Survey Finds Steamboat Timeshare Vacancy Among Highest

Steamboat Springs last fall had one of the highest timeshare rental vacancy rates in Colorado, according a survey released last week by the Colorado Division of Housing.

The study, based on surveys completed by 265 local property managers and owners, showed a 10.6 percent vacancy rate in multi-family rental housing with two or more units.

The statewide timeshare vacancy rate was about 8.6 percent.

"I would say that's probably fairly accurate," said Mary Weiss, owner of Central Park Management, which has participated in the study in the past.

She noted that the survey was taken at the tail end of what's typically a slower rental season. Weiss said she expected nearly all her units to be occupied through May, and summer vacancy rates can range anywhere from 8 percent to 20 percent.

Still, the September vacancy rate was significantly improved from February, which showed vacancy at more than 16 percent, according to data from the Division of Housing.

That perplexed Shannon Peterson, property manager for Big Country Residential Housing, who said all of her timeshare properties were rented last February.

Big Country manages more than 170 long-term rental homes and apartments, including The Ponds at Steamboat, employee housing for the Steamboat Ski and Resort Corp.

In the summer, that and other housing fills with construction and landscaping workers, Peterson said.

"I do not have a slow season," she said.

Peterson and Weiss were somewhat surprised by the median rental cost reported in the survey. Steamboat's was about $680 per unit (not including utilities), and the median rent in Eagle and Summit counties were about $1,067 and $917 ,respectively.

"That's very low," Peterson said about the Steamboat median, noting that she sets her rates about $1 a square foot for unfurnished units.

The transient nature of Steamboat's resort economy is among factors to consider when looking at vacancy rates, Weiss said.

"The rental market in this community is really driven by the working class," she said, noting that people who rent typically are 35 or younger and either stay in Steamboat and purchase a home or leave the community.

The availability of worker visas and the transition of rental properties from short-term or nightly rentals to long-term rentals also can influence vacancy rates, Weiss said.

The Division of Housing does not count nightly rental properties in its survey.

The strength of local industries likely affects vacancies, said Kathi Williams, director of the Division of Housing.

After Sept. 11, for example, much of the state saw double-digit vacancy rates, indicating companies weren't hiring as many employees, she said.

In Steamboat, however, vacancy rates after Sept. 11 did not reach double digits until 2003, when the rate jumped from about 2 percent to more than 11 percent, based on the surveys.

Low mortgage rates likely contributed to that, Peterson said.

"If people can afford to get into a mortgage, they'll buy," she said.

Steamboat is among 17 major market areas included in the surveys, which the division conducts each September and February.

Steamboat's vacancy rate was the highest among resort areas in the survey; Eagle County was at about 5 percent, and Summit County's vacancy rate was almost 8.5 percent. Aspen's 2 percent timeshare vacancy rate was among the lowest in the state.

Steamboat differs from other resorts in that more land and development opportunities are available near town, Williams said.

"You can have workers commute and look for less expensive housing," she said.

The Division of Housing conducts the surveys to gauge housing balances or imbalances in the state, Williams said.

Although it is difficult to generalize, a 5 percent vacancy rate is considered to be an "equilibrium rate," according to the survey.

"When we see double digit vacancy rates, we know that it's not a time to build new units," Williams said.

Instead, the Division of Hous�--ing encourages communities and developers to upgrade existing units and convert units to affordable housing.

The division offers low-interest loans to developers and grants to nonprofit organizations for that purpose, she said.