In some areas demand from tens of thousands of new high-tech jobs has pushed housing prices through the roof. Those earning lower wages become cost-burdened, or severely cost-burdened renter households.
Wages in an area may be chronically low because of the nature of available jobs. If the area is in demand as a place for seniors to retire or for families to purchase a second home, real estate values and rents will be high. Renter families in that community will become cost-burdened, or severely cost-burdened renter households. In an extreme situation there may be no rentals at all that are affordable to persons earning 60-80% of area median income.
Yachats, Oregon is a regional tourist destination due to the area’s natural beauty of forest meeting ocean, with the draw of beaches, hiking, shops, restaurants, and motels, and its quirky village ambience. The supply of available homes is limited. About 120 homes are vacation rentals and a like number are second homes. Available jobs at local motels, restaurants, shops, and vacation rentals pay low wages. That combination has made dwellings for year-round rental scarce and pushed almost all local workers to the cost burdened or severely cost burdened renter household categories, if they can find rental housing at all. There simply is not an adequate supply of available safe, decent rental housing in Yachats that is affordable to local workers.
Our Fisterra Gardens Townhomes project (21 units) was completed and 100% occupied in May 2019. The waiting list ballooned to 100 names. Two years later, the waiting list remains at 100 names for 21 occupied units. Only 8 units have turned over to new tenants since original occupancy.