Steamboat Springs, Colorado, is facing a common challenge seen in many resort communities - the struggle to recruit staff due to high housing costs that exceed local incomes.
While home prices and rents have surged nationwide in the past year, the real estate market in affluent areas is on another level. The median listing price for available homes in Steamboat Springs is currently $2 million, as reported by Realtor.com. Median rent stands at around $4,000 per month according to Zillow.com. These steep prices make housing unaffordable for many, even those with above-average incomes.
City manager Gary Suiter mentioned to CBS MoneyWatch that the city government has had difficulties in hiring a human resources director, a high-level position with a six-figure salary to offer, NBC News reported.
"This is not just an isolated case. In these upscale resort towns, there are numerous positions at various levels within organizations that prove challenging to fill," Suiter explained.
Despite the city's population of 13,000, it has faced rejections from two candidates to whom job offers were extended.
"Having had two recruitments previously where candidates couldn't afford to live here," Suiter lamented. The salary for the position? A whopping $167,000 per year.
Comparatively, other job opportunities in the area offer significantly less, such as a listing for a rodeo maintenance worker, which can earn up to $29.62 per hour.
Enticing Incentives
Suiter emphasized his awareness of the escalating housing expenses in towns like Steamboat Springs and the resulting staffing challenges faced by local businesses. Affluent individuals invest millions in second homes in these regions, driving up housing prices, a trend that was magnified by the pandemic.
The ongoing struggle to fill the HR director position in the city "reflects the larger narrative unfolding in resort communities, a narrative that has persisted for quite some time," he elaborated. "Similar scenarios are unfolding in upscale areas."
The latest S&P CoreLogic Case-Shiller data reveals that home prices in the top 20 metro areas of the country surged by an average of 6.7% in 2023. Nationally, housing costs escalated by over 5% in the past year, rendering home ownership unattainable even for those with high incomes.
To sweeten the six-figure deal, Suiter mentioned that the city has included a negotiable signing bonus for the ideal candidate.
"A signing bonus will be offered within reason, if necessary to attract the most qualified candidate," he stated.
Unique Housing Solution
Providing accommodation for the city's approximately 300 government staff members, many of whom earn less than six figures annually, has proven challenging, Suiter explained. The city is currently constructing dormitory-style housing to address this issue.
Housing difficulties are prevalent "across all levels of the organization," Suiter emphasized. "It's not limited to management roles; even frontline positions are affected. Recruiting bus drivers has been particularly tough, especially during the pandemic due to the mask mandate."
The town's renowned ski resort offers up to 800 beds for staff members "at rates below the market average," as confirmed by a resort representative.
