CO Short term rental elections 20% tax rates approved, what are the results and what does this mean to you and Colorado ski real estate?
Regardless of party affiliation, this has been a big voting season for Colorado real estate…
Travel Crested Butte put up a social media post last weekend that messaged Crested Butte was not all sunshine and rainbows. “As beautiful and breathtaking as Crested Butte is, the community you love to visit is hurting,” This is not your typical warm and fuzzy marketing 😊 What does this mean for real estate?
If you have visited or live in any Colorado mountain town, if feels like all the sudden the city is like main street at Disneyworld’s Magic Kingdom that has been overrun with tourists. This is not unique to Crested Butte; for example, Chaffee county (Salida) recently pulled the plug on a large music festival due to the impacts from a large number of tourists. There are three primary economic drivers that has led to unprecedented issues in resort communities. These issues have always lingered below the surface, but Covid has amplified them.
A lack of housing, increases in demand, and nightly rentals have collided to make the perfect storm from Telluride to Steamboat and everywhere in between. Residents and business owners are uniting as locals are pushed out of the communities and businesses cannot hire workers to meet the increased demand from visitors. This summer was a breaking point in many communities. There are three primary steps communities are taking:
Unfortunately even with these measures, I don’t see a huge let up in tourism anytime soon. For example, winter tourism will likely increase as Vail resorts dropped the epic pass price 20%. The Salt Lake Tribune stated that “ Vail Resorts has opened the floodgates with the hope skiers and snowboarders who skipped last season with concerns about the coronavirus will come pouring back in 2021-22.
The company that owns the largest collection of ski resorts in North America on Wednesday announced a 20% price reduction for all its Epic Pass products. Depending on the version, the Epic Pass provides access to all 34 of Vail’s North American resorts, plus three in Australia and limited days at numerous partner resorts.”
As Colorado mountain communities become year-round with permanent residents. The tensions with tourism will only amplify. Restrictions on nightly rentals, reductions in programs to attract visitors, and elimination of festivals/events will only continue as full-time residents demand action and are the only ones that get to vote in local elections. Fortunately, as mountain economies have diversified with full time residents, the impact on real estate should be limited unless you own a nightly rental.
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Written by Glen Weinberg, COO/ VP Fairview Commercial Lending. Glen has been published as an expert in hard money lending, real estate valuation, financing, and various other real estate topics in Bloomberg, Businessweek ,the Colorado Real Estate Journal, National Association of Realtors Magazine, The Real Deal real estate news, the CO Biz Magazine, The Denver Post, The Scotsman mortgage broker guide, Mortgage Professional America and various other national publications.
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