Report: Lake Tahoe’s economy sputtering
By Kathryn Reed
Lake Tahoe’s economy is not thriving.
That was the message delivered this week by three members of the Tahoe Prosperity Center.
“We need to make it a less difficult place to make a living,” Heidi Hill Drum, executive director of TPC, told a group of near two dozen people at Lake Tahoe Community College on Dec. 16. She was joined on the panel by board members Jesse Walker and B Gorman. It was Gorman who spearheaded the TPC in 2011 as a way to have a single entity delving into the regional economic issues.
Earlier this fall the center released a report titled Measuring for Prosperity.
B Gorman, right, makes a point about Tahoe’s economy as Heidi Hill Drum and Jesse Walker listen. Photo/LTN
Highlights include:
· The Lake Tahoe Basin had a $4.7 billion economy in 2010, with tourism being responsible for two-thirds of that total.
· Tourism-related jobs went from 50 percent of the overall work force in 2003 to 44 percent in 2013. This could in large part be a result in the dramatic decline in casino jobs.
· 2013 was the first time population in the basin increased in years. It’s too soon to know if this is a blip or a trend.
· Hotel tax revenue is increasing in the basin, but not at the same pace as it is throughout California. With Monterey, Napa and Sonoma being Tahoe’s competitors, this is a concern that people in Northern California are choosing to vacation places other than Tahoe. However, with the tax rate being different in each locale, it’s not a true apples to apples comparison.
· There has been a significant loss in the 25-44 age group.
· Housing costs continue to outpace income levels.
· Unemployment is above average compared to California and Nevada.
“Generally household incomes are low in the basin and they are continuing to decline,” Walker said. “They are not keeping up with inflation.”
A chart showed North Lake Tahoe incomes the highest in the basin – averaging more than $35,000 a year, while in South Lake Tahoe they are below $25,000.
“We’ve got problems that are exacerbated by the income trend going down and housing going up,” Walker said.
Carl Ribaudo with Strategy Marketing Group said it’s time to look at unconventional, smaller housing options such as cargo containers or two houses on one lot.
TPC’s next project in partnership with chambers of commerce on both ends of the lake is going to be looking at the work force. Gorman said having enough workers to fill jobs is going to be a critical issue in the coming decade. She mentioned how businesses in the area are already having a hard time finding qualified candidates for jobs that aren’t entry level, service industry positions.
Curious… what ARE the North Lake Tahoe jobs that generate the higher income?
SLT is finally seeing some business labs where small busness concerns can share office space – that’s a good thing to encourage small busness growth and entrepreneur efforts.
Cargo containers?
We wouldn’t need cargo containers or two houses on one lot if Tahoe had better paying jobs. For the past 15 years I’ve heard that South Lake Tahoe needs affordable housing and we still don’t have it. Whatever happened to the group Tahoe Tomorrow? (I think that was the name of the group back around 2003) They wanted to convert motels to apartments. The reality is that the powers that be do not want affordable housing. The goal all along has been to turn Tahoe into Aspen & Vail. (A playground for the rich).
Unfortunately resort towns are tough. They are the first to drop off in economic downturns and the last to recover. Businesses have a hard time finding qualified people because the pay scale does not compensate qualified people.
/only a “consultant” would suggest cargo containers.
There are a number of new housing options being brought to the market including small houses and yes cargo containers that have been converted to small quaility living spaces. For more information check out the link.
http://www.popularmechanics.com/home/how-to/g172/shipping-container-homes-460309/
The point of the comment is there are lots of potential alternative solutions that are being used all over the country and we should expand our options beyond the traditional. Yes probably a suggestion from a consultant who has had the experience of working in over 50 destinations and seeing interesting ideas all over the place.
It’s too bad all the ‘interesting ideas’ that the consultant sycophants come up with would never dare suggest paying a livable wage or providing subsidized housing to their corp. benefactors. The only advice they want to hear is how to internalize all the profit and externalize as much of the costs of employees as possible.
