective housing inventory, it has played a stewardship role by enabling other community groups, such as the Jackson Hole Community Housing Trust, Habitat for Humanity, and Pioneer Homestead, to move forward with projects. Proceeds from the Specific Purpose Excise Tax (SPET) have been channeled through TCHA for land acquisition for these groups. In some cases TCHA assumes responsibility for administering deed restrictions and sales for projects built by others. Another effective housing production group consists of private developers. One of the key findings of this study is the effectiveness of private sector entities in producing affordable housing units. Development projects are challenging for a variety of reasons, some of which include the inevitable NIMBYism (Not in My Backyard), funding, and the public approval process. Adjusting fees-in-lieu up to cover staff time should be completed, with the goal of creating a cost differential that provides an incentive for developers to construct units. Each community group has a niche that has emerged over time, with Habitat focusing on the lowest end, the Housing Authority mostly working with households earning between 80 to 120 percent of median income, and the Trust targeting the 120 percent group. The Housing Authority should expand its database to monitor annual production by all groups, and match the collective production to the need identified by this study. Because the greatest funding is needed for housing for households in the lower income brackets, there may be additional financial burden placed on the Housing Authority. To the extent possible, the groups should balance the production of housing with the needs identified in this study. 12. The Housing Authority should continue to raise awareness regarding housing needs. Community members support affordable housing; however, when pressed to compare it to other issues, protecting the environment is the top priority. Jackson Hole is an environmentally unique valley. The need for affordable housing is significant and is not going away, but housing must always strike a balance with the environment. Affordable housing means a lot to Jackson Hole, not just for economic reasons; it also helps the valley maintain its sense of community, and can reduce environmental impacts generated by commuting. Raising awareness about the housing needs in the community will help build support to implement the recommended Action Plan. The more people who support affordable housing, the more successful the program will be. Raising awareness can help with NIMBYism and can alleviate environmental concerns. For example, well-designed affordable housing that’s located in appropriate places near existing development and outside of environmentally sensitive areas can serve both community goals of affordable housing and environmental protection. Specifically, the community can adhere to smart growth principles such as mixing land uses, taking advantage of compact building design, creating a range of housing opportunities and preserving open spaces when creating affordable housing. ACTION PLAN The Action Plan provides a road map for community leaders to address housing needs. The Plan is divided into five major topic areas:
Action items are provided with a tiered priority ranking, as shown in Table AP-1. Tier 1 items are high priority items that should be addressed in the very near term, within 2007. Tier 2 items are also important, but some will require additional study and analysis, or modifying complex regulations and administrative procedures. Tier 3 items are currently lower priority, but should be kept in mind to be addressed in the next three to five years. A summary table is provided at the end of this section that clarifies the priorities of the recommended actions. I. POLICY GUIDANCE 1.1 Adopt the methodology and findings of this study. Teton County residents and business owners collectively view housing as a priority. This study defines the housing needs of Teton County including the Town of Jackson, and provides data and analyses to support affordable housing policy decisions and implementation strategies. Adoption of the study with formal recognition of the need by elected and appointed officials. 1.2 Establish a goal for the community to house a certain percentage of the local workforce. To provide overall guidance to affordable housing mitigation policies, the community should adopt a goal of housing a certain percentage of its employees. Peer communities provide direction for setting mitigation standards while taking into account local conditions and policy considerations. 1.3 Work with the Town and County to adopt a uniform set of affordable housing regulations. The current regulatory framework is confusing and inconsistent. Establishing uniform affordable housing standards will make a clear statement as to the community’s goals regarding affordable housing, and simplify the development process in both jurisdictions. 1.4 Recognize market trends and adapt policies and regulations to tap into the market. Currently, the residential development that most effectively generates affordable housing are those developments of 120 or more acres. Land use regulations allow density to increase with total development size; accordingly, the County has generated the most affordable housing from its large tract developments. Because there are only a few more of these large tracts of undeveloped land in the County, the most important mitigation tools are likely to shift from those of the County to those of the Town. As County development opportunities become more limited, redevelopment pressure will increase and the Town is likely to face an increasing level of redevelopment activity. 