For many hardworking residents in Steamboat Springs, the dream of homeownership feels out of reach. Market-rate housing prices have soared, with townhomes and condos averaging over $815,000, pushing homeownership beyond the means of most local workers and retirees.

While some long-time homeowners may not realize it, the reality for today’s workforce is starkly different—market-rate housing is simply unattainable. However, there is a proven solution that helps renters transition into homeownership: deed restrictions.

What Is a deed restriction?

Deed-restricted housing is designed to keep homes permanently affordable for the local workforce and retirees. Unlike market-rate homes, which are priced based on demand and available to anyone who can afford them, deed-restricted homes come with specific eligibility criteria, resale price caps, and affordability protections.

• Pricing: Deed-restricted homes are intentionally priced below market value to ensure affordability.
• Eligibility: Buyers must meet specific criteria, including local employment and income limitations.
• Appreciation: The resale price is capped to maintain long-term affordability

In summary, deed restrictions increase the availability, affordability, and stability of local housing.

Deed restrictions provide a pathway to homeownership

Many people assume homeownership is only for those with significant financial resources, but deed-restricted homes serve as a bridge, allowing local workers to invest in a home, build equity over time, and potentially move into free-market homeownership in the future. Consider a local worker who will purchase a home for $400,000 with the 2% annual appreciation cap in the upcoming Cottonwoods deed restricted condos:

• After 1 year, the home value rises to $408,000, and equity grows from $20,000 to $33,119.
• After 3 years, the home value increases to $424,000 and equity builds to $60,240.
• After 4 years, equity reaches over $74,274—far more than what renters can accumulate. (please note this is simple, not compounding)

By providing a stable, predictable appreciation rate, deed restrictions offer financial security while ensuring future affordability.

Keeping housing for the local workforce

The Yampa Valley Housing Authority’s (YVHA) deed restrictions ensure that homes remain dedicated to local workers and retirees by requiring homeowners to work at least 30 hours per week for an employer physically located in Routt County or be retired from local employment.  Additionally, owners must occupy the home as their sole residence, preventing short-term rental conversions that would reduce local housing stock.

In addition,deed restrictions not only offer working families housing security—protecting them from rising rents or sudden lease terminations—but they also ensure that taxpayer investments in affordable housing remain in the community over the long term, serving local residents  generation after generation.

Location matters: Keeping housing close to jobs and services

Affordable housing isn’t just about cost—it’s also about location. Many local families rely on a single vehicle or alternative transportation, making proximity to grocery stores, schools, and workplaces essential. Strategic planning for deed-restricted housing near these services reduces the financial burden of commuting and enhances quality of life.

YVHA’s commitment to long-term affordability

Recognizing the need for lasting affordability, YVHA has refined its deed restrictions after extensive research and community input. YVHA’s funding model—including land donations and grant funding—allows for reduced home prices, making homeownership more attainable.

Key aspects of YVHA’s deed restriction program include:

• Long-Term Affordability: Appreciation is capped at 2% annually or 50% of the Area Median Income (AMI) increase, ensuring sustainable home prices.
• Equity Growth: Homeowners can invest in and improve their properties, with certain capital improvements factored into resale pricing.
• Permanent Affordability: Homes at The Cottonwoods at Mid Valley and future YVHA developments will always remain deed-restricted, preserving affordability for generations.

A solution for the future

The affordable housing crisis in Steamboat Springs is not going away—but with smart policies like deed restrictions, we can provide real solutions. Deed-restricted homes empower local workers to transition from renting to owning, build wealth, and create stability for their families. As a community, we must continue to support and expand these programs to ensure that those who contribute to Steamboat Springs can also call it home.

This letter was submitted as guest column from the Yampa Valley Housing Authority and was signed by the authority’s 15 board members. It was written by Robin Schepper, a communications advisor with the authority.