Cargo containers, two houses on one lot?
You are stopping people from building two car garages, adding 2nd bathrooms…you are building 2,500 sq ft vacation/fractional/single family homes next to 900 sq ft existing 50/60 yr old homes??
You all need to rethink those ideas! You could put the ‘cargo’ containers with Mtn Jonny toilets behind Raleys! under the gondola!! YESS!!!
Carl — I’m well aware of cargo container housing.
Let me ask this…do you think cargo container housing would be aesthetically pleasing and blend with the area?
Would you live in one?
Would you mind one being placed next door to your residence?
/not meant to come across as snarky.
//yes I agree we need better housing options than monster vacation homes
All the people displaced by the Loop Road now know where they will be relocated. Carl leaked the news, cargo containers. Thanks Carl.
Take a look at how much it costs to build a house at Lake Tahoe, from the allocation to engineering the plans, acquiring the permits from all the different agencies, state requirements for indoor sprinkler systems (!) then all the highly regulated construction materials that are required, and you’ll have your answer about why there is no affordable housing here. Really. That’s for even a modest house, not just a Mac mansion. Ask any contractor how much money he spends before he even pounds the first nail. You’ll be shocked.
P.S. Totaleld, the construction crews (the legal ones, at least) make a comfortable living wage. But their employers also pay for social security, medicare, workers’ comp, etc, also adding to the construction bill). Your “liveable wage” complaints are silly. It’s a matter of choosing what field you work in. Nobody forces you to stay and work for peanuts.
Why not talk about the reality that many houses have been taken off the long term rental market as owners try to get rich converting their homes to vacation rentals? This has ruined neighborhoods, reduced income for hotels and restaurants and resulted in fewer jobs related to the above.
Building two homes on one lot and installing container homes will further ruin neighborhoods and result in slum areas that we will soon wring our hands over and try to clean up. Besides, all of these would soon become vacation rentals anyway.
Why do we seem determined to follow up on a mess by creating a bigger one? Comply with zoning laws; ban vacation rentals and pay people a living wage. Soon reasonably paid workers will inhabit the homes emptied by banning vacation rentals and tourists will stay in hotels and dine in restaurants.
usually when there are a bunch of counter arguments here, there tends to be some ridiculous stuff said here – but Tea Total and Blue Jeans have it right I think. I know realtors that advise their clients to not have long term renters because it then makes it “harder” to sell a home if the right market window pops up. The shortage of affordable housing has nothing to do with the cost of building a house in Tahoe, heck most of South Shore homes, especially those that are rented long-term, were built years ago, and are pretty substandard and poorly maintained.
this sentence by TeaTotal is so spot on, its worth repeating:
“The only advice they want to hear is how to internalize all the profit and externalize as much of the costs of employees as possible.
I guess one can say the same thing about the loop road proposal.
So Carl, you think TRPA is going to re-write its code to increase coverage and allow boxcars as low income housing? This would take how long???
Sarcastically, maybe freight containers are the first step to becoming a Vail or Aspen….both these places had tent cities and hoards of RVs in the woods as the wages for their service economies catering to tourism were too low to let them afford anything else
Cargo containers would make the perfect landing spot for the relocated prisoners from Guantanamo to live, exposing them to newfound recreation and… enhance the economy and create jobs. Not to mention providing low wage entry level workers. Or Heavenly could provide them in lieu of employee dorms.
LTVA should get right on this.
Blue Jeans- I agree 100%
VHRs are transient occupancy and should not be allowed in residential neighborhoods. This is what the planning department should aggressively study for the sake of a healthy community. Civil codes were created to prevent the situation we see today.
We do not have affordable housing, because our neighborhoods have become filled with VHRs.
VHR owners are those who seek profit at the expense of the rights of residents to a safe and peaceful neighborhood. They are destroying neighborhoods are disrupting property owners and their families and children in their homes.
