I posted a letter to the Pagosa Daily Post yesterday — ‘Camels, Straws, STRs, and Residential Use Zoning’ — which described why institutional investment in single-family residential use areas may no longer be economically viable in the Town of Pagosa Springs.
Today, I am considering some interesting facts, and possible laws and regulations for single family residential use ownership. It’s interesting how laws and regulations cascade down from the Federal level, to State, to County, and finally to the Town level… or at least, should.
Please consider these questions, and (before reading further) write down your First Answers:
1) Should America be more like Canada?
2) Should Colorado be more like Texas?
3) Should Archuleta County (CO) be more like Travis County (TX)?
4) Should Pagosa Springs be more like Austin?
Next consider these ideas, as consideration for changing your First Answers:
1) Foreign investors (1/3 of the total institutional investment) own a very large share of rental homes in USA. Institutional investors increase home prices, and makes it more difficult for Americans to purchase a home. 47% of rural America renters pay 1/3 or more on their income in rent each month. Canada has a ban on the purchase of residential property by non-Canadians. U.S. House Bill 6383, introduced last year, would place a National Security Moratorium on foreign purchases of U.S. real estate. U.S. Federal government could regulate foreign investment, and the creation of STRs, to protect affordable housing.
2) Foreign investors purchased (in last decade) 1.7 million acres of agricultural land in Texas — more than in any other state. Colorado should propose legislation for registration and management of institutional investment in single family housing.
3) 41% of single family residential homes (sold in Travis County in 2022) were purchased by institutional investors. Texas House Bill 1056 would require registration of institutional investors (single-family residential) in housing. Texas HB 1057 would prevent institutional investors from buying single family homes (once listed) for a period of 30 days. Texas (and hopefully every Texas county) could pass laws to restrict investor-owned residential homes. So could Colorado, and Archuleta County. A high percentage of single family homes sold in Archuleta County in 2022 were purchased by institutional investors.
4) Owners of STRs (many times institutional investors) do not live or work in single-family residential areas. The City of Austin now refuses to issue investor-owned STR permits in residential use areas. In Pagosa Springs, STR Owners (many out-of-towners) could provide meaningful Town revenue for improved workforce housing.
Considering the above ideas…
1) Should America be more like Canada?
2) Should Colorado be more like Texas?
3) Should Archuleta County (CO) be more like Travis County (TX)?
4) Should Pagosa Springs be more like Austin?
Did your Final Answers change from your First Answers?
Hank Lydick
Austin, TX (now)
Pagosa Springs, CO (soon)
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