From hospitals to hospitality, housing costs affect Upper Valley workforce

Rising housing costs in the Upper Valley have made it increasingly difficult for workers to remain rooted in the community, prompting local leaders, nonprofits and employers to seek solutions.

“The shortage of affordable housing has become one of the biggest challenges we face in both recruitment and retention,” said Cascade Medical CEO Diane Blake.

According to Blake, the medical center has had providers who were interested in joining the organization, but decided to not move forward because they didn’t feel like they could realistically afford to live in the community. The significant number of employees who commute from down valley, she added, spend more in fuel costs and wear and tear on their vehicles, which can affect their decision to stay with the organization long-term.

“Many of these employees would love to live closer to where they work and serve, but the current housing market has made that difficult for working families,” said Blake. “That is hard, because providing exceptional care for our community starts with supporting and retaining the people who make that care possible.”

According to Cascade School District Superintendent Dr. Tracey Edou, a large portion of staff also commute from outside the district, which spans from Stevens Pass to Dryden. While Edou said she appreciates the broader regional identity of the Wenatchee Valley, she also sees benefits when school employees are able to live and spend time in the communities they serve. When employees live in the district, there’s more opportunity for them to interact with students outside of the classroom, whether it’s at an afterschool event or the grocery store.

“One thing that's really special about this district is that students are known as individuals, so they're not just a kid in the classroom,” said Edou. “Having people know the child outside of school helps build the relationship inside of school.”

Edou said she would also like to see more housing options for early career professionals — such as a first-year teacher – available in the Upper Valley. 

“If we can support early career professionals, a lot of times these are people who are going to have families of their own, and so it helps with keeping kids in our communities,” said Edou.

In Leavenworth specifically, property values have substantially outpaced median incomes, with land values increasing by 143 percent since 2010, while the median household income only increasing by 68 percent, according to the city. Just under half of the households were renters in 2023, with rents 6 to 8 percent higher than in other communities in the county, according to the Housing Action Plan.

According to Upper Valley MEND Executive Director Kaylin Bettinger, the Upper Valley’s housing stock consists largely of high-end homes and older properties that often require costly repairs and maintenance, making both renting and homeownership difficult for many low- and moderate-income residents. While new apartment construction has helped ease pressure on the market, housing costs remain high.

Oftentimes, Bettinger said, many younger residents are able to afford living in the area by having roommates, but get priced out when they reach a point where they no longer want to have roommates, or are ready to start a family.

“If people that you know — teachers in your kids' school, or nurses at the hospital that you go and see, or friends that you have — if they're really struggling with housing, and they end up getting priced out of the area and having to move, it sort of just impacts the morale of the community overall,” said Bettinger.

According to owner Hans Mulders, the Obertal Inn has adapted to higher costs of living by offering competitive pay and benefits to its workforce, including higher minimum pay, retirement contributions, paid vacation and emergency loan assistance. In total, the benefits cost the inn about $250,000 per year. While the decision reflects his business’s values, it has also created a more stable workforce, said Mulders.

Still, most of the inn’s employees commute from outside of Leavenworth, said Mulders, with one Leavenworth employee utilizing Upper Valley MEND’s affordable housing program.

“We were a substantial donor to that program because we recognize the need and it is nice to actually see one of our employees benefit from that,” said Mulders.

Upper Valley MEND has been working on securing affordable housing in the Upper Valley since 2001. The rental program has 31 units within Leavenworth city limits. It also has 20 homes under its affordable homeownership program, with two more duplexes on the way. 

While change can be slow, Bettinger is hopeful that meaningful progress will continue to be made with collective, ongoing efforts by both private and public entities. Developers help with adding inventory, while cities and counties can make policy changes that encourage diversified housing options. Then, nonprofits can fill gaps with support.

“The government, the market developers, and nonprofits kind of all have to work together to create a whole bunch of different options, because housing is such a personal thing for people, that having options kind of across the spectrum is really important,” said Bettinger.

In recent years, the City of Leavenworth has updated zoning and building codes and invested in pre-approved plans to encourage smaller, infill housing development. Its 2026 comprehensive plan continues to prioritize expanding affordable and workforce housing and increasing housing diversity and density.

“Development is going to happen in Leavenworth,” said Bettinger. “I think if we're not careful and we're not intentional about it, that housing all just ends up getting gobbled up by the folks who can afford more, and the workforce gets left behind.”

Taylor Caldwell: 509-433-7276 or taylor@ward.media