State of the Development: The Cottonwoods

There is a distinctly local vibe to the hallway conversations between neighbors at The Cottonwoods. “It feels like a real community,” says Lauren H., one of the new homeowners in the development. “I’ve met a bunch of neighbors, and we all have some commonalities and shared aspects to our life stories. It does feel good to have a little slice of Steamboat that is finally ours,” she says. Lauren is in good company in her new place – nearly 90% of the units sold have been purchased by first-time homebuyers. She and her neighbors are all members of the local workforce (or locally retired), spanning a wide range of sectors and jobs: health care workers, nonprofit staff, civil engineers, firefighters, ski patrollers, City and County staff, school district employees, and the list goes on.

The Cottonwoods at Mid Valley marks the first major for-sale affordable housing project in Steamboat Springs in nearly 20 years, offering 86 deed-restricted condos upon its opening in the spring of 2026. With major support from $10M in short-term rental tax funding – plus YVHA internal funds – the price of units has been lowered to maintain affordability and allow the local workforce to purchase at a discount of nearly 50% off market rates. Qualified buyers must meet local employment requirements, remain within income limits (up to 140% of the Area Median Income/AMI or $135,940 for a single-earner household), and must not own any other property.

From its inception, this project was meant to support upward and lateral mobility amongst local homebuyers, while targeting a broad range of workforce-led households. Units were therefore assigned a range of AMI (Area Median Income) categories, from 100% to 140% (currently $97K-$136K for a single-person household). 34% of all units are designated at 100% AMI, 24% of units at 120% AMI, 9% at 130% AMI and 33% of units at 140% AMI. The deed restriction criteria do not include an asset cap for buyers – eligibility is not limited based on a household’s assets, provided other requirements are met. In relation to this, a household’s purchasing power can often allow them to “buy up” above their current income level. An additional boost to local homebuyers (at The Cottonwoods and elsewhere) is the availability of multiple down payment assistance programs administered by YVHA that provide up to $20K in low-interest loans, easing those initial costs for the buyer.

The Cottonwoods’ deed restriction (and deed restrictions in general) helps to maintain perpetual affordability of the development while balancing the need for homeowners to gain value from their investments. At the Cottonwoods, this restriction entails either a maximum of 2% annual appreciation of the unit’s value or 50% of the average annual local AMI increase during the time of ownership, whichever is greater. YVHA’s approach to deed-restricted homeownership has been informed by extensive community engagement and feedback gathered through surveys and conversations over many years. This input has reinforced the importance of creating housing opportunities that can better support community members as their circumstances and needs evolve.

“One consistent theme we have heard from residents across the income spectrum is that they can become ‘stuck’ in their current housing situation when there are not adequate housing options available at different price points and for different stages of life,” says Alyssa Cartmill, YVHA’s Sales and Asset Manager. “In a healthy, functioning housing market, households should have opportunities to move into a larger or more expensive home as their income and equity grow. Conversely, when circumstances change, they should also have the ability to transition into a smaller or more affordable home that better aligns with their current needs.” For example, a household may require a larger home while raising children but later seek to downsize after the children move out, or as the household enters a different stage of life. “Creating greater housing mobility benefits the broader community as well as individual households,” says Cartmill. “When a household can transition into a home that better fits its current needs, it creates an additional opportunity for another household to move into the home that has become available.” Creating opportunities for this natural progression helps maximize the use of our existing housing stock and allows more households to find homes that are appropriate for their current stage of life.

With 61 of the 86 units now closed (71% of the development), the project has made exceptional progress since receiving its Temporary Certificate of Occupancy in late March 2026. Half of the units closed within two months of the first closing in mid-May, representing a strong pace of sales for a residential development of this size. This level of absorption demonstrates a strong demand for affordable, for-sale homes, and the effectiveness of the project’s workforce housing focus. In addition to the 61 completed closings, 11 units are additionally under contract, with 14 remaining units for allocation on a first-come, first-served basis. Overall, the project continues to demonstrate strong market demand, moving along a course to full occupancy and completion of the development.

All data aside, perhaps the truest measure of success is the growing sense of place that has started to fill the Cottonwoods as homes are purchased and brought to life. Bill M. is one of the newest homeowners in the development, a local of nearly 20 years who now owns his home for the first time. “It’s the community, for me,” says Bill, summing up the main reason he has stayed in Steamboat despite the high cost of living. “It was a really intense process for me to work through the Cottonwoods pre-approval and lotteries, but YVHA was an incredible resource,” he says. He notes the friendliness of neighbors – and the commonalities they share as working locals throughout the development. “There are a bunch of families and people all moving into the Cottonwoods together, and there is definitely a sense of camaraderie,” he says. “It’s a really warm environment.”

Learn more about The Cottonwoods, and view remaining units for sale.