1.5 Recognize TCHA for its stewardship of funds and programs on behalf of the community. The TCHA has matured into an organization that effectively administers affordable housing units. They ensure that the affordable housing goals of the community are being met through the review of development applications. They protect community assets through compliance of deed-restricted units. Most importantly, they have successfully leveraged taxpayer money to partner with the private sector to build homes and bank land for future affordable homes. For example, the TCHA used $9.3 million 2001 Special Purpose Excise Tax (SPET) funds to acquire parcels for future TCHA and Housing Trust projects. These funds were also used to leverage private sector financing and federal subsidies to construct approximately 100 new units. The land-banked parcels are now valued at approximately $10.0 million. Exceeding the original proceeds after a substantial allocation to build housing. II. RESIDENTIAL AND COMMERCIAL AFFORDABLE HOUSING STANDARDS 2.1 Update residential affordable housing fees to reflect current market conditions. The current residential fees are based on 1993 market conditions and prices. Fees lower than market conditions shift the burden to the taxpayers to build the required homes. To place this mitigation on the developers, the County and Town should adopt the updated fees recommended in this study. 2.2 Apply updated residential mitigation fees to building permits issued on lots platted prior to 1997, lots formed through the family subdivision exemption, and homes permitted on 35-acre tracts. The number of existing platted lots in both the County and the Town exceed the number of lots likely to be created in the future through the subdivision process. Thus, it is imperative that lots created outside the subdivision process be included in a comprehensive residential mitigation program. The family subdivision exemption process allows property owners to subdivide land and establish new lots for extended family members. The exemption resulted in 80 new lots over a nine month period in 2006. 2.3 Update commercial affordable housing fees to reflect current market conditions. The current commercial development fees are based on 1993 market conditions and prices have escalated by more than 100 percent since then. The County and Town should adopt the updated fees recommended in this study and incorporate an annual inflation adjustment. 2.4 Apply commercial mitigation throughout the County. Currently, the County requires developers to address commercial mitigation in the Planned Resort zone districts, including Teton Village, Astoria, Jackson Hole Golf and Tennis, and Grand Targhee. Because mitigation programs have been one of the most effective methods of producing housing, the standards should be required from all commercial development throughout the County. This also provides consistency at the community level. 2.5 Increase the residential mitigation standards above the current 15 percent level. The disparity between wages and local employee household incomes and housing prices justifies increasing the mitigation requirements above the current level of 15 percent. Based on comparisons in other high priced mountain communities, it is recommended that the Town and County consider increasing the mitigation standards to 40 percent. 2.6 Increase the commercial mitigation standards above the current 15 percent level. The disparity between wages and local employee household incomes and housing prices justifies increasing the mitigation requirements above the current level of 15 percent. Based on comparisons in other high priced mountain communities, it is recommended that the Town and County consider increasing the mitigation standards to 40 percent. 2.7 Modify the residential mitigation fees to base requirements on floor area rather than bedrooms. Given trends for larger homes, the community should ensure residential mitigation requirements are commensurate with the size of home. Mitigation requirements should be assessed at time of plat for new development and should be based on the maximum FAR allowed per the subdivision plat. Mitigation for construction activity that falls outside the standard subdivision approval process (lots created prior to 1997, 35+ acre tract, and family subdivision exemption process) should be triggered at time of building permit and should be based on the floor area of the proposed dwelling unit. The clear and concise residential mitigation requirements will make development review easier and reduce time for both staff and applicants. 2.8 Update commercial mitigation to reflect current year-round employment levels. The current factors used to calculate commercial mitigation requirements were established in 1993 specifically for seasonal employee needs. The generation rates are factored up or down based on the seasonality and wage level of a given employment sector. The standards should be updated to reflect current employment ratios and should be aggregated to simplify the administration, such as accounting for changes in use over time. III. LAND USE STRATEGIES 3.1 Create an overlay district for affordable housing. The community will be well served to establish an affordable housing overlay similar to the Natural Resources Overlay. This will direct affordable housing to the appropriate nodes of development where utilities, access to transit, and local services exist. 3.2 Establish minimum density standards within the Affordable Housing Overlay. Lot sizes often have a large impact on home prices due to infrastructure costs that increase as density decreases. Smaller lots also mandate smaller homes, which can further reduce costs. Apply minimum density standards to nodes within the Affordable Housing Overlay. This strategy may allow the private market to provide housing affordable to the higher wage segments of local employee households. A cap on home sizes in conjunction with this strategy could also be effective. 3.3 Revise the Affordable Housing PUD standards. The Affordable Housing PUD is not functioning as expected due to the high cost of building affordable housing, the expense and uncertainty of the entitlement process, and the vagueness of the density allowed. To help offset the high cost of developing, this tool would be appropriate to enable the development community to build the higher category home (100-200% of AMI). 3.4 Adopt a growth management policy that ties new housing growth to new affordable housing Market forces dictate that most new housing in Teton County will not be affordable to the local workforce. The high cost of housing is creating a socially and economically stratified population, and is dislocating local residents. The County and Town of Jackson should adopt a growth management policy that links the creation of affordable housing with the growth of free market units. 