Newcastle housing market tightens — Prices rise and inventory shrinks

As housing prices rise and available homes remain rather scarce, many Newcastle residents are finding it increasingly difficult to secure affordable housing.  

Real estate professionals say the community is facing an affordability gap, where the cost of buying a home has outpaced what many people can reasonably afford.

Summer Robertson, associate broker and co-owner of Team Properties Group in Gillette, which services the entire northeast corner of Wyoming, said the shortage of housing inventory is one of the biggest drivers of the problem.

“There definitely is a lack of inventory and especially a lack of affordable housing,” Robertson said. “With interest rates going up, people aren’t selling their houses like they were before, and that creates a huge gap in inventory.”

Robertson said many homeowners secured mortgage rates as low as 2% or 3% in recent years, making them reluctant to sell and take on a new loan with today’s higher interest rates.

“People have 2% or 3% interest rates and they don’t want to give that up,” Robertson said 

As a result, fewer homes are entering the market and prices have increased significantly.

Five years ago, Robertson said, most homes in the region were priced under $300,000. Today, homes in that price range are becoming harder to find.

“In our entire MLS, which includes Newcastle, Upton, Sundance and surrounding communities, there are only about 20 houses under $200,000,” Robertson explains 

That shortage has made it particularly difficult for first-time buyers.

“Young people just coming out of college and starting out have a very difficult time,” Robertson said. “Young families are definitely feeling it, and we’re also seeing people on fixed incomes struggling.”

Residents are forced to get creative with their finances. Some are  responding by saving for a longer time before purchasing a home or relying on family assistance, while others are depending on generational aid from their families.  

“We’re seeing more multigenerational support, parents helping kids out a little bit,” Robertson said.

Others remain renters for a longer period while they try to build savings.

Affordable homes that do become available tend to sell quickly.

“Those affordable houses go super quick,” Robertson said. “You have to be a prepared buyer because they don’t stay on the market very long.” 

However, increasing supply has proven difficult to achieve due to financial barriers associated with new construction.

According to Robertson, the cost of development, which includes infrastructure such as subdivision streets and utilities, makes it difficult for builders to construct homes that can be sold at entry-
level prices.

“Getting builders to develop subdivision streets and infrastructure is expensive,” she said. “By the time the house is built, it doesn’t make sense financially to sell it as affordable housing.”

As a result, many new homes are built at higher price points, leaving fewer options for buyers seeking starter homes.

“It ends up being more of a higher-income spec because of how expensive development is,” Robertson said.

The housing shortage is also affecting local employers who rely on workers moving into the community.

Denice Pisciotti, executive assistant at Weston County Health Services who helps coordinate housing for staff, said the hospital has taken steps to secure housing for temporary workers.

Several years ago, the hospital purchased a house near the facility specifically to provide accommodations for contract staff.

“We purchased a house about eight years ago and rented it to contract staff that are only here temporarily,” Pisciotti said. “It’s right behind the hospital, so it’s an easy commute.”

Many of those workers include certified nursing assistants and other temporary medical staff who come to Newcastle for short-term assignments.

Pisciotti said landlords in the community have also occasionally contacted the hospital offering rental options for staff.

“When we needed housing, we had landlords calling and saying they had houses available to rent,” she said.

While housing has generally been available for contract workers, Pisciotti noted that the demand for housing remains strong.

At one point, she received a call from a community member asking whether the hospital rented housing to the public.

“They were looking for housing,” Pisciotti said. “But we keep it full with our staff.”

Although housing has not significantly impacted the hospital’s ability to recruit workers, Pisciotti said the evident demand for rentals highlights broader challenges in the local housing market.

“Overall, it has been pretty steady,” she said. “People haven’t declined jobs because it’s been too expensive to rent, but these are contract workers, so that’s a little different situation.”

In many cases, the hospital helps incoming staff connect with local landlords, real estate agents or housing lists maintained by community organizations.

“We appreciate the lists that the landlords and even the Newcastle Chamber of Commerce put out,” Pisciotti said. “That helps people know what’s available.”

Despite the challenges, Robertson said the housing situation reflects broader economic cycles and may eventually improve.

“I grew up in Wyoming, and there’s always ups and downs,” she said. “This is just one of those waves we ride out.”

For now, however, the combination of rising prices, high interest rates and limited inventory continues to widen the affordability gap for many Newcastle residents searching for a place to live.

“People just have to be more financially prepared, get creative and remain patient,” Robertson said.