Teton Realty Blog

Teton Region Real Estate Market Stats, Articles & News

Summer 2024 Market Update

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Since this is technically a blog article and my market updates live in a separate section over at TetonValleyRealty.com, I’m going to treat this market update more like a blog post, just to convey my general feelings and sentiment of the market.

Residential

The residential sector of the market in Teton Valley and surrounding counties (Teton County, Wyoming and Lincoln County, Wyoming) all share similar attributes and challenges, though at different price points.

Dare I call any sector of the residential market “starter homes” (considering the average residential sales price in the Teton regional MLS is well over a million bucks) this sector of the market seems to be accumulating the most days on market and is faced with the greatest challenges. Why? Back to that average sales price. While the average sales price in communities like Teton Valley and Alpine are under 1m, they are still big numbers. Combined with interest rates which remain stubbornly high, we are beginning to see Summer price reductions. In other words, residential listings priced under 1.2m in the bedroom communities or maybe 2m in the Jackson area (which generally excludes the luxury/second home market), are faced with the most difficult sector of the market today. Despite this seemingly grim data for Sellers, inventory is still extremely limited, and opportunities that fit the bill for most consumers are still few and far between.

The luxury market in all sectors (once again, at different price points depending on the micro market) seems to still be churning along, if impacted by nothing other than increasing inventory, primarily due to more builders jumping into the game, or at least focusing on projects of this caliber. Many similar models I have sold for builders have crept up ever so slightly in terms of price, but the market seems to be fairly stable. Summer inventory does seem to be further increasing, which could have a slight impact as the market stabilizes from the short-term yet jarring effects of the Teton pass closing, and the speculation of long-term closure, now behind us. 

Condos and townhouses are certainly plentiful, but inventory is slowly being absorbed. While I felt we were at a high point in terms of supply towards the end of last year and into the Spring, it does seem that that market is stabilizing. 

Predictions; to summarize, it’s obviously still difficult to see where the general economy takes us with inflation seeming to cool but interest rates remaining stubborn. For those that have been waiting to jump in, the message from many of the lenders in the marketplace has been to jump in now while Sellers in the “starter home” price point are vulnerable, taking advantage of lower interest rates when a refinance is realistic. That sentiment may have been a little premature a year ago, but it does seem that inflation is cooling and rates are likely to soon decrease. The “covid craze” seems to be subsiding, and some sellers appear to be faced with, and accepting reality in that regard. I know that many Buyers are waiting for a correction, but from my perspective, I hear fewer that believe this is soon to happen than those that think it won’t happen anytime soon.

Land

I have long said that the land market seemed to have stabilized towards the end of 2021, with the tremendous gains capped by new inventory and market stabilization. I still see small spikes and valleys in those trends in specific areas, the Teton view corridor is a good example. Ample supply (though unusual in these areas) can reduce overall prices, while limited availability can have the opposite effect, but in an even more dramatic way. Other parcels with some form of unusual feature can also benefit from limited supply, such as industrial zoned land, land without covenants and restrictions, land with interesting terrain, water features, trees or otherwise have all seen greater increases. Some areas, however, have seen greater instances of stabilization or even a slowdown, particularly those that lack any unique aspects or reside in communities with strict guidelines that require more expensive builds. 

Construction

As an aside and in line with the last sentence above, construction costs have remained surprisingly resilient to cooling and inflation. While some materials have reduced in cost, others have increased. Subcontractors are showing no signs of slowing down in terms of cost increases, which tells me that there is still plenty of work on the horizon. Many local governments have been inundated with new custom and speculative bills and just like the huge cost increases in terms of construction costs keeping new projects at bay, the difficulty in obtaining building permits, combined with stubborn construction costs has kept new inventory from exploding. It’s frustrating for builders and investors, but it’s probably keeping the market under control at the same time.