3.5 Continue supporting the development of Accessory Residential Units (ARUs). ARUs are another way of providing affordable rental housing for the local workforce. They can also be useful for local families who may need space for aging relatives. Keeping the size at or below 1000 square feet is important to maintaining the affordability and use as a long-term rental. IV. HOUSING PRODUCTION 4.1 Formalize the selection of mitigation methods, requiring developers to construct the required housing on-site. Mitigation is the most effective affordable housing tool in Teton County. Improving the mitigation programs is the single most productive action to address the housing needs of the future. The current program allows many developers to fulfill their mitigation requirements with fees-in-lieu or by transferring vacant land to develop at a later date. For a number of reasons, these alternatives result in few units and greater subsidies by the community. Updating the fees will help rectify the situation. However, the community time investment (including staff, elected, and appointed officials) is far greater when fees or land is provided. The community will use its time and money more effectively by restricting mitigation payments and requiring more on-site development. 4.2 Develop an inventory of potential affordable housing sites and prioritize acquisitions. TCHA should identify priority sites for affordable housing development and acquire them as funds and opportunities are available. This secures a future land supply for affordable housing development, and gives TCHA more control over affordable housing development. 4.3 Pursue additional funding opportunities for affordable housing. Pursuing additional dedicated revenue sources will diversify revenue sources, and help to stabilize revenue fluctuations due to market upturns and downturns. Many communities have been successful in imposing Real Estate Transfer Assessments (RETA) on new developments, which are a voluntary assessment that functions similarly to a Real Estate Transfer Tax (RETT). RETTs are currently prohibited in Wyoming; however, local officials should lobby state representatives to change the legislation to allow them. RETTs are highly effective funding sources in resort communities with significant housing stock in second homes and rental/investment properties. 4.4 Monitor the rental market and rental housing needs. Look for opportunities to purchase existing rental and lodging properties for affordable housing. The market is currently addressing the rental needs in the market. However, as redevelopment pressures increase there is a risk that affordable rental properties will be lost to more expensive housing. Look for opportunities to purchase existing rental properties before they are redeveloped. Outdated or obsolete lodge properties are a unique local resource for expanding rental housing. Many of these properties are underperforming due to a shift in guest profiles to the high-end market and changes in customers’ standards for lodging properties. As opportunities arise, these properties are good opportunities to be renovated and leased as affordable workforce housing. 4.5 Develop an inventory of existing multifamily developments including free market and affordable units and identify opportunities for potential acquisition. Build on the inventory assembled in this study to identify all affordable and market rate rental properties in Teton County. Monitor these projects over time and consider acquisitions as opportunities arise. Acquiring existing rental properties for affordable housing will guarantee long-term affordability, and generate lease revenue to TCHA. 4.6 Establish a “No Net Loss” policy. One of the unique attributes of Jackson and Teton County is the number of existing dwelling units that provide affordable housing to current residents. The percentage of employees residing locally exceeds that of most other high-cost resort communities. As market pressure for redevelopment grows, it is imperative to adopt a no net loss policy to ensure that existing dwelling units are replaced (e.g. if razed for redevelopment) in addition to the mitigation requirements imposed on new development. 4.7 Streamline the entitlement process for affordable housing development. The time and staff effort to entitle an affordable housing project contributes to the cost of development. Entitlement requirements should be minimized and development fees reduced or waived to the extent possible to reduce development costs and create incentives for developing affordable house. The Affordable Housing Overlay is an example of where streamlining the entitlement process would be appropriate. 4.8 Develop rental, ownership, and seasonal housing developments that business owners and small-scale developers can buy into to fulfill their mitigation requirements. The community needs opportunities for small-scale mitigation efforts that enable developers or business owners to directly control and benefit from the mitigation units they are required to fund. If the TCHA can develop properties that are funded by a consortium of private entities, it will increase the quality of the overall housing program, as there will be more direct relationships (and accountability) between residents and businesses. 4.9 Expand the focus of TCHA to that of a master developer that acquires and entitles land and conveys sites for affordable housing to builders. As a master developer of affordable housing, TCHA will have more control over when and where affordable units are developed. Furthermore, as a master developer, TCHA could pass down to a developer the day to day administrative and logistical tasks related to the development and construction process, freeing up staff time for more large scale planning and strategy efforts. 