If we want trained, skilled professionals to live here, we will need to diversify our economy more and make it more desirable to live here (peaceful neighborhoods and good public services, for example).
Another way to boost the economy is to transform LTCC in to a 4 year state college or university with a focus on green energy and environmental studies….
Or one of my personal favorite panaceas for all ills in this town: build a MONORAIL
Actually, the glass is half full.
Merry Christmas everyone! Let’s hope this ski season is one for the record books.
Yes, hopefully the town we be full of visitors for the next two weeks. That would be a great Christmas for all.
So, does anyone have any suggestions on how to create more living wage jobs in SLT (versus just more minimum wage jobs) so that SLT residents could possibly work some place where they can make enough money to buy a house in the town where they live and work, and be able to compete with those out of the area VHR/second home buyers?
For starters, enforce zoning! No VHR’s, which are commercial enterprises, in residential areas. Use housing inventory for what it’s intended, residents!
That will help make housing more affordable. And you won’t need to engage in this silly conversation of jamming people into cargo containers! (Sounds like something right out of the old Communist Bloc Eastern Europe!)
The point that seems to have hit home here is “cargo containers”. Really? Can you get back to that word … economy.
And on the topic of container homes, if you don’t know about this great option for housing, give it a Google. I am researching putting a container home on a lot in Meyers. I like thinking outside the box and want to live in one too!
http://freshome.com/shipping-container-homes/
Ryan, I think you make some good points. I’d like to add I had a laugh at the thought of building a monorail. I also laughed at the guy who once said we shouldn’t do the loop road but should do it right and build a tunnel.
LOL, doing a tunnel in Boston and San Francisco has been a boondoggle, costing billions in overages. It seriously frightens me how stupid people out there are and how much they think something costs. Then I think of those in charge and then I don’t sleep.
Just remember half the people you see everyday don’t even have an IQ of 100.
pretty funny Carl, have you ever stayed in a Tent Cabin?
Unless you are in an area that is zoned for mobile homes (cargo container on wheels) or have a foundation under the container (I don’t know if a slab would work) the codes will not allow them. With a foundation you could call them pre-fab homes and install them with a crane. There are several houses in Meyers that have been built that way, came in pre-fab sections, but they all had foundations. The containers would have to meet all inside codes but you could call the pre-fab walls solid metal framing.
LIVING WAGE – It’s the biggest issue in this town. I’ve been here for 25 years and still have yet to “make it”…I’ve spent years struggling to upgrade my education, and cultivated many professional relationships…all for naught.
The going rate up here for most jobs is $10/hr – Even when the list of qualifications is more than a page long. The Corporations and other companies in this town need to get a grip and take care of their employees if they want to prevent turnover and cultivate loyalty in their people…
(just my 2-cents)
ITs a differnt world. Not everyone needs or wants a traditional house or apartment. There are other options to be at least be consideried otherwise let’s keep doing what we are doing.
This is NOT a HOUSING issue –
This is a JOB and WAGE issue!
Tahoe has an over-inflated real estate and rental market, YES
– BUT if JOBS are paying REAL wages or if there were actual GOOD jobs to grow with and employers who trained and mentored their people…we’d have a very different town.
subee…jobs and housing are inseparable issues.
Robin- I really don’t see that. However, speaking of housing, I think we’re in for some big changes in the rental market with the new Vacation Home Ordinances…more than likely there will be a influx of long term rental as the owners decide not to renew their licenses… could bring down the avg rental rate if we are lucky.
But still, the article above is speaking to the NON-recovery of our economy here…and the crappy wages offered by employers which drives away our locals, meaning lower school attendance, less dollars in the local economy, a smaller employee pool, etc.
Finding a “good” job in South Lake has always been a challenge…but it shouldn’t take a research group to tell us that. It’s sad that North Shore offers their residents a better wage. Why can’t our local employers take a look at themselves and ask, “Could I live on what I pay my people?”
Come to Tahoe, live closer to nature, wilderness is at just outside the door of…
…your lovely… cargo container?
