DEEDED INTEREST

No matter how hard we fight it, our collective bill has come due

The Aspen Times | Published on July 2, 2023 | View the original article here →

I had a call with a broker at my firm a couple weeks back that reminded me how contrary circumstances can be in just 30 miles of old rail corridor now known as Colorado Highway 82. It framed an issue that’s been a part of the local conversation for decades in our mountain towns. And one that’s increasingly problematic and prescient since a little bug from Wuhan propelled the cost of homes in places like ours beyond what even the experts could imagine.

The conversation with my colleague took place shortly after we had worked together to put a 1970s-era home under contract. The modest 3 bed, 2 bath home is in original condition and sits on a modest midvalley lot near Catherine Store. It went on market just shy of $800,000 and within three days it logged nearly 40 showings. In the end, the elderly owners received over a dozen offers for a home measuring less than 1,500 square feet that will require another $50,000 for new carpet, paint, and other necessary repairs.

This summer is proving once again how much demand there is for the elixir that is the mountain lifestyle. After a significant slowdown the last year due to higher interest rates and buyers waiting in hope prices might soften, the recent shift in activity is not just palpable but measurable: Since June 1, more than 50 homes under contract from Aspen to Carbondale, and nearly half of those within days of coming on. Sellers remain in command and delighted.

But as more end-users and investors come in, those who have lived and worked here for years are facing an increasingly impossible situation. As ridiculous as $800,000 is for a small home in a C+ location that needs more than a little TLC, every flavor of buyer came clamoring, including all cash-investor types, of course, pitted against those already stretching the limits of their budget in need of a loan. Far from an uncommon scenario, but as the listing broker recounted events, I was struck by the desperation, the disappointment, and the anger she described from those who didn’t win the contract my clients ended up securing.

The two of us speculated aloud about the impact missing this one home might have on those who weren’t chosen. It’s a sad fact there aren’t that many single family homes under $1 million in the midvalley these days. We wondered how many of those who competed for this one had lost previous bidding wars, if other options would appear for them, and what might happen when they finally threw in the towel.

But the truth is we do know, and it’s a saga unfolding not just here in our valley, but so in Telluride, Crested Butte, and Steamboat Springs. We are losing our workforce — the glue and the engine. And as the door to our once inclusive and relatively-affordable community closes on them, the ramifications reverberate from the trailer park in Rifle to the mansions on Red Mountain.

It’s likely many of those who lost out on the home on Old 82 are part of the machinery critical to our local economy — maybe a teacher, a firefighter, a nurse, housekeeper, landscaper, or tradesman. Earlier this year, two local physicians, both making six figures each, left their practice, as they were unable to afford a home near Aspen as required that they live near the hospital.

In past few months, more than a little ink has been spilled in local papers over the topic of property taxes. Valuations valley-wide are up by as much as 50,% 70%, 90% from just two years ago. Over the past weeks, a partner and I helped clients prepare and submit appeals arguing that the assessor’s findings were inaccurate. In some cases the errors are glaring and worthy of taking a stand. But to be honest, other submissions are a stretch, a chance bet, but one we are asked to pursue as even a small tic on value can result in thousands of dollars in annual savings.

In light of the plight of those who might not yet have a property tax burden but would gladly accept one in return for owning their own slice of the American pie, it occurred to me arguing what we owe this time around isn’t in our collective best interest and frankly is selfish. Those of us with higher taxes are swimming in equity. I think it important to remember these levies pay for health and human services, schools and colleges, road and bridges, water conservation, and yes, in some districts, affordable and subsidized housing.

If you’ll allow me a point of personal privilege: After we cut that check, it might not be a bad idea to stroke another for our neighbors behind the curtain who might rely on local charitable organizations to bridge the gap and make ends meet, so they can continue living and contributing to the same stretch of scenic highway we all inhabit. And perhaps a commitment fit for a weekend we all celebrate our freedom and good fortune.