Teton County Land Development Code Amendments – Workshop

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A workshop has been underway to redline several items in the Teton County Land Development Code (LDC). This review and workshop is ongoing, stay tuned. Please note that much of the information below is an interpretation of the March 12th Planning and Zoning meeting, always verify information with Teton County, Idaho and the most recently published Land Development Code. Just because items below are listed, does not mean that they will be amended. Items that were redlined in the review document (linked here) are in BOLD below.

Teton County has noticed grammatical errors in general errors from public and county staff. Two work sessions were held to review those items with the planning and zoning commission in January 2024 and the county commissioners in March of 2024.

– inaccurate numbers and citations
– table revisions edits in clarifications
– confusion as to when permits are needed
– beekeeping
– ADUs including ADUs in the IR zone (When the new land development code was passed a previous amendment was missed allowing up to two attached ADUs in the IR zone district
– application procedures, land division review and short plat errors
– scenic overlay changes

Notes on the most discussed topics are listed below.

Setbacks
A red line was made with respect to uncovered or unenclosed porches or debts awnings etc that may extend into a required front or side setback up to 2 ft or up to 6 ft into a rear setback. Previously unclosed patios, decks, balconies, porches and so forth were able to encroach into a side or rear setback up to 10 ft. This is likely to avoid issues relative to properties with small setbacks.

Beekeeping
Commercial beekeeping is now defined as 16 hives or larger and discussion about not requiring commercial permits for fewer than 16 hives. Further clarification on what defines a hive (a box, or a stack) was recommended.

Campgrounds
Campgrounds were further defined as campsites with individual water, sure, and or electrical hookups for 2 to 60 tents, recreational vehicles, cabin sites, or travel trailers.

Accessory Dwelling Unit, Attached
Redlines were added in the IR Zone district to accommodate two attached units as an ADU, a code update previously approved prior to the new code, but not included in the final revision to the new code, an inadvertent oversight. The maximum size of the ADU shall not exceed 1500 ft² for either one or two units. The applicant will need to provide verification of wastewater treatment system based on Teton counties septic capacity evaluation form. Applicant is responsible for any fees associated with reviews. ADUs may not be short-term rented in the IR Zone district.

Employee Housing
A controversial element suggested in the code was that the number of employees per unit shall not exceed the number of bedrooms. Planning and zoning commissioners argued that this standard should be limited by fire code requirements or square footage requirements by other entities. *This seemed to be of the greatest concern for the planning and zoning board. Discussion was made to strike this and revert to the septic capacity limits.

Application Subject to Final Decision by the Administrator
As noted below, Scenic Corridor Reviews was added to the list of items that may be at the discretion of the Administrator, more on this is reviewed below.
Temporary Uses
Limited Uses
Agricultural Land Divisions
Sign Permits
Scenic Corridor Reviews
Boundary Line Adjustments, and
Modifications to a Temporary Use

Temporary Uses – Expiration and Revocation
Temporary use permits may not be used in place of a special use permit for an ongoing use – effectively limiting anything more than 180s consecutive days to a special use permit.

Short Plat Land Divisions
The review procedures for the short plat land division process were changed

Preliminary Plat Review
A review criteria was added stating impacts presented from any studies requested related to natural resource overlays, economic impacts, or traffic studies.

Expiration
The application for final plat must be submitted within (previously 36) 24 months of the date of the BOCC’s final decision on the preliminary plat.

Floodplain
Floodplain requirements were amended to be aligned more closely with FEMA requirements.

Grading and Drainage
Amendments were made to the grading and drainage section to add requirements but also intended to reduce the number of permits for special work running through the county. Concern about existing code language including requirements for grading and drainage permits when driveways are elevated more than 6” from existing grade were questioned by the Planning and Zoning Commissioners. Development of an agricultural exempt building, as determined by the building official may now require a grading and drainage permit was also in question.

Riparian Buffers – General Development Standards
Additional language was added to general development standards for any development activity within riparian buffers.

