Building affordable housing throughout the Wasatch Back could generate millions in community benefits, according to a new economic impact study commissioned by Mountainlands Community Housing Trust.
But county officials questioned if the analysis considered all sides — and costs — of construction.
Andrew Knudsen, managing principal with Economic & Planning Systems, the consulting firm that conducted the study using local, state and federal data, presented the information to the Council of Governments on Tuesday. The results indicate that developing affordable housing has a positive return on investment.
The study concludes there would be $58 million generated from a 100-unit affordable housing development. That’s a $585,125 return for every $100,000 of taxpayer dollars put into rentals and $400,000 of public investment into owned units.
There’s also great economic value, increased community benefit and reduced opportunity costs for investing in workforce housing.
“This deals with both a resort economy looking to address the needs of guests. It more importantly deals with a locals economy that’s looking to ensure that there’s teachers and there’s people on the other end of 911 for EMT, a fully staffed emergency response. There are many locally serving organizations that also benefit from housing,” Knudsen said.
Business booms
Upper-class communities like the Park City area are struggling to recruit and retain employees because so many workers are unable to pay their rent. Expanding the affordable housing inventory would reduce unfilled positions and increase household spending, as well as sales and property tax revenues, according to Knudsen.
Summit County could generate $43.1 million in economic value in one year if 173 full-time positions were filled.
“The cost of unfilled positions is very significant. We are hearing stories from some of our clients where restaurants are cutting back nights they are open from seven nights a week to five nights a week because they just can’t find the staff. Unfortunately, the rent doesn’t stop,” Knudsen said.
Household spending in the region would also increase by $4.2 million. Around $73,000 could be collected by local governments in sales tax revenues if an additional $1.7 million is spent in the Wasatch Back. Taxing entities could also receive $186,000 in property tax revenues each year based on a $450,000 valuation per unit.
Quality of life
Bringing in residents boosts the vitality of a community, according to the study. Investments in resident housing help reduce commute times and carbon emissions while adding funding for public school students and increasing volunteer hours.
The workforce in Summit County has increased by almost 48% since 2010, and commuters account for 70% of employment. Knudsen said this creates a “precarious” situation because the local business community is highly reliant on people coming in.
Less than half of the county’s workforce lives within its boundaries with more than 15,000 people commuting in.
Around $1 million in cost savings could be created if 66,000 annual commute hours were eliminated. The number was determined using locally generated distances and hours spent driving as well as the $18.80 per hour value of time, the federal standard.
Reducing the number of vehicle miles traveled per year by 3.3 million would also reduce the cost of greenhouse gas emissions on the environment by $75,000 annually.
The state of Utah would invest an additional $180,000 each year into Summit County and Wasatch County school districts if 40 new school-aged children joined. The study estimated there would be 0.4 school-aged children per 100 new households.
“This is important too when you think about how the capital costs within a school district are fairly fixed. These are all marginal costs that go directly to the bottom line in terms of teaching staff, para staff and programs benefiting essentially all of the students within the school district,” Knudsen said.
New households could bring $150,000 in community benefits, too. Utah is top in the country for volunteer labor, which is valued at $31.46 per hour.
Costs avoided
Knudsen warned there could be a cost for no action.
Wasatch Back communities would need to invest more money in parking and new hire training without additional workforce housing, according to the study. These costs could otherwise be avoided.
There would be $5.3 million needed to create parking solutions for 87 structured parking spaces and 43 surface parking spots. Additional lots would be required to accommodate a growing workforce made up of commuters.
Knudsen acknowledged some parking would be needed for new housing units, but he said local residents have a reduced need and they would be more likely to choose public transit.
The cost of turnover, training and lost productivity for 173 positions is estimated to cost businesses $4.1 million.
What’s left out?
Kamas Mayor Matt McCormick was critical of the study because only the potential revenue and cost savings were addressed. He wanted to see data on how much it would cost to provide water and sewer services as well as emergency medical services such as police, fire and ambulance.
Megan McKenna, a housing advocate with Mountainlands’ Housing Resource Center, argued there would be similar costs associated with building market-rate housing without bringing the same community benefit. She said the community is already feeling the impacts.
Oakley Mayor Zane Woolstenhulme understood the study to say the “juice is worth the squeeze” when it comes to putting in the work to build affordable or workforce housing.
Knudsen agreed. The study assumes “growth is going to happen in Summit County one way or the other.”
Summit County Councilor Roger Armstrong struggled with that idea. Local population overall decreased in 2022 and 2023, and he said officials have been trying to mitigate the impacts by limiting growth.
“I would like to see the other side. For every 100 units that we add, what does that add to the cost of running a city or county?” Armstrong questioned. “This is interesting data for a vanilla, plain-wrapped community. It’s not helpful for where we live with our particular economics.”
Still, other local leaders worried what would happen to the county’s culture without affordable housing.
Summit County households earning $75,000 or less have decreased by 17% since 2010, while those making $200,000 or more have gone up by almost 300%. More than half of residences in the Park City area are vacant or second homes.
Knudsen said there’s greater housing pressure on the community’s lowest earners, forcing them to pack up and leave, which erodes and changes the local fabric.
The full report is forthcoming. Mountainlands Community Housing Trust plans to present the information in Summit and Wasatch counties next month. The community is encouraged to participate in the conversation and share their ideas.