[Marketers] t(°□°t)
(╯°□°)╯︵ ┻━┻
Lake Tahoe – Poverty with a view.
how many of you folks remember the front page of the Tribune stating the Ranchos the new bedroom community of South lake Tahoe back in 1985.
Real Estate/housing is a supply and demand problem and part of the Tahoe “problem”. If someone wants a “living wage”, whatever that is, and affordable housing there are thousands of opportunities available all over this great country.
SCTahoe, that’s the absolute truth.
We would have loved to start off in Tahoe, but couldn’t afford the prices and do our work. So we spent almost 15 years almost 30 miles away, building equity and experience. THEN we moved to Tahoe, where we spent 16 great years.
But we finally had to leave. Escalating taxes to pay for stuff for those who want it all right now, without earning it, forced us out. I miss Tahoe, the beauty, many of the people. But I don’t miss the attitude of, I DESERVE to have this and YOU need to pay for it. Don’t miss that at all.
We live in a world with a digital economy and anyone can make money with an internet connection anywhere. Entrepreneurs would move here in droves if we could offer peaceful neighborhoods and better public services, because those things create a higher standard of living and a better quality of life.
Louis – It is kinda funny to think about a MONORAIL here in Tahoe, but what else could do the following?
*add jobs
*increase tourism
*decrease traffic
*protect our lake and forests from the mass production of fine sediment
*provide pedestrian overpasses
*provide low impact street lighting
*provide reliable public transit for all
ALL AT THE SAME TIME!
I welcome you all to ponder this. It really is not as ridiculous as it may sound at first.
Chief Slowroller- I have! I lived in a tent cabin outside of Denali in Alaska back in the day. I even had a hole under the thing that I dug in to the permafrost which was my refrigerator where I kept the beer cold.
.
If you have lived here awhile and still cannot make it, then it may be past time considering a move to a locale that offers the opportunities you seek. They exist. You just have to work to find them and move towards them. No community has an obligation to support your desire to live there. I may want to live in Beverly Hills (I don’t), and may choose to live there even though I cannot afford to do so. Beverly Hills is under no obligation to ensure that I am comfortable living there.
This is a resort/service town. As such, it can only pay what is appropriate based upon the wealth brought into it by its visitors. We are not the dreaded Aspen so many vilify, so the money traveling here to the blue collar South Shore is via members of the lower upper class at best. Business owners cannot charge Cadillac prices for the Ford/Chevy services and amenities that are in demand. And so cannot afford to pay wages rivaling those paid to service the clientele attracted by its rivals. Need a better paying job? Move somewhere offering them.
SCTahoe-please enlighten us about just a couple of those 1000’s of places where working folks can relocate with livable wages and affordable housing-just more BS from the clueless hate gubmint low-info dupes-you’ve been devastatingly wrong for the last 35 yrs. of reaganism that led us to oligarchy-get out of the way
http://www.feelthebern.org/bernie-sanders-on-working-people/
Tea-
Carson City for starters, followed by Reno, Fallon, Colorado Springs, Tulsa, Orlando, anywhere in the midwest outside of a major city, Lincoln, Cheyanne, Salt Lake City, Twin Falls, Las Vegas…open a map.
That’s not hate. That’s reality if you can see past your victim perspective. So go pound some sand.
SCT-another delusional pantload of misinformation-if it was that easy to relocate to your list of booming job and housing markets, why isn’t there a stampede?-you’re full of dog
Ttroll-
People take control of their situations every day and either go where the opportunities are or, better yet, make their own opportunities. The reason you cannot understand such courage is because you only know how to blame others for whatever lot in life you have earned. The world you live in is one of choice.
Eventually, Tahoe becomes like Big Bear, Vail and Sun Valley where the wealthy live in the area and the workers do not.
Home prices have gone up over 200% in the past 15 years while wages have gone up half that.
And yes, a lot of young people that graduate from South Tahoe High are leaving the area for better opportunities.