Supply, demand, and the private sector stepping up to address housing supply

Community: Housing is too expensive! There aren’t enough rentals! The private sector needs to step up!

Private sector: OK, we will build more housing. We’ll follow the deed restriction guidelines, and we’ll exceed the number of deed restrictions to help address the need.

Community: No, not that way! Not there! We’re not against housing, we’re just against that housing!

I’m old enough to remember some version of this narrative playing out in Gypsum (Spring Creek Village), Eagle (Hockett Gulch, Haymeadow), Edwards (6 West, Fox Hollow), and Vail (Middle Creek, Solar Vail). Even much-needed Habitat for Humanity projects have been victims of the “not here” narrative.

What else do all these housing developments have in common? They exceeded the local jurisdiction’s requirements for live-work deed restrictions. The other commonality between these housing developments is that they’ve been absorbed into the Eagle County housing mix, and we still have a significant housing shortage for locals.

Even in today’s polarized world, we (mostly) agree that there is a housing supply problem. Our local jurisdictions – every one of them – have been actively involved in helping to address this problem. Now, we need the private sector to step up and help. When they do step up, it is incumbent upon the public sector to accept the help by approving projects that exceed the requirements outlined in our land use criteria.

Let’s take a step back. In economics, supply and demand are basic concepts that describe the relationship between the quantity of a good or service that producers are willing to sell and the amount that consumers are eager to buy, respectively.

Supply is the amount of a product that the market can offer. The law of supply states that all else being equal, an increase in the price of a good or service will increase the quantity supplied.

Demand, conversely, represents how much of a product or service is desired. The law of demand posits that all else being equal, a lack of supply of a good or service will lead to a market need for said product.

The interaction between supply and demand determines the market equilibrium, where the quantity supplied equals the quantity demanded at a particular price. Why are rental rates so high in Eagle County? We have high demand and a severely limited supply.

How to address this? Embracing in-fill density is one way. In-fill density involves the development of vacant or underutilized parcels within existing urban areas. This approach offers several significant benefits for housing developments.

In-fill development helps to combat sprawl, preserving open spaces and agricultural land on the outskirts of our towns. By increasing housing density within business centers, we can create more walkable communities with better access to amenities and services, enhancing the quality of life for residents. Importantly, in-fill density is a sustainable approach to development that leverages existing resources, curtails sprawl, and enhances housing affordability.

Our local governments build land use codes and planning documents to guide the private sector on expectations. Private sector projects that meet and exceed these guidelines (such as West End, which exceeds the minimum requirement by over 112% with 65% deed restricted resident occupied and 10% deed restricted price capped rent), are located on transit routes, avoid sprawl, are in in-fill sites, and do it without public money should be supported.

We need more housing supply across the housing spectrum. We know every housing proposal will face opposition. Let’s be sure to approve the ones that exceed the requirements in our land use codes.

Chris Romer is president & CEO of Vail Valley Partnership, the regional chamber of commerce. Learn more at VailValleyPartnership.com