The Mountain Town Housing Revolution: Can Breckenridge’s Model Be Replicated?

Breckenridge, Colorado, is becoming a case study in how to tackle the increasingly dire housing crisis facing mountain towns across the American West. With nearly 75% of its full-time residences now reserved for local workers, the town is demonstrating a commitment to preserving community in the face of soaring property values. But can this success be replicated elsewhere?

The Perfect Storm: Tourism, Remote Work, and Rising Prices

The challenges facing Breckenridge aren’t unique. Across the West, towns like Jackson, Wyoming, and Whitefish, Montana, are grappling with similar issues. A Harvard University study reveals that home prices in rural vacation areas jumped over 50% between 2020 and 2023. This surge is fueled by a combination of factors: increased tourism, the influx of remote workers, and a limited housing supply constrained by geography.

The result? Essential workers – emergency medical technicians like Jake Carter, teachers, and service industry employees – are being priced out of the communities they serve. This threatens not only the local economy but also the exceptionally fabric of these towns.

Breckenridge’s Multi-Pronged Approach

Breckenridge hasn’t relied on a single solution. Instead, it’s implemented a comprehensive strategy built on several key pillars:

• Land Banking: Proactively purchasing land for future workforce housing development.
• Deed Restrictions: Requiring that properties remain occupied by local workers, limiting resale to those who meet workforce criteria.
• Buy Downs: Purchasing properties as they come on the market, adding deed restrictions, and reselling them to locals at discounted rates.
• Financial Incentives: Programs like “Housing Helps,” which provides down payment assistance in exchange for deed restrictions and limitations on property appreciation.
• Strategic Annexation: Partnering with developers to secure deed restrictions on a significant percentage of new units in exchange for town services.

The town’s $50 million housing plan, approved in 2022, has already yielded over 400 new deed-restricted units, with another 300 expected in the next four years. Approximately 1,700 of the 2,300 resident-occupied homes in Breckenridge are now deed-restricted.

The “Housing Helps” Program: A Closer Look

The “Housing Helps” program is a particularly innovative approach. It incentivizes homeowners, buyers, and local businesses to add deed restrictions to properties, offering between 15% and 25% of the property’s value in return. Funds can be used for down payments, repairs, or other expenses. The program saw such high demand in 2024 that the town exhausted its entire budget by mid-August, prompting a $600,000 budget increase.

Challenges and Limitations

Breckenridge’s success isn’t without its caveats. The town’s financial resources, bolstered by a real estate transaction tax, are not universally available. Even with significant investment, affordability remains a concern. A new three-bedroom home in a recent development is expected to cost $780,000, highlighting the ongoing challenge of providing truly affordable housing in a high-cost market.

Converting short-term rentals to long-term housing also presents difficulties. While Breckenridge has capped new short-term rental licenses, a previous pilot program aimed at incentivizing conversions ultimately fizzled out.

The town still estimates a need for approximately 1,200 additional housing units to meet the demands of its workforce.

Lessons for Other Mountain Towns

According to Margaret Bowes, executive director of the Colorado Association of Ski Towns, Breckenridge’s success boils down to prioritization and investment. “They have made (workforce housing) a priority, and they put their money where their mouth is,” she said.

Collaboration is also key. Breckenridge’s housing director, Laurie Best, actively collaborates with other towns, like Aspen, which has a long-standing workforce housing program, to share best practices.

Preserving existing housing stock through deed restrictions and buy-downs is crucial, particularly in areas where land is limited.

FAQ: Breckenridge’s Housing Initiatives

• What is “Housing Helps”? A program offering financial incentives to property owners who add deed restrictions to their properties, ensuring they are occupied by local workers.
• What percentage of Breckenridge’s housing is deed-restricted? Approximately 75% of full-time residences are deed-restricted for the local workforce.
• How is Breckenridge funding its housing initiatives? Through a real estate transaction tax, sales taxes, and a short-term rental fee.
• Is Breckenridge’s model replicable in other towns? While challenging, the core principles of prioritization, investment, and collaboration can be adapted to suit different local contexts.

Pro Tip: Don’t underestimate the power of public-private partnerships. Engaging local businesses and developers can unlock additional resources and expertise.

As Breckenridge continues to refine its approach, it offers a valuable blueprint for other mountain towns striving to maintain their communities in the face of unprecedented housing pressures. The future of these towns may depend on their willingness to prioritize the needs of those who live and work there.

Did you know? Breckenridge estimates that most local working households are now living in some form of publicly assisted housing.

Explore further: Read more about workforce housing challenges in the West at High Country News.