Wildfire Hazard Areas
Small modifications to fuel brakes were discussed and Planning and Zoning Commissioners suggested professional opinions before implementing further changes.

Scenic Resource Protection
*This was an important aspect of my consideration based on special requirements for those close to scenic corridors including State Highways and Ski Hill Road. A general statement was added in applicability that Permits to develop within the scenic corridor may be approved administratively if all development standards are met. At the discretion of the planning administrator, any applications that do not fully meet the standards will require a public meeting to review the application and the planning and zoning commission who will act as the decision-making body.

Submittals
Additional submittals in the section were added for site plans, applications, including the latest recorded deed to a property, affidavits of legal interest if applicable, and landscaping plan including height of landscaping and plant species.

Summary
The Planning and Zoning moved to recommend approval with conditions with a condition to strike the redline limit on employee housing occupancy and continue discussions on defensible space and grading and erosion.

Wetland: What Does It Mean and How Can It Impact My Property?

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***Article Update: Kent Werlin is the Senior Wetland Scientist with Biota Research and Consulting in Jackson, Wyoming. Kent was kind enough to edit my article and provide updated, more accurate information. My disclaimer stands (do your own research), and see the updated article below:

Wetlands are often confused with floodplains and flood zones. Flood zones are not always wetlands, and wetlands are not necessarily located in floodplains, though there are circumstances where either could be true. Flood zones can occur in areas next to large bodies of water or runoff areas and are often considered higher risk when it comes to flooding. However, any property can flood, not necessarily only properties in a floodplain.

Wetlands are regulated by the U.S. Army Corps of Engineers and Environmental Protection Agency under the Clean Water Act. To be considered a “wetland”, an area must meet all of the following  criteria:

1) Wetland Hydrology: To have wetland hydrology, an area must be at least saturated in the upper 12 inches of the soil profile for a period of 14 days during the growing season in 5 out of every 10 years. Active monitoring of hydrology via the use of shallow groundwater monitoring wells and/or wetland hydrology indicators are utilized by wetland professionals to determine the presence of wetland hydrology. These indicators include the presence of surface water, saturation, geomorphic position, oxidized rhizospheres (root channels), a dominance of wetland vegetation, and others.

2) Wetland (Hydrophytic) Vegetation: roughly a quarter of the plant species in the United States grow in wetland areas. To be a wetland, an area must be dominated by facultative or wetter plant species based on the National Wetland Plant List, which designates plant species as upland, facultative upland, facultative, facultative wetland, or obligate wetland. These are described below:

  • Upland – plant species that occur in non-wetland areas 99% of the time and do not indicate wetland conditions (e.g. sheep fescue, sagebrush, western wheatgrass)
  • Facultative Upland – plant species that occur in upland environments 75% of the time and in wetlands 25% of the time (e.g., orchardgrass)
  • Facultative – plant species that occur in wetland environments 50% of the time and in upland environments 50% of the time (e.g. Kentucky bluegrass, common timothy, and meadow foxtail)
  • Facultative Wetland – plant species that occur wetland environments 75% of the time and in upland environments 25% of the time (e.g. Baltic Rush, reed canarygrass)
  • Obligate Wetland – plant species that occur in wetlands 99% of the time. These species are generally indicative of wet areas. (e.g. beaked sedge, Booth’s willow, hardstem bullrush)

3) Wetland Soils: Wetland soils are often referred to as hydric soils. These soils can generally be analyzed by digging a 20-inch deep hole and looking for hydric soil indicators that indicate a high water table and/or periodic saturation within the upper horizons of the soil profile. These indicators include an abundance of organic soil matter, oxidized iron (rust colored) or manganese (purple) concentrations, and others.

Can you build in Wetland?

Wetland areas do require special permits and approvals. But first, they must be identified as wetland, usually by way of what is referred to as a wetland or aquatic resource delineation performed by a properly trained wetland consultant (such as the co-author of this article, Kent Werlin, the Senior Wetland Scientist with Biota Research and Consulting) and following the wetland delineation protocol approved by the Army Corps. Wetlands in Teton County are subject to both federal and local (county) regulations which differ in their requirements.

