As The Loop finishes construction on its second tranche of apartments, Jackson, Mississippi resident Susanne Sills was among the first to move in.
She and her husband moved to Jackson Hole for the summer, dipping into their savings to pay more than $5,000 per month for a two bed, two bath.
“We decided to treat this as our grand six month adventure,” she told KHOL while walking her dog Ilsa on South Park Loop Road.
That price tag was originally quite similar for “workforce” units that can only be rented to local workers. But as it exceeded the deadline to fill those apartments, Utah-based developer Mogul Capital has dropped prices twice. An on-site property management representative declined to comment and pushed questions to a media team that did not return a request.
Now, workforce studios on up to three-bedroom homes are all renting at about 20% less than market rate, according to Jackson and Teton County Housing Director April Norton. Workforce studios are now renting for $2,500, down about $500 from when they were first listed last summer at $3,005, she said.
“It’s a nice example of how the compliance program works with the supply side,” she said.
The softening in the workforce rental market is proof that creating new supply with certain restrictions in place can work, she said. It comes as elected officials debate similar strategies at 90 Virginian Lane.
There, many of the proposed units may be restricted broadly for Teton County workers, rather than people making a certain income. Both approaches are needed to fit the community’s diverse needs, said Clare Stumpf, the executive director of housing advocacy nonprofit Shelter JH.
“We need everything,” she said. “There are strengths and weaknesses of both of the programs and that’s why they work well together.”
For more than 30 years, Teton County has had affordable housing with income limits and local work requirements. But the workforce restrictions — where prices aren’t linked to income — are relatively new. Hidden Hollow, which opened in 2019, was one of the first big tests. Nearly half of its 168 apartments were set aside for local workers without income requirements. But because it staggered lease durations, Hidden Hollow didn’t flood the market the way The Loop did, Norton said.
Construction is nearing completion on The Loop’s second building. The complex is slated to have nearly 200 units total.
In May, Mogul Capital defaulted on its agreement with local government to fill the units by a designated time. With less than ten units left to fill, the price reductions should do the job, Norton said.
She’s already looking to broader lessons from the situation.
Norton said the housing department is considering requiring developers to reduce prices by at least 20% if they don’t fill in time. That change could come as the department updates its regulations this year.
“I want to figure out how to make it easier and more predictable for everyone,” Norton said.
She is also curious what prices Mogul will choose for its second building as those come on the market this year. The Loop has not yet released pricing for those units.