4.10 Work with private developers and community organizations to use consistent standards for tenant and buyer qualification and long-term affordability controls. Having consistent standards for tenant/buyer qualification will improve the client experience and encourage more potential tenants/buyers to consider purchasing or renting deed restricted or affordable units. It will simplify the process for clients who may not make distinctions between housing providers. V. OTHER ADMINISTRATIVE GUIDELINES 5.1 Lower the AMI cap for rental mitigation units from 120 percent to 80 percent of AMI. Based on a survey of more than 500 rental units, only 20 percent of market rents exceed rents affordable to the 80 percent AMI level. (This research did not include subsidized rental properties.) Ideally, rents should be below market rates to achieve the overall purpose of an affordable housing program. Current rental market conditions in Teton County are such that the majority of the rental inventory is priced below 80 percent of AMI. Thus, the standards should not allow any rents over this level. As redevelopment pressure increases, it is likely that the supply of rental housing will drop, prices will increase, and the 80 percent AMI cap will set rents that fall below market rates. 5.2 Update commercial mitigation regulations to allow ownership units to meet mitigation requirements. Because the previous analysis correlated commercial linkage with seasonal housing, the housing requirements had to be fulfilled with rental housing to be occupied, in theory, on a seasonal basis. Over time, the actual occupancy of these units has been year round, with tenants renewing the five-month leases. Commercial developers should be allowed to choose to build ownership or rental housing, depending on the needs of their commercial operations and their resources for property management. 5.3 Simplify commercial mitigation requirements to eliminate review of changes in use. The current commercial mitigation requirements identify different uses in the Town and in the County, each with their own employee generation rates. Based on the experience of other communities, the greater specificity creates challenges over time. When tenants change, the new uses should provide the incremental increase in housing mitigation based on the new use, or TCHA should track the housing surplus based on the reduced demand. Neither is practical from an administration standpoint. A consolidation of categories will simplify the program while maintaining its effectiveness. 5.4 Revise the commercial mitigation requirements to ensure the Town and County use the same methodology. At this time, the County applies its mitigation requirements in terms of employees housed, while the Town has a square footage based requirement. The two should be consistent, ultimately providing a square footage based requirement that can be easily quantified and enforced that is an accurate reflection of the employees to be housed. 5.5 Update the Needs Assessment every five years with a survey of residents and businesses in the region. The need for housing will not remain constant over time. It is important to continue to monitor housing needs and market conditions so that affordable housing requirements can be adjusted (increased or decreased) as conditions warrant. Furthermore, updating the Needs Assessment will continue to bring needed attention to the issue of affordable housing in Teton County, and reinforce community support for housing. Table AP-1 Action Plan Teton County Housing Needs Assessment
 
Tier2 Description I. Policy Guidance 1.1 Adopt the methodology and findings of this study. 1.2 Establishagoalforthecommunitytohouseacertainpercentageofthelocalworkforce. 1.3 Work with the Town and County to adopt a uniform set of affordable housing regulations.
1.4 Recognize market trends and adapt policies and regulations to tap into the market. X X 1.5 RecognizeTCHAforitsstewardshipoffundsandprogramsonbehalfofthecommunity. X II. Residential and Commercial Affordable Housing Standards 2.1 Updateresidentialaffordablehousingfeestoreflectcurrentmarketconditions. 2.2 Applyupdatedresidentialmitigationfeestobuildingpermitsissuedonlotsplattedpriorto1997,lotsformedthroughthefamilysubdivisionexemption,andhomespermittedon35‐acretracts. 2.3 Updatecommercialaffordablehousingfeestoreflectcurrentmarketconditions. 2.4 Apply commercial mitigation throughout the County. 2.5 Increasetheresidentialmitigationstandardsabovethecurrent15percentlevel. 2.6 Increasethecommercialmitigationstandardsabovethecurrent15percentlevel. X 2.7 Modifytheresidentialmitigationfeestobaserequirementsonfloorarearatherthanbedrooms. X 2.8 Updatecommercialmitigationtoreflectcurrentyear‐roundemploymentlevels. X  III. Land Use Strategies 3.1 Create an overlay district for affordable housing. 3.2 Establish minimum density standards within the Affordable Housing Overlay. X 3.3 Revise the Affordable Housing PUD standards. X 3.4 Adoptagrowthmanagementpolicythattiesnewhousinggrowthtonewaffordablehousing. 3.5 Continue supporting the development of Accessory Residential Units (ARUs). IV. Housing Production 4.1 Formalizetheselectionofmitigationmethods,requiringdeveloperstoconstructtherequiredhousingon‐site. 4.2 Developaninventoryofpotentialaffordablehousingsitesandprioritizeacquisitions. 4.3 Pursue additional funding opportunities for affordable housing. 4.4 Monitortherentalmarketandrentalhousingneeds.Lookforopportunitiestopurchaseexistingrentaland lodgingpropertiesforaffordablehousing. 4.5 Developaninventoryofexistingmultifamilydevelopmentsincludingfreemarketandaffordableunitsand X identifyopportunitiesforpotentialacquisition. 4.6 Establish a “No Net Loss” policy. 4.7 Streamline the entitlement process for affordable housing development. 4.8 Developrental,ownership,andseasonalhousingdevelopmentsthatbusinessownersandsmall‐scaledeveloperscanbuyintotofulfilltheirmitigationrequirements. 4.9 ExpandthefocusofTCHAtothatofamasterdeveloperthatacquiresandentitleslandandconveyssitesforaffordablehousingtobuilders. 4.10 Workwithprivatedevelopersandcommunityorganizationstouseconsistentstandardsfortenantandbuyerqualificationandlong‐termaffordabilitycontrols.  V.OtherAdministrativeGuidelines5.1 Lower the AMI cap for rental mitigation from 120 percent to 80 percent of AMI. 5.2 Updatecommercialmitigationregulationstoallowownershipunitstofulfillmitigationrequirements. 5.3 Simplify commercial mitigation requirements to eliminate review of changes in use.
