Costly housing deters job hunters

Not too long ago, Jobs Plus used a three-pronged approach for pitching Kootenai County’s merits to companies contemplating moving here: Quality of life, available workers and affordable housing.

North Idaho’s pine-covered hills and deep-water lakes haven’t changed, but the labor market and housing prices have. With unemployment rates at a record-low 2.5 percent and $130,000 homes a distant memory, the area is less attractive to firms thinking of moving to the area.

That’s why Jobs Plus – a nonprofit economic development agency – is participating in community discussions about affordable housing.

“Housing either makes it easier or more difficult as we try to recruit professional people to the area,” said Steve Griffitts, Jobs Plus’ president. “Affordable housing is an important driver for economic development and prosperity in the county.”

Griffitts is one of more than 100 people who attended workforce housing workshops this summer put on by a group called Kootenai Perspectives. The coalition of business and civic leaders is looking for ways to ensure that families with incomes of $30,000 to $50,000 can afford to live and buy homes here.

Teachers, firefighters, restaurant workers and welders are wage-earners who could easily fall into that income range.

Anecdotal evidence suggests a link between high housing costs and a scarcity of workers. Local employers say outside job applicants end up turning down offers because they can’t find a house they like in their price range. Steep housing costs may also prevent young workers from moving into the county.

“I even heard about a young, graduating doctor having trouble finding housing he can afford,” said Mike Kennedy, a Coeur d’Alene city council member who is chairing Kootenai Perspective’s housing subcommittee.

Until 2003, it wasn’t hard to buy a three-bedroom, two-bath home for $130,000 or less. Though home prices have moderated a bit in recent months, the median sales price for Kootenai County homes remains above $210,000, according to the Coeur d’Alene Multiple Listing Service. The median price is the midpoint – half the homes sell for more; half sell for less.

For families with a $41,000 annual income, a $210,000 home would be well beyond their means. Their income would qualify them for a mortgage on a house in the $135,000 price range.

Some workshop participants wondered if a housing market correction would solve the problem. “It’s not a long-term fix,” Kennedy said.

“We’re trying to keep a climate in which we have a diverse housing supply available for all levels of income, so we won’t fall into the same trap as Sun Valley or Ketchum,” Kennedy said. Those southern Idaho resort communities have long struggled with their labor force’s inability to afford housing.

Creating a local definition of affordable housing was a key part of the summer workshops. Kootenai Perspectives is focusing on middle income wage earners, Kennedy said.

The $30,000 to $50,000 income figure is based on Kootenai County’s median family income, which is just under $52,000. A clear definition is important, so elected officials having something concrete to refer to when developers pitch proposals under the “affordable housing” banner, Kennedy said.

Kootenai Perspectives has drafted seven goals for helping the community create affordable housing. Some are likely to be controversial, Kennedy said. One, for instance, includes creating zoning regulations that would encourage lower-cost housing. “Housing may need to be denser to make it affordable,” he said.

Workshop participants also discussed requiring developers build a certain percentage of their projects as “affordable housing.” However, that isn’t feasible, according to Kennedy. Sun Valley, Ketchum and McCall tried that approach, and ended up in court, he said.

Instead, Kootenai Perspectives has focused on developer incentives to build lower-cost homes. As employers, “it’s a topic for their work force as well,” he said.