In Bar Harbor, houses and apartments once available for year-round rental now largely go for short-term vacation rentals. Employers are developing solutions.
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Anil and Nurten Akturk have been at the Jackson Laboratory in Bar Harbor since February 2018.
Anil is an associate research scientist and Nurten a research assistant. Originally from Turkey, they moved to Bar Harbor from Ithaca, N.Y.
At the time, Bar Harbor residents were grappling with a growing shortage of affordable housing to buy and rent, a trend attributable to the conversion of units to the lucrative vacation rental market.
The Akturks were fortunate. Friends who moved to Bar Harbor before their arrival were able to find a house for them close to the lab.
“It was more on the affordable side, but it was falling apart,” says Anil.
With the benefit of living within walking distance of the lab, the couple, with their young child and a dog, stayed at the house for over four years -- until their landlord informed them the house would be sold and they needed to find somewhere else to live.
The lab had just announced it would be building a workforce apartment complex on land it owned within walking distance. When the lab opened applications for the first 24 units, the Akturks leapt at the opportunity.
“Perfect timing,” says Anil.
The complex opened Sept. 1, complete with a small playground, lawns and neatly tended walks.
The family couldn’t be happier.
“Coming for a house that was falling apart to a brand-new house, after a month I still feel like I’m living in an Airbnb,” says Anil.
“It seems like the solution is really working,” says Nurten. “It’s always warm and everything always works. We love it.”
Solutions that work
Solutions addressing lack of housing are very much on the agenda for Jackson Lab and other local employers.
In Bar Harbor, houses and apartments once available for year-round rental now largely go for short-term vacation rentals. Town councilors have called the situation a crisis.
Employers are developing solutions.
JAX has additional construction plans for rentals. Workforce, student and affordable housing projects by Acadia National Park, Island Housing Trust and College of the Atlantic are in the pipeline.
“Accessible housing is an issue across Maine and Hancock County,” says Catherine Longley, the lab’s executive vice president and COO. “The need for workforce housing is a strategic imperative for us.”
According to a 2019 Island Housing Trust report, over half the people who work on Mount Desert Island live off-island due to housing costs. Since 2000, median house prices more than doubled, but median incomes rose by less than 50%. Over a third of housing units are seasonal due to the lucrative vacation rental market.
“The housing deficit on Mount Desert Island is a significant impediment to attracting and retaining a year-round workforce, including individuals and their families who come to work at JAX from near and far,” Duane Bartlett, the Bar Harbor Housing Authority’s executive director, recently said.
Losing candidates
“Ten years ago there were many more rentals and more people who would rent to JAX employees,” says Longley. “Those were eaten up even before the pandemic by Airbnbs and seasonal rentals.”
In Maine, JAX has about 1,500 employees and is looking of more. But to illustrate the problem: As of late August, the lab had lost over 70 candidates for the year due to lack of available housing – a major factor in withdrawing from consideration after candidates were deep into the interview process or even in declining an offer.
That includes all levels, from front-line workers to leadership and researchers.
In the same period, JAX filled about 370 positions. Where do they live?
Some work remotely. Two-thirds of JAX’s total Bar Harbor workforce commutes from beyond Mount Desert Island – 67 ZIP codes in 14 of Maine’s 16 counties.
Elsewhere in Bar Harbor, the Mount Desert Island Biological Laboratory has similar challenges.
“The lack of affordable housing options in Hancock County makes recruiting and retaining employees, students and faculty a real challenge,” says spokesperson Jeri Bowers. “Over the last year we have lost three outstanding candidates due to the lack of affordable housing within 50 miles of Mount Desert Island. It is having a significant impact on our ability to expand our research programs.”
The lab is working with MDI colleagues and state and federal agencies to try and develop immediate and longer-term solutions, while also evaluating potential internal solutions, she adds.
Waiting list
At JAX, the new rental complex was oversubscribed.
“We have a waiting list of over 25 for the one-bedroom units,” says Longley.
The $10 million complex – with two buildings of 12 units each, outdoor community space, a shared storage building, and tenant parking – were constructed following sustainable LEED, Passive House and Sustainable SITES principles. Contractors included Wright-Ryan Construction, Ryan Senatore Architecture and Woodard & Curran.
To determine rental rates, JAX worked with an internal housing advisory committee and consultants at Coastal Enterprises Inc. and the Mount Desert Island Housing Authority, and also polled employees.
That resulted in rates starting in September of $1,100 for a one-bedroom unit, $1,500 for two bedrooms and $1,950 for three. Rates include high-speed internet, but not heat. The units just came online, with average electric costs to be determined but estimated at $60 to $70 per month using high-efficiency heat pumps.
About 40 people, selected by lottery, moved in, including front-line workers, researchers, post-docs, administrators and faculty members.
It’s envisioned the units will turn over as tenants look to buy or build homes.
“But we were intentional with our housing advisory committee that we have no limit on how long they can stay,” Longley says. “You could have a visiting faculty member for three years who has no intention of buying a house.”
The 24 units comprise the first phase of the development.
The site is ultimately designed to accommodate 98 units. There’s no timeframe yet for further build-out.
“This is the first large-scale housing unit we put together,” says Longley. “We’ll take this year and see what the experience is like.”
The lab intends to look into potential state or federal funding for further development, she says.
Ultimately, the lab could use 100 rental units to fulfill demand. JAX is also in discussions with Acadia National Park, Island Housing Trust, College of the Atlantic and the Mount Desert Island Biological Laboratory to discuss housing partnerships.
It’s worth the commitment and money, says Longley, noting that JAX paid for the apartment complex and is paying the local housing authority to handle maintenance.
“It will take some time to recoup our investment,” she says. “But it’s an investment by JAX in its employees, our most important asset.”
