{"id":430025,"date":"2026-01-26T02:27:18","date_gmt":"2026-01-26T02:27:18","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/430025\/"},"modified":"2026-01-26T02:27:18","modified_gmt":"2026-01-26T02:27:18","slug":"durangos-uneven-economy-leaves-lower-income-residents-behind","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/430025\/","title":{"rendered":"Durango\u2019s uneven economy leaves lower-income residents behind"},"content":{"rendered":"

Economists say policy choices reflect the kind of community people want<\/p>\n

<\/p>\n

Grocery prices are high and they don\u2019t appear to be going down any time soon. Emily Egolf, with Durango Natural Foods Co-op, assists Jennifer Erickson on Friday after she finished her grocery shopping at the store. (Jerry McBride\/Durango Herald)<\/p>\n

<\/p>\n

Working Americans are struggling with the rising cost of living \u2013 and communities like Durango may be hit even harder, according to Fort Lewis College economics professor Nathanael Peach.<\/p>\n

Grocery prices are expected to keep rising, and housing remains unaffordable for many. Increases in La Plata County sales taxes and higher water and sewer fees in Durango \u2013 though slight overall \u2013 add pressure for those living paycheck to paycheck.<\/p>\n

Grocers, economists and real estate agents say Durango\u2019s economy is feeling strained \u2013 but some residents are hurting more than others.<\/p>\n

Peach said Durango has a K-shaped economy: Higher-income earners \u2013 the upper leg in the \u201cK\u201d \u2013 face little trouble with rising costs, while lower-income earners \u2013 the lower leg \u2013 struggle with groceries, housing, credit card debt and more.<\/p>\n

Data suggests consumer spending remains high, he said, but that mostly reflects higher income earners. Lower-income earners haven\u2019t seen the type of income growth that would offset the higher cost of living, he said.<\/p>\n

The U.S. suffered a \u201ctremendous shock\u201d during the COVID-19 pandemic, and several effects linger.<\/p>\n

The country experienced its highest rate of inflation in decades after COVID-19. While the rate has slowed, 2025 ended with a 2.7% rate, he said.<\/p>\n

Just because inflation is slowing doesn\u2019t mean prices are falling. He compared it to mountain climbing: High inflation means a steep slope, but even low inflation still means climbing.<\/p>\n

\u201cWe see this in the grocery store front-and-center,\u201d he said. \u201cMaybe a bag of chips: The price isn\u2019t going up anymore, but it\u2019s still considerably more expensive than it was even a couple of years ago.\u201d<\/p>\n

Grocery prices expected to continue climbing<\/p>\n

Mads Root, assistant general manager at Durango Natural Foods Co-Op, said some categories of groceries have fluctuating prices, but prices generally continue to rise.<\/p>\n

Small businesses like the co-op can\u2019t just eat lower margins and keep prices low when their costs go up like corporations can, he said.<\/p>\n

<\/p>\n

Curt Brown shops for groceries at Durango Natural Foods Co-op on Friday, passing up on the asparagus at $11 a pound, saying that was too pricey for his taste. (Jerry McBride\/Durango Herald)<\/p>\n

<\/p>\n

\u201cWe\u2019re a little bit more responsive than you might see from our competitors, and that\u2019s typically because we need our staff to be able to afford to live in this town, which is a pretty difficult thing,\u201d he said.<\/p>\n

He said Durango Natural Foods Co-Op is best known for its deli and especially its produce. Dairy products, for example, haven\u2019t had very notable price increases. But products like berries and avocados are a different story.<\/p>\n

The co-op locally sources 25% to 30% of its produce throughout the year, he said, and even more so when locally grown produce is in season.<\/p>\n

Sourcing locally does raise prices \u2013 a locally grown head of lettuce in the summer might cost $3.99 when an outsourced head of lettuce from California might cost $2.99 \u2013 but it\u2019s worth it to keep local dollars circulating locally, he said.<\/p>\n

Bananas and avocados, of course, must be outsourced because they can\u2019t be locally grown, he said.<\/p>\n

He said the co-op is feeling the strain from tariffs and supply chain issues like many other businesses. Warehouses are struggling to staff their facilities. The demand for more food is rising in communities like Durango, but sometimes there aren\u2019t enough trucks delivering enough food to meet that demand.<\/p>\n

\u201cIt\u2019s just about who\u2019s getting what from who, for how much at which time, and that seems to be constantly changing,\u201d he said.<\/p>\n

Root said he expects grocery prices will continue to rise.<\/p>\n

<\/p>\n

Coffee prices have steadily increased at Durango Natural Foods Co-op on Friday as well at other retailers. In a K-shaped economy, higher income earners aren\u2019t necessarily impacted by higher groceries. But lower-income earners struggling to make ends meet month-to-month are more likely to feel the burn in their pocketbooks. (Jerry McBride\/Durango Herald)<\/p>\n

<\/p>\n

Grocers with \u201crazor-thin\u201d margins will continue to bolster their prices in line with increasing costs, he said.<\/p>\n