5.4 Revise the commercial mitigation requirements to ensure the Town and County use the same methodology. X 5.5 Update the Needs Assessment every five years with a survey of residents and businesses in the region. Source: Economic & Planning Systems II. ECONOMIC CONDITIONS The ability of people to afford housing is largely determined by the economic conditions in the region, including the type of jobs people hold and the prevailing wage levels. Housing prices in most communities are a reflection of the wage and associated household income levels determined by the overall economy. However, in communities with special aesthetic or cultural characteristics, such as Teton County, housing prices are affected by a number of other factors, such as constrained land supply and competition from buyers with imported income and equity. Employment and prevailing wage levels are indicative of what local resident wage earners can afford for housing and have been used in the Teton County region to determine the need for affordable housing for the local workforce. This section presents general information on the nature of the Teton County economy, including employment and wage trends. EMPLOYMENT AND WAGES Employment data presented throughout this report comes primarily from two sources: the U.S. Bureau of Economic Analysis (BEA) and the U.S. Bureau of Labor Statistics (BLS). Total Employment reported by BEA includes wage and salary employment plus sole proprietors and partnerships. BEA data overstates total jobs because of the way partnerships and proprietors employment are counted. The second type of data, BLS covered employment (wage and salary employment covered by FICA), is more current and does not include sole proprietors. It is therefore typically 20 to 25 percent less than BEA estimates. The advantage of BLS data is that it is more current, lagging approximately three to four quarters while BEA data typically lags two years behind the current year. Both data sources have been used in this analysis as the two combined provide a good understanding of local economic conditions. It should be noted that the data is for jobs not employers or job holders. Due to the large number of part-time jobs in a resort economy, the number of jobs exceeds the number of employees. EPS used survey data to estimate the breakdown of job by type and the percent of full-time jobs, year-round part-time positions, and number of seasonal jobs. EMPLOYMENT GROWTH Total BEA employment for Teton County in 2004 was 23,987, as shown in Figure 1. The County has seen strong job growth over the 1990 to 2004 time period, with total employment growing by 10,000 jobs at an average annual rate of 3.9 percent from 1990 to 2004. Even during the national recession that began in 2001, total employment losses in Teton County were approximately 110 from 2001 to 2003, or less than one percent of the total. Teton County Housing Needs Assessment Final Report January 30, 2007 The data in the chart contrast the total number of jobs in a given year to the number of jobs created that year. The job growth has been fairly uniform, with approximately 700 jobs created annually since 1990. There were approximately 800 jobs created annually from 1990 to 1993; 450 jobs created from 1995 to 1997; and 1,100 jobs created per year in the latter part of the decade. Most recently, following the contraction that began in 2001, job growth has returned with 588 jobs, representing a 2.5 percent increase. Figure 1 Total Employment, Teton County, 1990-2004 Teton County Housing Needs Assessment 30,000 23,987 25,000 20,000 15,000   588 10,000 418 5,000 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Source: US Bureau of Economic Analysis, Economic & Planning Systems ECONOMIC BASE The Teton County economy is a resort-based economy with large concentration of jobs in Construction, Retail Trade, and Accommodations. As shown in Table 1, Teton County has a large presence of these sectors accounting for 46 percent of total employment. These sectors include Construction with approximately 2,665 jobs (11.2 percent of the total); Retail Trade with 2,282 jobs (9.6 percent); and Accommodation and Food Services with 5,898 jobs (24.7 percent). 3,000 2,500 2,000 1,500 1,000 500 0 -500 Teton County Housing Needs Assessment Final Report January 30, 2007 There is some data suggesting the economy is diversifying, as evidenced by job growth in Professional and Technical Services (including architects, engineers, lawyers, computer services, and other professional-type services) with 1,680 jobs (7.0 percent). The Administrative Services sector includes jobs that are typically contracted out by other businesses such as clerical services, personnel services, security, cleaning, and waste disposal. This sector has approximately 1,100 jobs (4.7 percent). Finance and Insurance account for almost 1,000 jobs (4.1 percent). However, much of this diversification is still related to resort and real estate sectors. For example, employment in architectural and engineering is oriented toward second home development. Government (local and federal) accounts for almost 10 percent of total employment with 2,200 jobs. These employment levels are in balance with statewide averages including Teton County government, U.S. Forest Service, U.S. Fish and Wildlife, and the Wyoming State Department of Fish and Wildlife. Table 1 Total Employment by Industry, Teton County, 2004 Teton County Housing Needs Assessment 2004 % NAICS Sector 2004Total Forestry, fishing, related activities (D) (D) Mining (D) (D)
