Addressing Housing Shortages in Alaska’s Chugach National Forest
The Chugach National Forest (CNF) is located in southern Alaska. It is defined by untapped natural views and a pristine ecological environment. It is the second largest site in the entirety of the US Forest Service (USFS) and has widely outpaced expected visitation. This large size provides the forest with an extensive geographic footprint, leading to logistical challenges that are faced by its employees in the forms of transportation and housing.
DJ&A Engineering requested that Dakota Institute (DI) develop a housing market study for the three component districts (Cordova, Glacier, and Seward) and to provide recommendations for future housing plans. The Dakota Institute developed separate market analyses for each of the component districts. These recommendations developed by DI will provide DJ&A and the USFS with empirical evidence needed to justify any potential projects to remedy the housing problems facing the forest. Without confronting these housing issues, the ever growing visitation to the forest will be met by difficulties retaining and hiring new employees.
Methods
For this study, DI developed “drive-time” market areas in the regions surrounding the various ranger stations. These areas will highlight reasonable commute regions, allowing for DI to compile market research on the local housing markets. With each component district of the forest, the Dakota Institute would compare the local housing market with employment numbers and USFS-owned housing. Taken together, this data will provide insight into the feasibility of finding housing for employees and prospective employees of the USFS.
Glacier
In relation to the Dakota Institute’s study, the defining element to the CNF’s Glacier district is its relative proximity to the Anchorage metropolitan area. With DI’s definition of the Glacier drive-time radius of approximately 30 minutes, a portion of the Anchorage housing market will be included as viable housing options for staff at the Glacier station. Anchorage, while on the periphery of the drive-time region, is a growing metropolitan area. On the other hand, the immediately neighboring communities to the ranger office have been shrinking at an annualized rate of .2% (Glacier Census market area). The combination of limited housing in the immediate proximity of the Glacier office and the relative accessibility of the Anchorage metropolitan area provides for a unique set of factors affecting the housing market for employees.
With the minimal housing choices available, many long-term employees will find it difficult to afford the options presented to them. For instance, an entry-level full-time GS05 employee will earn a salary of $42,491 (2023). In a seasonal position, assuming the unlikely feat of finding rent at the market rate, this salary would cause an employee to be contributing 44% of their income towards rent. With a GS07 salary, this housing burden would fall to 36%. It is worth noting that, in order to exceed the median salary for the Glacier Census market area, an employee would need to obtain a GS08 position earning $58,292 (2023).
The Glacier district operates four housing units — two bunkhouses and two trailer pads. These bunkhouses are six double-occupancy units, with one constructed in 1973 and the other in 2002, that have been determined to be in need of substantial repairs. With a total occupancy of 43 GS staff, these housing units will be filled to capacity during the summer despite being 25 miles from the ranger station and 50 miles from Anchorage. In spite of this, the Glacier district has 22 vacant positions largely attributable to housing barriers.
Seward
When compared to housing availability in the Glacier and Cordova districts, the Seward district functions as a middle point between Glacier’s close proximity to Anchorage and the near-total isolation of Cordova. For the Seward district, the district headquarters is 100 miles from Anchorage and 23 miles from Seward. The population of the Seward Market Area, defined by a 60 minute drive time radius, totals 5,653 people and is expected to grow at an annualized rate of .38%. Lacking market incentives for affordable housing and distance from large housing markets, the employees and prospective employees of the Seward district have substantially limited options for housing. Exacerbating this problem is that, in a six year period, the staff size within the district has increased by 26%.
In total, the Seward district has 48 employees — 19 of which are full time, 29 are seasonal employees, and 20 positions are vacant. The district ranger believes that the primary reason behind these vacancies is the difficulty prospective employees have in securing housing. Of the 48 employees, the most frequent GS grade for full-time employees is GS07 (step-one salary, $52,636) and GS05 (step-one salary, $42,491) for seasonal employees. In the Seward District Market Area, the average household income for a home-owning family is $146,758. The sheer disparity between these salaries effectively relegates employees of the Seward district to the rental market. For a seasonal, step-one GS05 employee, the expected burden of rent towards their salary would be 43% — assuming market-rate rents could be found. In the case of a step-one GS07 employee, this would fall to 34%. Nevertheless, the small insulated nature of the housing market in the Seward District Market Area makes it exceedingly difficult for new employees to achieve market rents. Typically, these will be found through word of mouth.
The Seward district does maintain housing options that are owned by the US Forest Service. When compared to the Glacier district, there is greater availability for USFS housing. There are four properties held by the Seward district. Of these four structures: one is a single family unit, two are dormitories constructed in the early 1980s, and the last remaining is a flex housing unit. The flex housing, constructed in 2008, is rated to be in good condition and has a max occupancy of 12. In the case of the dormitories, these are both rated to be in poor condition and have a combined capacity of 36. During the summer months, these units will be filled to capacity.
Cordova
Among the three regions of the Chugach National Forest, the Cordova district is notable for its extreme geographic isolation — access to Cordova is limited to air-travel with Anchorage and to a seasonal ferry operating in the summer months. Whereas the Seward and Glacier districts had “drive-time” radii to note reasonable commute times, this is simply not applicable to Cordova. Although Cordova is isolated from the rest of Alaska, the district still has an impressive staff count of 25 (15 full-time, 13 seasonal, 8 vacant). When compared to six years prior to DI’s study, the staff for the district grew by 40%. Though this growth is dramatic, the growth of Cordova — as forecasted by DI — is expected to be much more tame at an annualized rate of 1.01%.
The small population of Cordova, at approximately 2,500 people, with little forecasted growth indicates that the affordable housing market in Cordova is expected to be exceedingly minimal. With the present market and CNF pay-structure, the typical employee will be unable to afford homeownership and will be forced into the rental market. For a typical step-one GS05 employee, the burden of rent would amount to 46% of their salary; in the case of a step-one GS07, this would fall to 37% of their salary. Much like with the Glacier and Seward districts, these numbers are dependent on the ability to find market-price housing. Without existing connections, particularly in a community the size of Cordova, finding market-price housing is exceedingly difficult.
The Cordova district has five pieces of USFS real estate that are utilized as housing for staff members. There are two single family residences that were constructed in 1961 and are rated to be in poor condition. Additionally, there are two bunkhouses — one with a capacity of eight, the other with twelve — that were constructed in the late-1970s / early-1980s. These structures are rated to be in poor and fair condition, respectively. Lastly, there is a eight-person capacity fourplex rated to be in fair condition.
Conclusions
With these individual reports, the Dakota Institute has provided the different ranger districts in the CNF with better insight into the status of their housing markets and into their own housing portfolios. This information will allow for smarter decisions to be made regarding the future of the USFS-owned housing, particularly in cases where the structure’s condition is rated as poor, and to appreciate the geographic extent of where housing might be found for the various districts. Not only will this information allow for long-term, growth-centered planning, this insight will allow for the forest to better meet the needs of prospective employees. By harnessing the talent of these employees — the Chugach National Forest will continue to grow, prosper, and deliver scenic beauty to the people of Alaska.
