How Breckenridge Keeps Local Housing Accessible in a Million-Dollar Ski Market

Mountain towns with great skiing have been attracting the affluent crowd, but it's been pricing out locals. In Breckenridge, CO, where the median list price is $1,045,000, the city has a plan to help.

"Ski towns tend to have higher housing costs because demand is driven not just by local residents but also by second-home buyers and vacation property investors, while they typically have limited land, stricter zoning, and mountain geography that constrain new supply, creating persistent upward pressure on price," says Anthony Smith, senior economist at Realtor.com®.

To help, Breckenridge put in place deed-restricted housing for workers.

"Deed-restricted housing aims to keep homes affordable for local workers by capping resale prices, limiting buyers to income-qualified households, and requiring owner occupancy, so those homes stay in the workforce instead of becoming vacation or investment properties," says Smith. "The approach is designed to trade some individual upside for long-term affordability and community stability."

These deed-restricted properties in Breckenridge must be occupied as a primary residence by a person employed a minimum of 30 hours a week in Summit County, and remote work is not eligible. The property may not be used as a seasonal home, vacation home, or as a short-term rental. Some are subject to income caps as well.

Affordable housing opportunities

Jake Carter, 27, is an emergency medical technician who recently told High Country News that he bought a deed-restricted two-bedroom condo in Breckenridge for 20% lower than market value.

Carter turned to a local program known as Housing Helps, which provided him with 10% of the purchase price for his down payment in exchange for an additional deed restriction capping the condo’s annual appreciation at 3%.

This is known as a "full deed restriction," meaning the property will be subject to a 3% appreciation cap in perpetuity. This limits resale price appreciation at 3% annually or the Area Median Income (AMI) increase, whichever is greater.

The deed restriction will remain with the property in perpetuity and future owners will be subject to the same restricted use.

"Housing Helps is a deed acquisition program adopted by Breckenridge Town Council and implemented in 2019," Darci Henning, housing program manager for the town of Breckenridge, tells Realtor.com. "The program works to preserve existing housing inventory by incentivizing home buyers and homeowners to utilize their homes for the local workforce, specifically by providing funding to owners and buyers in exchange for placing a deed restriction on their market rate or unrestricted property."

Under the program, the town pays owners, buyers, and local businesses 15% to 25% in return for a deed restriction on homes that are currently unrestricted.

"The amount of funds received also greatly helps the local workforce with affordability directly," explains Henning. "By receiving a grant that does not have to be paid back, those funds can essentially be viewed as reducing the purchase price of the home."

Investing in local workforce

"Deed-restricted housing is one of the few tools that actually keeps Breckenridge livable for the people who work here," Breckenridge real estate agent Sara Gambino of Berkshire Hathaway tells Realtor.com. "These homes are designed to create real ownership opportunities in a market that would otherwise price out many local professionals. It is not a complete solution to the housing challenge, but it absolutely makes a meaningful difference for year-round residents who want to build a life here."

A whopping 1,700 of the estimated 2,300 resident-occupied homes in Breckenridge are deed-restricted for the local workforce, which is roughly 75%, Henning confirms.

In 2022, Breckenridge passed a $50 million housing plan to invest that amount into workforce housing over the following five years. Since then, more than 400 new deed-restricted units have been constructed.

Breckenridge's sales taxes, short-term rental fees, and real estate transfer taxes (which collect 1% from every property transaction) also support local housing programs and initiatives such as Housing Helps.

Affordability and ski towns

Margaret Bowes, executive director of the nonprofit Colorado Association of Ski Towns, tells Realtor.com, "Affordable housing has always been the No. 1 issue for ski towns, and it's amazing the accomplishments that Breckenridge has had in this area."

Gambino says deed-restricted housing allows teachers, first responders, hospitality workers, and small business owners to build equity and remain part of the community they serve. "It directly supports the long-term sustainability of the town," she says.

Bowes says that many other ski towns are following Breckenridge's lead. "I can't think of a single one of my members who isn't focused on workforce housing," she explains.

In Steamboat Springs, CO, tech billionaire Mark Stevens recently bought an apartment complex and is renting out units to local workers for below market value.

"It's been a great boon to that community to have that philanthropic angel swoop in," adds Bowes. "Ski towns need more affordable workforce housing because our tourism-focused economies depend on it."