(D) Manufacturing 243 1.0% (D) Transportation and warehousing 451 1.9% Information 376 1.6% Finance and insurance 970 4.1% Real estate and rental and leasing 1,950 8.2% Professional and technical services 1,680 7.0% Management of companies and enterprises 87 0.4% Administrative and waste services 1,117 4.7% Educational services 252 1.1% Health care and social assistance 901 3.8% Arts, entertainment, and recreation 1024 4.3%  Other services, except public administration 1,190 5.0% 9.3% Government and government enterprises 2,209 Total Non-Farm Employment 23,837100.0% Note: (D) indicates data suppressed for confidentiality. Source: US Bureau of Economic Analysis, Economic & Planning Systems H:\15819-Teton County Housing Authority\Models\Demog\[15819-Empl.xls]NAICS 20 Teton County Housing Needs Assessment Final Report January 30, 2007 From 1990 to 2000, industries were classified under the Standard Industrial Classification system (SIC). Beginning in 2001, industries were reclassified under the North American Industrial Classification System (NAICS). This reclassification made time series analyses difficult. However, the BLS has recently released a new dataset of wage and salary employment under the NAICS classification that covers 1990 to 2005. The advantage of using the BLS data is that the trends over the past 15 years can be analyzed. It is recognized that BLS data report fewer jobs than BEA data (about 75 percent of the total), as it captures only wage and salary positions. This study relies on BEA data when evaluating total employment and BLS data when evaluating trends. While seasonal employment remains a significant part of Teton County’s economic base, there has been growth in year-round service and professional service jobs. Table 2 shows wage and salary jobs (Bureau of Labor Statistics) by sector in 1990 and 2005 by the percent of total jobs, the change in percent of total, the total change, and the share of total job growth for each sector. The “share of change” column describes how the economy has change since 1990 and shows the percent of the total change in jobs that each industry sector contributed. Teton County Housing Needs Assessment Final Report January 30, 2007 As shown, Finance and Insurance accounted for 4.4 percent of total job growth from 1990 to 2005. Professional and Technical Services (e.g. architects, engineers, lawyers, and accountants) was 7.1 percent of job growth. Growth in Administrative and Waste Services (largely business to business services) contributed 7.4 percent of total job growth. Health Care and Social Assistance had significant growth, with an increase of 379 jobs, or 5.5 percent of the increase. Government accounted for 8.6 percent of wage and salary job growth. Together, the industries highlighted in Table 2 accounted for 37 percent of new jobs. Accommodations and Food Services accounts for 48.5 percent of new jobs, which suggests that Teton County continues to have a strong presence of resort-based seasonal jobs. There was also significant growth in non-resort oriented sectors that shows that Teton County is also becoming more diverse with a stronger year-round employment base. Table 2 Wage and Salary Employment by Industry Sector, Teton County, 1990-2005 Teton County Housing Needs Assessment
Agriculture ---57 ---------------Mining ---4 ---0.0% ---------Utilities ---------------------Construction & Construction Trades 1,139 2,116 11.0% 12.3% 1.2% 977 14.1% Manufacturing ---210 ---1.2% ---------Wholesale Trade ---------------------Retail Trade 1,252 1,901 12.1% 11.0% -1.1% 649 9.4% Transportation and Warehousing 216 347 2.1% 2.0% -0.1% 131 1.9% Information 179 252 1.7% 1.5% -0.3% 73 1.1% Finance and Insurance 165 470 1.6% 2.7% 1.1% 305 4.4% Real Estate, Rental, and Leasing 200 392 1.9% 2.3% 0.3% 192 2.8%Professional and Technical Services 317 812 3.1% 4.7% 1.6% 495 7.1%
Source: Bureau of Labor Statistics; Economic & Planning Systems H:\15819-Teton County Housing Authority\Models\Demog\[15819-Lrg Sector Emp.xls]Sheet2 Teton County Housing Needs Assessment Final Report January 30, 2007 Employment by SeasonIn Figure 2, employment by industry sector is aggregated into sectors representing types of establishments. Accommodations employment exhibits the most seasonality. As shown, there are approximately 5,500 jobs in Accommodations during the summer peak. In November, Accommodations drops to 2,600, which is half of the July peak. Restaurant and bar (eating and drinking) employment also fluctuates considerably from approximately 1,100 jobs in November to just over 2,000 jobs during the summer months. Retail and office type employment show much less seasonality, and service employment is nearly constant at approximately 500 to 600 jobs throughout the year. While there is still seasonality in tourist and resort-related sectors, Teton County has a significant number of year-round jobs that serve the community. Figure 2 Employment by Month and Establishment Type, 2005 Teton County Housing Needs Assessment  January February March April May June July August September October November December  Accommodations Office Retail Restaurant/Bar Service Commercial Amusement/Outdoor Rec. Source: Bureau of Labor Statistics; Economic & Planning Systems Teton County Housing Needs Assessment Final Report January 30, 2007 The magnitude of the summer peak has diminished over the 1990 to 2005 time period, as shown in Figure 3. Using the average annual number of jobs as the benchmark (100%), in 1990 the number of jobs by month fluctuated from about 80 percent of the average in the fall months to about 135 percent of the average in the summer months. In 2005, the summer peak