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Last year, Kelly Peterson and her husband searched for a two bedroom apartment in Longmont that they could afford. The lack of places within their price range pushed them to the edge of town. This is a problem shared by many in Longmont.
Surges in rental prices threaten to displace existing residents and deflect new ones. For Peterson, her search ended when she found an apartment on the border of Longmont and Firestone with a rent of $1,700 per month.
Now a year later, it is time for the couple to renew their lease. Their rent for the same apartment has risen to $1,950 per month, Peterson said.
The rent increase has the Petersons searching again for an affordable place to live in Longmont – where they both work for local businesses. The couple are bewildered by how much money spiking rental prices would cost them in the long run, Peterson stated.
Ultimately, the duo decided that what they’d spend towards high, routine rental costs over the next year would be better applied towards purchasing a home, although “we’re freaking out, because that’s also so expensive,” Peterson said.
“I know other people, especially families, are really struggling to find affordable places in Longmont,” she added.
In 2020, the average rent price for a one bedroom apartment in Colorado was $1,576, which rose to $1,977 in 2021, a study by Rent.com revealed.
Today in Longmont, the average rent per month for a 902 square foot apartment – which could fit three small bedrooms – is $1,736, according to Longmont’s Director of Housing and Community Investment Molly O’Donnell.
The U.S. Department of Housing and Urban Development issued a model stating that Americans should not pay more than 30% of their monthly income on housing. In Longmont, that would mean residents would need to make at least $69,600 a year, O’Donnell said, which is 88% of Longmont’s area median income of $79,140.
Around 28% of Longmont renters are considered “cost burdened,” meaning they pay more than 30% of their monthly income to rent. Another 25% of renters fall into the “severely cost burdened” category, meaning they pay more than 50% of their monthly income.
While Longmont does attract several businesses who offer salaries at or above the area median income, that doesn’t change the state’s minimum wage which rests at $12.56 per hour.
A living wage calculation for Boulder County estimates a single adult without any children would need $21.07 an hour to support themself. This further assumes that housing costs only weigh in at $16,607 a year. Per O’Donnell’s rental average of $1,736 — which equals $20,832 annually — residents are spending an additional $4,225 annually on housing costs in Longmont.
These are not the only cost factors to consider for Longmont residents, as food, transportation and utilities also play a role.
Longmont’s Chief Financial Officer Jim Golden estimates that the average cost of utilities for a Longmont resident will rise from $191.69 in 2021 to $197.13 in 2022, he said, which includes water, sewer, storm drainage, sanitation and electricity costs.
Food costs, according to the living wage calculator, which was assessed in July 2021, are estimated to be around $4,000 annually for a single adult without children. Transportation costs, which include routine maintenance, fuel costs, vehicle financing and insurance are estimated to be $4,938 or more annually.
Marc Cowell, the executive director of OUR Center — a nonprofit committed to helping individuals become self-sustainable — said the organization has seen an uptick of families coming to OUR Center since the beginning of the year.
They are “really struggling to afford the cost of living in Longmont,” he said.
“Households are coming to us often and telling us their landlords are asking for more money in rent when it comes time to renew their lease,” Cowell said. “Wages here are not keeping up with the increased cost of living, and more and more families are struggling to afford their basic needs, including rent.”
Although OUR Center offers various, short term services to supplement individuals’ and families’ living expenses, Cowell recognizes that the current financial crisis extends beyond what the nonprofit can do for the community. It also causes him to fear for Longmont’s future.
At OUR Center, “we’re starting to hear for the first time that residents are leaving Longmont because they can’t afford to live here, and housing is a big piece of that,” Cowell said.
“A community’s well being is dependent on whether its residents can afford to live where they work and recreate,” Cowell added.
“Without some sort of housing that can be affordable with the wages in Longmont, I think it’s going to be very difficult for the community to move forward. I think it will hurt small businesses, nonprofits like ours … There could be a devastating impact to the community’s overall health if we can’t figure out a solution to this,” he said.