If a property in Teton County, Idaho shows indications of wetland presence based on the nationwide National Wetland Inventory (NWI) mapping (can be viewed via the Teton County GIS Mapserver), the county will generally require a delineation before approving subdivision or issuing grading or development permits for the subject property. Under current county regulations (Teton County Land Development Code 2022), the county requires either a 50′ or 100′ development setback on wetlands, depending on the level of analysis conducted. If a site-specific wetland delineation is conducted, the county will place a 50’ development setback on all wetlands delineated by a wetland professional and approved by the Army Corps. If there is no site-specific wetland delineation conducted, then the county falls back on the NWI mapping and requires a 100’ setback on NWI mapped wetlands.

At the federal level, the Army Corps requires a permit application for the placement of fill material (e.g., rock, gravel, concrete, soil, etc.) in jurisdictional wetlands. The Army Corps has a suite of streamlined Nationwide Permits for activities that impact up to 0.5 acres of wetland. If wetland impacts exceed 0.1 acres, then the Army Corps requires a Compensatory Wetland Mitigation Plan that involves the creation of new wetlands or enhancement of existing wetlands to compensate for development-related wetland losses.

A recent supreme court case (EPA v Sackett) decision has put the jurisdictional status of some wetlands at the federal level in question. The Army Corps is in the process of modifying their technical guidance for determining jurisdictional status based on the outcome of this court case and should be issuing guidance in the coming months. While it may be possible to impact wetland areas with the proper permits, it is important to remember the reason that these regulations exist….to protect wildlife, habitat, and waterways, often considered a key cornerstone of Teton Valley’s natural beauty.

END UPDATED ARTICLE – Special thanks to Kent Werlin, biotaresearch.com

Disclaimer: As always, I need to start out this article with a disclaimer. I know enough about many of these topics to be dangerous – which is dangerous. Always seek the advice of appropriate professionals as this information is subject to change as well as my own interpretation. I don’t often go back and update old articles, so I’ll leave this here.

Wetland should not be confused with floodplain. Flood zones are not always wetland, and wetlands are not necessarily in floodplains. Flood zones normally occur in areas next to bodies of water or runoff areas and are often considered higher risk when it comes to flooding. However, any property can flood, not necessarily only properties in a floodplain or a wetland.

How to Identify Wetland

Wetland can occur even in areas not directly adjacent to a body of water and is usually determined by three primary factors:

1) Hydrology: Hydrology indicators can include the presence of surface water or wet soils as determined by evidence or review by a wetland professional utilizing different tools or testing to understand the presence of water.

2) Vegetation: Roughly a quarter of the plant vegetation species in the United States grow in wetland areas. Plant species can be classified in a number of different ways as identified below in order of wet to dry:

  • Obligate Wetland (usually very indicative of wetland areas) ie Sedges (which have triangular, sharp stems) and Willow
  • Facultative Wetland (usually occur in wetlands, but occasionally found in non-wetlands) ie Horsetail, Baltic Rush
  • Facultative (equally likely to occur in wetlands or non-wetlands) Meadow Foxtail, Timothy, Brome, Bluegrass
  • Facultative Upland (usually occur in non-wetlands, but occasionally found in wetlands) ie Potentilla
  • Obligate Upland (almost always occur only in non-wetlands) ie Sheep Fescue

3) Soils: Wetland soils are often referred to as hydric soils. These soils can be analyzed by digging a hole (usually 12-18 in deep) and looking at indications of saturated soils that usually show indications of oxygen depletion. This can be evidenced (essentially) by rust in the soils and the coming and going of water, creating oxidation. Oxidation can be due to iron and is usually identified by orange flecks in the soil or manganese which will reveal itself with a purple color.