declined to 120 percent of the annual average, while the shoulder months increased to about 90 percent of the average. This stabilization reflects the increase in year-round service and professional service jobs, indicating some diversification in the County’s economic base. Figure 3 Total Employment by Month as a Percentage of Average Annual Employment (100%) Teton County Housing Needs Assessment  January February March April May June July August September October November December Source: US Bureau of Labor Satistics; Economic & Planning Systems WagesThe average wage in the County is $31,500, which is equivalent to $15.75 per hour, as shown in Table 3. The data in the table are divided and those falling below the average are shaded. As shown in the right hand column, 60 percent of jobs (for which wage data was available) have wages less than the County average of $15.75. Accommodations and Food Services, the largest sector with 33 percent of wage and salary employment, is $20,200 annually. Retail is 11.3 percent of wage and salary employment, with average wages of $26,300. Average construction wages are $36,100 per year. Professional and Technical Services, Finance and Insurance, and Management of Companies and Enterprises have wages over $50,000 but only account for 8 percent of all jobs. Teton County Housing Needs Assessment Final Report January 30, 2007 Management of Companies and Enterprises includes businesses such as holding companies that invest in other companies, or hold securities in other companies for the purpose of owning a controlling interest or influencing management decisions. This sector is very small in Teton County, but has very high average wages of more than $200,000 per year. However, the data could reflect a small number of very highly paid executives that would skew wages upward. It can be inferred that these organizations in Teton County are handling businesses with The local economy is strong, with anthe majority of their operations outside average growth of 700 jobs per year Teton County or Wyoming. This suggests since 1990. This economic growth isthat individuals operating these businesses likely to continue and will drive thecan function independently from the local housing need.Teton County economy. Table 3 Average Annual Wage by Industry, Teton County, 2004 Teton County Housing Needs Assessment
1 Based on 2000 hours per year; 2080 hours minus 80 hours (2 weeks) for time off. Source: Bureau of Labor Statistics; Economic & Planning Systems H:\15819-Teton County Housing Authority\Models\Demog\[15819-Lrg Sector Emp.xls]Sheet2
Teton County Housing Needs Assessment Final Report January 30, 2007 LOCAL ECONOMIC DRIVERS The economic base analysis presented in the previous sections provided a high level overview of the Teton County economy. This section provides more detail on economic drivers unique to Teton County, including national park visitation trends, skier visits at Jackson Hole, and air traffic at the Jackson Hole Airport. NATIONAL PARK VISITATION AND SKI AREA VISITATION Grand Teton and Yellowstone National Parks are major destinations in the Teton County region. In 2005, Grand Teton attracted 2.5 million visitors and Yellowstone attracted 2.8 million, for a total of 5.3 million visitors, as shown in Table 4. Combined visitation peaked in 1998 at 5.9 million after growing by 5.8 percent per year from 1990 to 1995. Since 1998, visitation has been declining gradually at -0.5 to -1.5 percent per year. Despite declining visitation, the parks remain very significant as regional economic drivers. With one of the largest vertical drops in North America, 400 to 500 inches of natural snow per year, and legendary expert terrain, the Jackson Hole Ski Area is an important part of the Teton County region’s identity. While many major western ski resorts are seeing slow to flat growth in skier visits, Jackson Hole skier visits have been increasing steadily since 1990, as shown in Table 4. From 1990 to 1995, skier visits grew at a rate of 3.1 percent per year, and 2.9 percent per year from 1995 to 2000. Over the last five years, growth in skier visits increased to 4.5 percent per year, which is a strong growth rate for the industry. While the ski area growth has been significant, the ski area visits are less than 20 percent of Grand Teton National Park total visitations. Teton County Housing Needs Assessment Final Report January 30, 2007 Table 4 Annual Visits to National Parks and Ski Visits, 1990-2005 Teton County Housing Needs Assessment National Park Visits Year Grand Teton Yellowstone Total
Ski Visits Source: US National Park Service; US Forest Service; Economic & Planning Systems H:\15819-Teton County Housing Authority\Data\[15819-NPS, Ski, Enplanement.xls]NPS & Ski Teton County Housing Needs Assessment Final Report January 30, 2007 JACKSON HOLE AIRPORT The Jackson Hole Airport provides national access to and from the Teton County region. In 2005, there were 250,000 commercial jet passengers. There was a surge in the growth in commercial passengers from 2000 to 2005. As shown in Table 5, passenger growth was flat from 1995 to 2000. But from 2000 to 2005, the number of passengers grew from 182,000 to 250,000, an increase of 37 percent or 6.6 percent per year. Private jet service has shown even stronger growth. It grew from 6,300 in 2000 to almost 10,000 in 2005. For 2005, the data translate to almost 30 private planes per day. (The number of individuals on each plane is not tracked.) From 2000 to 2005, jet service increased by 59 percent or 9.7 percent per year. Based on data from the airport, travel via the