This October, the Prince William Sound Economic Development District (PWSEDD) will invite a group of housing developers to Cordova to showcase the potential for housing developments in the region — a move meant to address Cordova’s need for increased housing options.
A PWSEDD housing analysis report from December 2023 — funded by the district’s advisory partner the Minnesota Housing Partnership and prepared by the McKinley Research Group — outlined the need for increased housing in the Cordova area.
“To meet the needs of current residents wanting to move into different housing and those interested in moving to Cordova but struggling to find housing, Cordova will need approximately 20 additional single-family homes with two to four bedrooms,” the McKinley report summarizes.
The report not only included analysis into the housing challenges facing Cordova, but also Chenega, Tatitlek, Valdez, and Whittier.
“Housing is an economic development issue because you can’t do all of the things you would like to do for economic development if you don’t have housing for people to live in in your community,” said Kristin Carpenter, the executive director of PWSEDD, which she joined in April 2020. “It’s a nationwide issue right now.”
Carpenter told The Cordova Times PWSEDD is planning on holding a homebuilder and developer site visit on October 14-15 to bring builders and developers to town to show them there are properties available for building and development in Cordova. The site visit would focus on both Cordova and Valdez, and is one strategy for addressing Cordova’s housing shortage.
According to Carpenter, Cordova actually has a decent amount of developable land. She cited lots in the area that currently have no residents or host dilapidated buildings, and acreage owned by the city and university system that could be developed.
“It’s definitely a myth that needs to be debunked,” she said about the perception that Cordova isn’t buildable.
The December 2023 report laid out a bleak prognosis about Cordova housing, but Carpenter says there is a way forward.
The city’s housing shortage is affecting recruitment and community growth, Carpenter said. Many people — especially those with families — struggle to find affordable homes, which hampers efforts to build local industries and attract new residents, she said. Without sufficient housing options, people may be forced to move, impacting long-term growth and stability.
Cordova is grappling with a housing shortage as the city’s population growth diverges from regional and state trends: Cordova’s population grew 9% between 2013 and 2022 while the statewide population shrank by 0.2%, according to the report. Local residents, whose median age (40.1) is older than the state median (36.5), are facing increasing difficulties due to a lack of available and affordable housing. In 2021, the median annual household income in Cordova was 3% lower ($77,667) than the statewide median and 12% lower than the Chugach Census Area median.
Cordova’s housing vacancy rate is lower than both regional and statewide averages, and of the approximately 200 vacant units in Cordova in 2021, 38% were held vacant for seasonal, recreational, or occasional use, according to the report.
Anecdotal evidence from McKinley’s interviews suggests a significant number of individuals interested in relocating to the area are unable to do so due to insufficient housing. The survey indicates that more than half of Cordova residents and 60% of Eyak tribal members are aware of individuals wanting to move to Cordova but unable to find housing. About 38% of Cordova respondents told McKinley they are likely to move away within the next five years, with 13% finding it very likely. Similarly, 41% of Eyak respondents feel the same way. According to the report, one-third of Cordova respondents said they were looking for a new home in Cordova.
Additionally, one-third of Cordova residents are cost-burdened by housing, spending more than 30% of the household’s combined monthly income on it. With an average home price of $375,000, those earning less than 151% of the average median income would find it unaffordable.
Compounding the issue is a shortage of construction labor and a lack of property development, exacerbated by the absence of building inspectors, which hampers enforcement of building codes. Respondents to McKinley’s survey frequently mentioned the number of deteriorated properties in Cordova that are not usable as housing — a point Carpenter also brought up as an area that can be improved and leveraged to create more housing options. More than half of the residents who responded to the survey reported issues like mold, heating and plumbing problems in their current housing.
Carpenter says the current problem has been building over time: Fewer units coming onto the market combined with a deteriorating housing stock. As 75% of homes in Cordova were built between 1960 and 1999, the housing stock that is available is aging.
And Cordova residents feel this. Ninety-one percent of respondents rated housing availability in Cordova as poor, and 87% rated housing affordability as poor.
Carpenter said that around town there are privately owned, empty homes that need renovation or demolition. To address this, she proposes approaching homeowners and providing support in making a sale deal attractive to both owners and developers. By selling several lots together, developers can be incentivized to invest in new housing projects, potentially streamlining the development process.
Carpenter is clear that she acknowledges and does not dismiss the cost of developing housing.
To address these challenges, the report suggests that Cordova will need to focus on developing affordable rental units and single-family homes. Increasing the housing supply, particularly through subsidized development, is crucial for alleviating the current housing situation and improving living conditions for Cordova’s residents, the report says. As the PWSEDD spans the entire Sound, it has created a PWS Housing Working Group to help provide information on each community and brainstorm strategies that work both regionally and locally. The Housing Working Group is working to find solutions to housing access issues across the Sound, including the proposed site visit in mid-October.
Additional future endeavors that PWSEDD is considering to address the housing shortage include supporting Chenega in applying for an Indian Housing Block Grant from the U.S. Department of Housing and Urban Development; pursuing funding opportunities available for education, city and healthcare professionals in rural communities; pursuing congressionally directed spending allocation; and setting up a locally-managed housing trust fund.
Carpenter said she encourages locals to reach out to PWSEDD with any questions, suggestions, or requests to be connected to resources for their business.
“We’re here to be a resource, we love to hear from people,” she said.
