Construction in the Yampa Valley is Booming

Take a quick drive through Steamboat Springs and immediately you will know that construction in the Yampa Valley is booming. By July this year, the Routt County Planning Department had issued 355 building permits for Steamboat Springs and another 271 for the rest of Routt County, including Yampa, Hayden and Oak Creek. Last year at the same time, those numbers were 253 for Steamboat and 194 for Routt County. And 2020 was up significantly from 2019 when there were just 313 permits issued.

The Construction Industry is Facing Ongoing Struggles

Despite the obvious demand, the construction industry faces an ongoing struggle to obtain building supplies and a strong labor force. “Some trades are definitely struggling,” said Jeff Gerber, Principal of Architecture at Gerber Berend Design Build in Steamboat. “Locally our housing shortage is having a big impact on the availability of subcontractors.”

Longer build times, increased pricing and a shortage of materials and appliances are all indicators of the current economic climate. The pandemic sparked an unexpected surge in home remodeling and a hot housing market and factories which temporarily closed now must play catch up.

Tarn Dickerson, President of Steamboat-based Sustainable Building Solutions, always builds properties at 20% above the energy code, a standard he is unwilling to forgo even in the current supply crisis. “Everything is just taking longer now. What might have been a 10-minute call can now take half a day.” Products that once took 4-6 weeks until delivery can now be delayed for 3-5 months. “You have to be able to pivot and amend plans to accommodate the current climate, but you don’t want to lower the quality of the end product,” he said.

The Impact of COVID

COVID impacted the needs of homeowners, resulting in subtle design shifts. Gerber noted the key components he is asked to incorporate center around multi-use and multi-generational spaces. “I’ve been doing a lot of bunk rooms, more private secondary spaces where people can take a business call or get away from the buzz of the great room area, home offices and covered outdoor spaces which can be heated.”

According to the National Association of Realtors, buyers purchasing multi-generational homes during the pandemic rose by 15%. Among the contributing factors were aging parents and concerns of isolation, young adults returning home and the financial benefits of combining resources.

Many local architects and builders are now booking years out with the reality of entry to a new build property potentially being a long wait. “I see this leading to decisions about whether to buy and renovate or wait,” Gerber said.