airport is increasing substantially but is not generating traditional national park tourists. The substantially higher growth in private air service is an indication of increasing wealth of guests, locals, and part-time residents. Table 5 Annual Enplanements Jackson Hole Airport, 1995-2005 Teton County Housing Needs Assessment Commercial Jet Private Year Passengers Jets 1995 181,078 ---1996 180,120 ---1997 191,057 ---1998 199,693 ---1999 173,351 ---2000 182,013 6,279 2001 176,763 7,525 2002 190,416 7,925 2003 217,729 7,905 2004 215,602 9,121 2005 250,165 9,982 Change 1995-2000 Number 935 ---Ann. # 187 ---Ann. % 0.1% --- Change 2000-2005 Number 68,152 3,703 Ann. # 13,630 741 Ann. % 6.6% 9.7% Total % Change 37.4% 59.0%Source: Jackson Hole Airport Administration; Economic & Planning Systems H:\15819-Teton County Housing Authority\Data\[15819-Visitation.xls]Emplayment Data Teton County Housing Needs Assessment Final Report January 30, 2007 The reduction in annual park visitation and the increase in airport activity should be contrasted against previously discussed data that show growth of 3,363 jobs in the Accommodations and Food Services from 1990 to 2005. This sector accounted for nearly half of all job growth (see Table 2). The report also identifies an overall trend of greater year-round employment with smaller seasonal spikes (see Figure 4). Although a detailed review of the NAICS data did not identify causes for these multi-directional trends, interviews with local employers provide insight. In general, local accommodations growth has been with upper-end lodges that require more staff per room and more year-round staff per facility. Some lower-end lodges have closed, which may reflect the decline in traditional park visitation. While not quantified, the expansion of accommodations employment, notwithstanding lower visitation, suggests a shift in visitor profile that mirrors the trends shown in airport activity. The newer visitor, whether a part-time resident who owns a home or a short-term guest who stays in a hotel, generally generates more jobs to address the higher level of expected service. CORE COMMUNITY SERVING JOBS This section takes a closer look at jobs in Teton County to illustrate that there is a core of year-round jobs that are necessary to serve the community. These are largely full-time year-round jobs held by locals. In Table 6 a number of industry sectors are identified which are considered to be traditional, relatively stable, core community serving jobs. These jobs consist of banking, real estate, architects, engineers, lawyers, accountants, business to business services, and personal services. These are the types of jobs and industries that facilitate the day to day functioning of a community and serve the needs of residents and visitors. Some of these sectors have shown significant growth over the past 15 years. From 1990 to 2000, Professional, Scientific, and Technical Services more than doubled from 334 jobs to 752 jobs, growing to 812 by 2005. This sector includes professionals such as engineers, architects, accountants, and other professionals. From 2000 to 2005, this sector was 7.4 percent of total job growth. From 2000 to 2005, the largest growth was in Banks and Credit Union type jobs (NAICS 522), which accounted for 14 percent of wage and salary job growth, increasing by 117 jobs. In total, the ‘core service’ sectors identified in Table 6 accounted for 46 percent of new jobs from 2000 to 2005; therefore almost half of the new jobs being created in Teton County are not based on tourism or accommodations.
1 North American Industrial Classification System 2 A change greater than 100% indicates that gains in this industry were offset by losses in other industries. Source: US Bureau of Labor Statistics; Economic & Planning Systems H:\15819-Teton County Housing Authority\Models\Demog\[15819-Employment (3-Dig).xls]Sheet2 30 Teton County Housing Needs Assessment Final Report January 30, 2007 WAGES AND HOUSING COSTS In most housing markets, there is a correlation between wages and housing prices, since wages determine household income and what a household or family can afford to pay for housing. In markets with a large percentage of outside buyers, home prices become decoupled from local wages and household income. In Table 7, the average (mean) price of a single family home in Teton County is Single family home prices have compared to the average local wage. In increased 79 percent since 1999. The 2005, the average price of a single family average wage has only increased by home was $1.2 million; the average wage 22 percent. The disparity between was only $33,000. Assuming a two worker the growth in wages and housing household, the average price is 19 times prices indicates that the household income, or more than six times the normal affordability gap continues to grow. ratio of housing price to household income. (Note that the average wage of $33,000 is not the same as the average household income for Teton County, which is approximately $95,000 because there is often more than one earner per household, and a few very high income households can skew the average household income upward.) Single family home prices have increased 79 percent since 1999. The average wage has only increased by 22 percent. The disparity between the growth in wages and housing prices indicates that the household affordability gap continues to grow. Table 7 Ratio of Housing Prices to Wages, Teton County, 1999–2005 Teton County Housing Needs Assessment
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Wholesale trade (D) 
Utilities (D)