These 10 charts sum up Fort Collins' housing affordability challenge - Coloradoan
Thomas Clayton
These 10 charts sum up Fort Collins' housing affordability challenge
Rebecca PowellA new report on the cost of housing in Fort Collins puts hard numbers to the pain many residents are feeling.
The typical home costs $300,000 more than what a median earner can afford.
About 58% of renters and 21% of homeowners are cost burdened by their housing, meaning they spend more than 30% of their incomes on rent/mortgages, taxes and utilities.
And Fort Collins will need to build about 7,000 housing units in the next decade — about 1,500 just to catch up and 5,500 more to keep up with trends.
Those are just some of the takeaways from the Housing Needs Assessment draft report compiled by Root Policy Research for the city of Fort Collins.
City Council members dug into the report at their March 10 work session. It will be used to help the city create a housing action plan. Both the assessment and the action plan are required by state legislation passed in 2024.
At the same meeting, council also began working on a strategy to deploy around $5 million of leftover funds for affordable housing, along with the $10 million more expected to come in the next decade.
That money comes from sales tax revenue through the city's quarter-cent capital improvement tax, some of which is earmarked for an affordable housing fund.
Council members told city staff they want to put that money to use sooner rather than later.
"We need a lot of units right now," Mayor Emily Francis said. "We need 7,000 over 10 years, but we need 1,500 right now."
"I would be in favor of using those dollars to meet the need right now, instead of spreading it out over that decade," she said. "We could make the most impact with those dollars right now."
10 charts that tell the story of housing affordability in Fort Collins
1. Rents have plateaued in the past couple of years
The plateau is good news for renters. But, unfortunately, that's after a 30% increase over the prior five years, said Mollie Fitzpatrick, director of the housing market research firm Root Policy Research, in her presentation to council.
The vacancy rate remains tight, around 5% (rates below 10% indicate a tight rental market, according to Root's report).
2. Wage growth outpaced inflation from 2018 to 2023
Another positive sign in the report, but the bad news is that the cost of housing went up even more.
The average wage was up 27%. Still, rents were up 45% and home prices were up 70%.
3. New housing units aren't keeping up with the number of households and jobs
From 2010 to 2023, housing units grew by 25%, but the number of households grew 29% and the number of jobs grew 38%.
4. More than 58% of renters and 21% of homeowners in Fort Collins are cost burdened
Being cost burdened means someone spends more than 30% of their income on housing costs.
5. The city doesn't have enough rental units that are affordable for those making less than 50% of the area median income
There's a gap of about 6,300 units.
What is the area median income, you ask?
It's the midpoint of incomes in a particular area, with half making more and half making less.
In Larimer County, it ranges from around $89,000 for a single person to $137,000 for a family of five.
See the chart below for the 50% median income amounts.
6. There's been a decline in homeownership
Homeownership declined from 56% in 2010 to 52% in 2023.
When you drill down by income, the decline is even steeper. It's down 31 to 35 percentage points among those with incomes in the $50,000 to $100,000 range.
7. There isn't one industry where a single income earner can afford the typical home in Larimer County
It takes at least 1.5 incomes in some cases, but in most industries, two incomes still can't afford a typical home.
8. Even a household making area median income doesn't come close to being able to afford a typical home without being cost burdened
To be affordable, that home would need to cost half as much, around $300,000 rather than $600,000.
In fact, not even a household making 120% of AMI can afford a typical home. They need one that's more than $200,000 cheaper, according to Root's analysis.
9. About 1,500 housing units are needed to alleviate overcrowding and soften vacancy rates now
And in the next 10 years, more than 7,000 housing units will need to be built to keep up with the demand, and not just for people making less than area median income. More than 1,500 housing units will be needed for those making more than 150% of AMI.
10. Median rent in Fort Collins is $1,661, up 30% from 2018 to 2023
Timnath, Wellington and Windsor have seen even steeper increases.
11. This bonus chart is old news for anyone who's been paying attention
Typical home prices in Larimer County communities have been steeply rising since around 2013.
What can be done?
A survey by Root showed what respondents are willing to accept to help lower housing costs, whether that's allowing something different in their neighborhood or accepting tax changes.
City Council's top priority for its current term, arguably, is the one around promoting affordability and sustainable growth.
Specifically, council wants to focus on making development predictable, efficient and cost-effective, believing those are the levers it can use to influence costs.
Meanwhile, that affordable housing capital fund could be used for things like:
- Providing gap funding to affordable housing developers.
- Increasing fee waivers for affordable housing.
- Accelerating the deployment of land in the city's land bank.
- Participating in a program to build up a revolving loan program that would offer developers low-interest loans.
Of these options, council members said the gap funding and the waivers would allow for the fastest response.
Staff said they got the message.
"If I could sum it up in two words, it's speed matters," Chief Sustainability Officer Jacob Castillo said.
 | Tom Clayton Communication and Media Specialist, Public Affairs |
| Commissioners' Office 200 W Oak St, Fort Collins, 80522 | 2nd Floor W: (970) 498-7005 tcla...@larimer.org | www.larimer.org |