Tahoe’s workforce is getting squeezed out of the housing market. There’s a plan to help

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The Tahoe Basin is in a housing crunch. And the region’s workers are feeling the squeeze.

The median home price in the north Tahoe and Truckee areas has risen 103% since last spring and now stands at more than $1.3 million, according to new data from Placer County’s Community Development Resource Agency.

And the majority of homes in the region are second homes, long-term rentals or vacation rentals. Just 12% of housing in the region is occupied by an owner.

“The housing crisis got even more exacerbated by COVID,” said Shawna Purvines, deputy director of the County’s Community Development Resource Agency. “It was a crisis before and I’m not even sure what to call it now.”

And the housing crisis is spilling over into the region’s local economy, making it extremely difficult for employers in the area to recruit and retain employees.

Cindy Gustafson, a county supervisor and long-time resident of the Tahoe area, said the current median salary of $86,300 for a family of four is not nearly enough to afford a home in the area. The affordability gap in the Tahoe region is wider than the Bay Area, she said.

Local businesses cannot find workers to serve the influx of tourists every year. Some are forced to close their doors for a few days a week to give the few employees they do have a break, she said.

Purvines said Placer County has looked for sites to build more affordable housing for years to help alleviate the needs of the region. And in October 2019, it found a spot: an 11-acre plot on Highway 28, one of the main thoroughfares running into Tahoe City.

The lot had been previously billed as an ideal spot for senior housing, she said, but it languished on the market for years. The county, with the help of the Tahoe Truckee Airport District, one of the biggest employers in the area, bought the site for $3.4 million.

The site, known as Dollar Creek Crossing, is close to transit routes and trails, cutting down on commute times and making it a desirable location for employees of Tahoe City businesses.

“With the housing needs that we have, this was an opportune site to jump in on and work with the developer to get some much-needed housing in the area,” Purvines said. “It is an important project.”

The project is still in the planning phases, Purvines said, and is in the process of gathering community input. So far, there appears to be widespread support.

“I think there’s a lot of excitement,” Purvines said.

At this point, the site is zoned for 15 units per acre, allowing a potential maximum of 171 units, according to documents from a March 30 Board of Supervisors meeting. The site will likely include homes for sale as well as rentals, after community members voiced support for opportunities for home ownership.

“We want to see a variety of housing types: townhomes, fourplexes, to more traditional apartments,” she said. “That is consistent with the county’s goal.”

The project will also include some commercial and retail space after community surveys indicated there was a demand for “newer, contemporary facilities,” according to county documents.

Construction is expected to begin next year.

“I always tell people I just want the group coming behind me to have what I got to have,” Gustafson said. “I moved here and I was able to save money and buy a home with my family ... and there’s no hope for my son and his wife, and my other boys, to buy here and stay here, and it’s only right that we try to find a way to allow them to be here too.”