The "Missing Middle" of Housing in Aspen and the Roaring Fork Valley | Avant Garde Aspen Luxury Real Estate
Aspen and the Roaring Fork Valley have long been synonymous with luxury real estate and stunning natural beauty. Yet beneath the surface of this idyllic mountain region lies a growing challenge: the lack of housing options for the "missing middle." These are the individuals and families who earn too much to qualify for low-income or affordable housing programs, but still struggle to afford market-rate rents or homeownership.
In Aspen and the surrounding communities, high housing costs are a significant barrier for middle-income earners. Many of these individuals find themselves in a precarious situation:
Income thresholds for affordable housing: Affordable housing programs in the area often come with strict income limits and monitoring by the State of Colorado. A small increase in monthly earnings—whether from a bonus, overtime pay, or additional seasonal job, over the income bracket for their unit —can suddenly disqualify a person or family from these programs, leaving them having to move out immediately, and scrambling for alternative options. Also, some of these affordable housing units are no longer in good shape to live in and are in need of repairs, while other low income housing options are brand new and competitive to get into. Aspen also has a lottery system for some of their affordable housing options in specific neighborhoods.
Market-rate rentals are out of reach: The gap between affordable housing and market-rate options is immense. Market-rate rents in Aspen can reach multiple thousands to tens of thousands of dollars per month, and hundreds of thousands for homes in Central Aspen, far exceeding what many middle-income earners can comfortably pay.
Buying isn’t feasible: With interest rates at historic highs and housing prices in Aspen remaining exorbitantly expensive, homeownership feels unattainable for many in this group. Down payments, closing costs, and monthly mortgage payments present insurmountable obstacles for those already stretched thin.
This missing middle is not just a statistic—it’s made up of teachers, nurses, emergency responders, hospitality workers, and small business owners who form the backbone of the local economy. Without viable housing options, these essential members of the community are often forced to live far outside Aspen, facing long commutes that take a toll on their time, finances, and quality of life. Employers may do their best to help employees with their housing challenges as best they can, but they still have to run a business on an operable budget, and most do not take responsibility to help workers find housing in the Roaring Fork Valley.
Some even find themselves in temporary housing situations, crashing with friends, staying in short-term rentals, hopping across multiple units per year, bunking up with roommates who might be a bad fit for them, or considering leaving the valley altogether. This exodus not only disrupts lives and makes things logistically challenging for workers, but also creates stresses and challenges for local businesses and public services struggling to attract and retain employees.
The lack of middle-tier housing options creates a cascading set of challenges:
Economic instability: Businesses suffer when workers can’t afford to live near their jobs, leading to higher turnover and staffing shortages.
Community erosion: Aspen risks losing the diversity and vibrancy that make it unique when middle-income families and individuals are priced out.
Increased inequality: A polarized housing market exacerbates the divide between the wealthy and everyone else, creating long-term social and economic challenges.
Addressing the missing middle requires creative solutions and collaboration across sectors:
Workforce housing initiatives: Expanding workforce housing programs to include middle-income earners could help bridge the gap. After talking to a developer and architect working on a project in Lake Modern, I was told that they were considering putting in housing options for people who specifically fall into this "missing middle" category. Those units are still being built, but time will tell if they deliver on their promises or not.
Public-private partnerships: Collaborations between local governments, developers, and nonprofits can spur the creation of more affordable middle-tier housing.
Zoning and incentives: Adjusting zoning laws and offering incentives for developers to build smaller, more affordable units can increase housing stock.
Interest rate relief programs: Local or state-level programs to assist with down payments or subsidize interest rates could make homeownership more accessible.
The "missing middle" is a critical issue for Aspen and the Roaring Fork Valley. Without meaningful action, the community risks losing the very people who make it thrive. Solving this problem will require innovative policies, a commitment to inclusivity, and a collective effort to ensure that everyone—regardless of income level—has a place to call home in this beautiful region.
Contact the real estate team at Avant Garde Aspen to sell your property, buy luxury ski property, and browse resort homes for sale in Aspen, Basalt, Carbondale, and the rest of the Roaring Fork Valley.