\u201cEverything\u2019s just kind of so back and forth right now, with supply chain issues and everything\u2019s been a little wacky,\u201d he said. \u201cEven before this new administration, just post-COVID, everything has been just up and down and up and down \u2013 but overall, just going up.\u201d<\/p>\n

Housing market remains steady<\/p>\n

A glance at multiple listing service statistics for 2025 released by the Durango Area Association of Realtors on Wednesday gives the impression that the median home price in Durango fell by 8.5%. But it\u2019s a bit more complicated than that, said Heather Erb, president of the DAAR Board of Directors.<\/p>\n

<\/p>\n

Real-estate prices in Durango and La Plata County have steadily increased the past years with this Durango home Friday priced at $1.25 million. Heather Erb, president of the DAAR Board of Directors, said the median home price in Durango fell by 8.5% in 2025 compared with 2024. But it\u2019s more complicated than the statistics might suggest. (Jerry McBride\/Durango Herald)<\/p>\n

<\/p>\n

One hundred twenty-five in-town Durango homes sold at a median price of $850,000 last year, down 8.5% from 114 homes that sold at a median price of $928,500 in 2024.<\/p>\n

Two hundred seventy-seven country homes in the Durango area, however, sold for a median price of $930,000 last year, compared with 283 country homes selling for a median price of $845,000 in 2024.<\/p>\n

That indicates the housing market is \u201ccruising right along\u201d at a steady pace, Erb said.<\/p>\n

\u201cIt\u2019s real hard to tell \u2013 unless you have the same house that sold two years in a row \u2013 whether the prices are going up or down,\u201d she said. \u201cBut yes, the in-town prices do reflect the median went down 8.5% if you\u2019re just looking at those numbers.\u201d<\/p>\n

Erb said there is more housing inventory than there was during the pandemic. At that time, there was an influx of people fleeing the cities for rural communities such as Durango. That resulted in people buying up homes, reducing available housing stock and driving up prices.<\/p>\n

Just eight fewer homes were sold in 2025 than in 2024, but there are now more homes on the market, she said. That means sellers can\u2019t get away with \u201cinsanely high\u201d prices like they had during the pandemic.<\/p>\n

\u201cThe supply and demand is sort of equaling out, and you\u2019re seeing more and more homes on the market,\u201d she said. \u201cThere\u2019s more affordable housing \u2026 and it\u2019s going to help renters and owners alike that there\u2019s more to choose from. That\u2019s a much more resilient community.\u201d<\/p>\n

The Durango area still has a way to go, though. It still lacks the inventory it had pre-pandemic.<\/p>\n

\u201cThere needs to be more on the market for people to have a decent amount of homes to choose from,\u201d she said. \u201cWe\u2019re always trying to achieve that balanced market, instead of it being a seller\u2019s market or a buyer\u2019s market. Balanced markets are good.\u201d<\/p>\n

There are other forces at play that should be considered too, she said. Insurance costs and homeowners association fees have skyrocketed, impacting people who live in condos, town homes and apartments.<\/p>\n

She said costs are rising for tenants, landlords and homeowners alike, with insurance becoming harder to obtain because of wildfire risks. Landlords are feeling forced to raise their rents in order to break even, and people\u2019s ability to afford housing continues to be impacted.<\/p>\n

Tough conversations<\/p>\n

While Durango\u2019s economy is K-shaped, it\u2019s also a sponge, said Audrey Royem, economic development coordinator for Region 9 Economic Development District of Southwest Colorado.<\/p>\n

Money flows into Durango through tourism, remote worker incomes and second home wealth, she said. Workers may be earning more wages, but those wages are mostly spent on housing.<\/p>\n

In a \u201cnormal\u201d economy, she said, wage earners typically spend about 30% of their income on housing. But Durango workers are currently spending upward of 60% on housing.<\/p>\n

\u201cThese strains on the household income show up in our local economy. People, they\u2019re working just as much but they feel poorer,\u201d she said. \u201cThey\u2019re not able to buy the goods and services that they would like. Businesses can\u2019t retain staff. People have to move more regularly. Maybe they come here with hopes and dreams, and those are squashed. Employers therefore can\u2019t expand.\u201d<\/p>\n

Housing is key to addressing the present cost-of-living problem, she said, because lack of affordable housing creates family and community instability. People have to move and community volunteerism declines with people\u2019s lack of free time. Schools and health care struggle when teachers and nurses can\u2019t afford to live where they work. The economy becomes brittle.<\/p>\n

Royem said the community needs to address tough questions about its values.<\/p>\n

\u201cIf we can\u2019t afford to live here, what kind of a community, what kind of a life are we actually creating?\u201d Royem said.<\/p>\n

Does Durango want to be an \u201cenclave\u201d for people with very high incomes, Peach asked. Or does it want to be a democratic or egalitarian community, where some people will surely earn higher incomes than others, but there\u2019s a place for everyone to make a living for themselves.<\/p>\n

Politics and policies will reflect the answer, he said.<\/p>\n

\u201cWhat do we want our community to look like, what types of people ought to be able to live here are things worth thinking about and debating and discussing,\u201d he said.<\/p>\n

cburney@durangoherald.com<\/p>\n

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