By Paul Post
In the iconic film “Field of Dreams,” a mysterious otherworldly voice tells Ray Kinchella (Kevin Costner), “If you build it, he will come.”
But unlike rural Iowa, Saratoga Springs doesn’t need a baseball diamond.
The issue is lack of affordable housing for middle-income people such as teachers and healthcare workers whose talents are critically important to essential local employers.
“I would say the two biggest challenges to Saratoga County’s continued economic growth are the need for more workforce housing and expanded public transportation,” said Todd Shimkus, Saratoga County Chamber of Commerce president. “We continue to have job openings across every sector of our local economy, and for many the applicant pool is limited by the fact that more and more people are being priced out of living close to these jobs or lack convenient and reliable transportation to travel to work consistently.”
“The median sales prices of a home year to date in Saratoga County is now over $400,000 and it is over $600,000 in Saratoga Springs so we are pricing ourselves out of the competition for talent at all levels of income,” he said.
Several obstacles stand in the way of providing more workforce housing. These include, but aren’t limited to: 1) the cost of land, building materials and labor; 2) costs associated to complying with local zoning requirements; 3) occasional local opposition to such housing in certain neighborhoods and communities.
Katherine Tiedemann, the city’s community development planner, said traditional low-income affordable housing is easier to address and navigate because there’s a set income cap. Anybody who makes below this figure is eligible to apply.
Middle-income employees typically aren’t enrolled in other types of assistance programs and are less familiar with affordable housing opportunities, she said.
Under the city’s Workforce Housing Program, there are currently 11 two-bedroom condominiums on Jefferson Street (unrelated to the Housing Authority’s Jefferson Terrace), reserved for buyers at 80 percent of the median income, ranging from $59,400 (one person) to $84,800 (four persons).
But there are currently no vacancies and under the life cycle of any property, people typically stay at least 15 years before moving somewhere else, Tiedemann said.
“It’s a very contemporary issue that we’re all facing,” she said. “ A lot of people in the city are talking about it. I don’t know if there’s a direct answer right now.”
Shimkus said, “I think our state is more controlling than flexible in the way they think workforce housing should be built, especially as it relates to working with non-profits versus for-profit developers. Given this situation, I think local and state officials really need to look at using the land in downtown Saratoga Springs where the former senior center is located for workforce housing.”
“Let’s turn that property over to the Saratoga Springs Housing Authority and let them set up a pilot where downtown employees in our hospitality and healthcare sectors will get the first chance to rent the units they build so these people can walk or bike to work,” he said. “This is the type of action we will need to take or else Saratoga Springs will become a city in the country exclusively for the wealthy which is not a path to sustaining our economic success.”
In January 2023, Governor Kathy Hochul announced $61.6 million in state funding for a new 202-unit affordable housing complex on Tait Lane east of Allen Drive. The more than $77 million project, done by the NRP Group, has a combination of town homes and three-story walk-up buildings. This rental community brings much needed housing for a vibrant younger workforce who are finding it increasingly difficult to identify appropriate viable cost-effective housing options, families looking for affordable housing in high performing school districts.
But the need for workforce housing is not unique to Saratoga Springs as outlined in two recent studies, one for the Town of Queensbury called “Affordable Housing Strategy,” and another for Lake George-Lake Champlain Regional Planning Board report called, “Building Balanced Communities for the North Country,” which focused on Essex, Clinton, Franklin and Hamilton counties.
The Queensbury report said housing cost stress isn’t at crisis levels, but will likely increase significantly in the near future because many categories of housing costs for both owners and renters are expected to increase at a rate roughly double the expected increase in household income growth.
“Indeed, by 2027 both renters and owners will have a unit gap at all income levels up to 120 percent of median income “ . “there is likely to be a significant affordability problem” . “and units affordable at or below the 30 percent-of-median income threshold will be largely unavailable leading to many households becoming ‘housing cost burdened’,” the report says.
The North Country study says the gap between income levels and housing costs is much more severe in the sparsely-populated Adirondack region, which has few large employers. The “drastically misaligned” situation puts quality housing options out of reach for many people, it says, adding that “workers and their families are being priced out of many employment centers, which results in longer commutes or relocation out of the region” and that “businesses have struggled to attract and retain employees due to local housing challenges, threatening future regional economic growth and vitality.”
Specifically, the report says “the median household income in the region grew by 15 percent from 2015 to 2020 while the median home price grew by 28 percent. The mismatch between income levels and housing prices means a typical household would need an additional $20,000 in annual income to afford a typical median-priced home in the region. Home prices are generally out of reach of most workers and year-round households. Homes that are available at more attainable price points often have quality issues or are located far from employment centers, amenities, quality schools.”
Both the Queensbury and North Country reports point out that the region’s economic conditions and housing availability and affordability are inextricably linked, and that there is no single solution to solving the problem, which requires a multi-pronged approach.
Among their key recommendations, both reports call for a drastic change in zoning regulations to accommodate more affordable workforce housing.
“Current zoning regulations in many parts of the region do not allow for construction of workforce housing,” the North Country study says. “Examples of existing restrictions that are stifling the creation of needed housing include unreasonable density restrictions in community centers and prohibitions on multi-family housing types in residential areas, among others.”