Regional Housing Task Force is looking for way to fight shortage

The housing shortage in Mineral and Sanders counties isn’t new, just as it has been an ongoing problem across Montana.

County officials are trying to come up with some ways to alleviate the problem by working with economic development professionals and many others.

Last Thursday, the Housing Task Force held its first meeting, a virtual affair due to COVID-19.

GB Consulting’s Buddy Borden, who was hired to conduct an in-depth study of housing issues in both counties, led the meeting. He supplied several statistics and figures that were designed to shed light on the demographics.

The ultimate goal is to obtain private investment funds, naming Opportunity Zones were tax breaks are used to spur construction and tax credit programs such as grants or loans.

Population growth, while not extreme, has been continual in both counties. According to U.S. Census figures, the population growth in Mineral County is 4 percent from July 2010 to July 2019, or about 174 people. Its estimated population is 4,397 as of July 2019.

In Sanders County, its 2010 population was 11,413. U.S. Census estimates peg its 2019 population at 12,113.

Realtor Judy Stang, 67, has lived in Mineral County since 1958. She has a degree from Montana State University and has served a county commissioner in the past.

She knows both counties need more affordable housing, but she’s not sure how it will happen.

“I have tried to get some contractors to build spec homes, but the cost to build them is more than they are worth,” she said. “There are a lot of fixer-uppers, but some of them require too much work or prospective buyers don’t qualify for certain loans, so those are issues.”

Stang also said many of the rental properties are substandard and for some, they just don’t make enough to buy or rent.

“The schools, hospitals have struggled to bring people in because of the lack of housing,” Stang said.

She said many of the people she sells homes to are either retired or were raised here and wanted to return home.

“There are several who have come here for political reasons,” Stang said. “They are from Washington, Oregon or California, and they just don’t care for the direction some of those places have taken.”

She said families struggle to find places to live, too.

“You can’t have a family of four or five living where there aren’t at least three bedrooms,” Stang said.

For instance, on one realty website, a three-bedroom, two bath home with about 2,100 square feet on a one-half acre plot in St. Regis costs $159,000. The home was built in 1976.

Another home built in St. Regis in 2020 has riverfront access to the Clark Fork. Its dimensions are similar with 1,600 square feet on a one-half acre lot with three bedrooms and two baths costs $339,000.

“A lot of people just don’t make enough to afford some houses,” Stang said.

Borden’s figures also showed the median and average value of homes in both counties from 2014-18. In Mineral, the median value is $193,690 and the average was $221,934.

In Sanders, the median was $207,185 and the average was $267,146.

Further illustrating the difficulties for home buyers was the percentage of owner occupied homes valued at less than $100,000. In Mineral, just 54 residences of 1,549 were under the six figure mark. In Sanders, 365 of 3,791 were under $100,000.

For homes valued at $500,000, in Mineral County, there were 309, about 20% of the residents. In Sanders, the figures were similar with 784 valued over $500,000.

Stang’s observations about who she sells to are on the money when compared with figures provided by Borden.

In Mineral County, the population of residents 65 and over grew from 15.7% in 2005 to 19.8% in 2019. In Sanders, it was more pronounced with 18.6% of residents 65 and over in 2005 and 32.2% in 2019.

The 45 to 64 age class dropped six percent in Sanders in the same time frame and the 20 to 44 age group dropped three percent.

Sources of income also revealed significant changes in Sanders County. In 2005, 51% of residents’ income was earned. By 2010, it was down to 41.8%. In 2018, it was 36.9%.

In 2018 in Sanders County, 37.8% of residents’ income came from transfer payments (Social Security, welfare or student grants) and 25.4% came from dividends, interest or rents.

Mineral County’s earned income has been more stable with it at 52.7% in 2005 and 49.9% in 2018. It dipped to 47.6 in 2010 following the 2008 Recession but rebounded back to 50.1% in 2015.

“I don’t think it’s all doom and gloom here like some do, but we need more plumbers and electricians here,” Stang said. “The ones we have can barely keep up. We definitely need more infrastructure.”