Can you build in Wetland?

Wetland areas do require special permits and approvals. But first, they must be identified as wetland, usually by way of what is referred to as a Wetland Delineation performed by a properly trained wetland Consultant.

If a particular property shows indications of wetland, Teton County, Idaho will generally require a Wetland Delineation. They have requirements of 50′ or 100′ setbacks, depending on the delineation findings. If the project looks like it will encroach within 50′ of wetlands as indicated by the Delineation, the county may require a Jurisdictional Determination (JD) from the Army Corps of Engineers. If there are any questions on a project, despite setbacks, the Teton County Planning Staff may still send the information to the Corps for review. A JD is the process of Determining whether areas indicated as wetland are regulated by the U.S. Army Corps of Engineers under section 404 of the Clean Water Act and/or Section 10 of the Rivers and Harbors Act.

If a property is determined to be wetland, with the proper permits it may be possible to impact up to 0.1 acre of wetland for driveway, septic, and a home site. If wetland is mitigated to another area, these improvement areas can be increased to 0.5 acres.

Wetland areas can make tremendous home sites, but it is important to remember the reason that these regulations exist in order to protect wildlife, habitat and waterways, often considered a key cornerstone of Teton Valley’s natural beauty.

Sources:

Teton County Zoning, what you need to know

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Oftentimes I receive questions from prospective buyers, (sometimes sellers) as to what they can do with their property, or perhaps how they can advertise their property. When it comes to the city municipalities, they have their own set of zoning regulations and Zoning Maps such as the cities of Driggs and Victor. Each Zone has its own set of code requirements, and you can navigate this information relatively easy on each city’s respective website. The cities, however, take up a very small portion of the usable land in Teton County. The vast majority of private land is in the county itself.

At first glance, the county has only a few zones when compared with Driggs or Victor. In a nutshell, these are agriculture, commercial, manufacturing, public lands and the city areas of impact. Of this acreage, only a very small amount of the county contains commercial or manufacturing zoning, the vast majority is agriculture, with 2.5 to 20 acre density requirements. As long as there isn’t anything abnormal going on, you can subdivide acreage through the formal subdivision process in these areas as long as the finished product meets the density requirement in that zone. Each parcel can then have a house and a guest house, as well as a well and septic system, assuming it meets Department of Health requirements. Each parcel can water up to 1/2 acre per Idaho’s water regulations.
So, the question is, and the point of this article, can you do anything on your agricultural zoned property other than a single family residence with guest house (or of course agriculture)?
The answer is yes, as long as you conform to the land use requirements in the county. In a sense, the name of the zoning is a bit deceiving. It leads most to believe that only agriculture is allowed, and some even question the ability to have a home. Since we talked about that above, let’s talk about some of the other allowed, or allowable uses.
The County’s existing land use regulations are split into three categories. They are:
  • Permitted by Right
  • Permitted with Conditions
  • Permitted with Conditional Use
In a nutshell, if you are trying to do something that is permitted by right, you don’t have to ask in most cases. If it is permitted with conditions, obviously you need to make sure that the conditions are met, and the same rules apply. If it is permitted with a conditional-use permit, there are special requirements that vary based on the nature of whatever it is you are trying to do. Some interesting ones; a home daycare is permitted for up to 6 children, and 7 to 10 children is permitted with conditions. An aviation field is permitted in agricultural zones with a conditional-use permit. A church, or place of worship can be permitted with a conditional-use permit. The list goes on.
Many sectors of retail, manufacturing, and even some residential types are still limited to commercially zoned areas such as convenience stores, bakeries, bars, beauty shops, golf courses, grocery stores, hotels, restaurants – you get the idea. In a way this makes sense, and most of these services would make more sense located within city limits anyway.
You can find the County’s land use Matrix table beginning on page 29 of title 8 of the Teton Valley code, zoning regulations. That link is below.
Teton Valley Code (see Chapter 8)

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