Whitefish needs nearly 1,000 more dwellings to compensate for current workforce housing shortages and keep up with demand through 2020, a new affordable housing needs assessment reveals.

The big conundrum for the resort community is that in the midst of this dire need, an inventory of proposed and pending housing development shows only 10 affordable housing units are in the works — six apartments are under construction and four are proposed.

It was the desperate need for affordable housing that prompted the Whitefish Chamber of Commerce to get the ball rolling six months ago on a needs assessment and plan for how to deal with the housing shortage in Whitefish. The study, completed by Rees Consulting of Montrose, Colorado, and paid for by the city of Whitefish, was unveiled Monday during a community meeting in Whitefish.

The study’s conclusions are eye-opening, but not surprising.

Most wages can’t compete with the cost of housing. More than half of the jobs in Whitefish are low-wage, tourism-related positions subject to seasonal fluctuations.

Almost one-third of employers had someone leave their employment or decline a job offer in recent years because they found a job nearer their place of residence, the study showed.

The second/vacation home market is affecting the local housing market because it simultaneously generates demand for workforce housing while reducing the supply.

“Second-home owners have become more cost-conscious since the recession and now compete with locals for lower-priced homes, decreasing the available supply and pushing the prices of these homes higher,” the study notes.

The growing short-term rental market also is exacerbating the housing crunch in Whitefish. More rentals are now on 6- or 9-month lease terms so they can be leased at premium prices during the peak summer visitation, decreasing the availability of units for year-round local residents, according to the study.

For property owners, short-term rentals are where the money is. Average daily rents received for AirBnB-listed units ranged from nearly $200 for a one-bedroom unit to more than $450 per day for a four-bedroom home.

“With the explosive growth in short-term vacation home rentals available through websites such as VRBO, AirBnB and other online hosting sites, these concerns have come to the forefront, not only in the Whitefish area, but also among most every high-cost resort community throughout the Mountain West,” the study concludes.

Another factor contributing to the affordable housing shortage is the fact that newer homes for sale are not targeting the local workforce. About 80 percent of local buyers search for homes priced under $300,000, yet the median asking price of condominiums built in the past two years is about $400,000 and the median price of newer single-family homes and townhouses is about $450,000, the study indicated.

Whitefish will need about 245 housing units per year, or a total of 980 housing units, to meet the demand through 2020. Of those units, about 605 should be provided at more affordable prices than supplied by the market to meet the full range of needs of the local workforce, the study recommended.

All totaled, Whitefish needs 670 housing units to catch up to the current need and another 310 to keep up with the demand through 2020.

The study further breaks down housing needs, advising 400 of the 980 needed units should be ownership units, with 580 as rentals. About 60 percent of the needed ownership units should be priced in the affordable range for the workforce — $160,000 to $310,000 for households earning between $40,000 and $75,000 per year.

About 62 percent of the needed rental units, or about 360 units, should be priced affordable for workforce households earning at or below $40,000 annually. This ranges from $400 to $1,000 per month. The study also advised that renters want to live close to their jobs in Whitefish, and also often desire to have pets, extra storage and/or garages.

Features Editor Lynnette Hintze may be reached at 758-4421 or by email at lhintze@dailyinterlake.com.