Some residents and business owners are guardedly optimistic about the local economy, while others are pessimistic. Sales tax revenue and the total number of visitors remained relatively flat from 2023 to 2024. Inflation continues, placing pressure on some consumers to choose between groceries and rent. Yet homes sell quickly at high values, signaling strong demand and significant return on investment.
Visitors drive much of the Gunnison economy. Comparing the month-to-month number of visitors from 2023 to 2024 shows similar seasonal variations and little difference overall. Andrew Sandstrom, marketing director for the Tourism and Prosperity Partnership (TAPP), compiled a month-to-month comparison of total number of visitors for 2023 and 2024.
When the number of visitors is high, sales tax revenue for the county is also high. Following this trend, the City of Gunnison’s sales and use tax revenue increased 1.3% from 2023 to 2024, supported by increases in sectors like accommodations and manufacturing. Tax revenue for marijuana sales and manufacturing decreased.
Nathan Meyer, general manager of Harmels on the Taylor, echoed the seasonal fluctuation in guest traffic. The month-to-month pattern between 2023 and 2024 remained the same, but there was a large decrease in visitors in July 2024, likely due to the Blue Mesa middle bridge repair project impacting accessibility to Gunnison.
“Winter and early spring are definitely our slower times. Last season we met around the same bookings numbers as the year before, but like most of the valley, we noticed a hit from the Hwy. 50 bridge closures,” Meyer said.
Similar to city sales tax income, county sales tax revenue increased from 2023 to 2024. Ana Canada, Gunnison County finance director, reported an overall 3.22% increase. These sales tax revenues result from purchases of goods and services such as food, lodging and construction materials.
Ben Cowan, City of Gunnison finance director, reported that sales tax revenue fluctuated seasonally with a high point during summer months when visitorship is highest. Sales tax revenue has increased over a five-year period from 2020 to 2024. There was a mixed performance across various business sectors. Building materials and garden equipment experienced a slower growth rate of 2.43% over this five-year period. Food and beverage stores continued a steady upward trend with a 5.97% increase.
Decreasing home values can result in economic pessimism. Likewise, high resale values can lead to more optimistic views of the local economic future. Local real estate agents and owners of the Clarke Agency, Audrie and Josh Townsend, reported that median home prices have increased 6% in the City of Gunnison from 2023 to 2024 and 62% from 2020 to 2024. Similar increases occurred in Gunnison County overall.
“Since 2000, we have survived Covid, the Big Blue Canyon road repairs and the Middle Bridge emergency. And still, when local clients list their house with us, they know they better have another place ready to move into because their house is going to sell fast,” Josh Townsend said.
Nonprofits often depend on donations and grants from local residents and businesses. When there is an economic downturn, nonprofit funding often decreases. Alysa VandenHeuvel, executive director of the Gunnison Arts Center, compared donations at the end of 2024 to early 2025. The arts center saw strong donations at the end of 2024. Contributions in early 2025 have slowed. The overall economic outlook remains a concern to VandenHeuvel.
“The steps of the new administration [in Washington] add uncertainty, making it difficult to predict how funding for nonprofits will be impacted,” she said.
Mixed economic indicators come from Main Street store owners. Matthew Grant, owner of Blue Mesa Music, said sales are down, but revenue from repairs is up.
“We are down almost 30% in sales. And foot traffic is down, too. Luckily, the service business has been going great and definitely keeps us afloat in lean times,” Grant said.
Home construction is another informative economic indicator for Gunnison. Eric Williams, co-owner of Greatland Log Homes, has seen changes in demand and client characteristics since the pandemic.
“Our business has become more steady with committed, serious buyers — less tire-kicking and more people ready to build,” Williams said.
Williams said that though the price per square foot to build continues to rise, the rate of increase has been leveling lately.
Sales tax revenue and visitor numbers do not automatically predict how the local economy impacts daily living. Sandstrom said an increasing number of Gunnison County workers are in the “missing middle”. These residents have incomes between the federal poverty level and the amount of income required to be self-sufficient without outside assistance. People in the missing middle can experience food insecurity.
“Most of the people that come here, work,” said Steve Secofsky, Gunnison Country Food Pantry board president. “They are not necessarily poverty stricken. They are working one to three jobs. They are not here just because they need food. They’re here because they can’t afford food because of all the other impacts on the quality of their lives.”
The local economy can be reflected in the number of people using food pantry goods and services. Food pantry manager Angie Kreuger reported an increase in food pantry clients compared to last year.
“Our numbers have increased about 30% compared to our numbers in January of last year,” Kreuger said.
Based on the increasing numbers of people coming to the food pantry, Secofsky said he is not optimistic about future economic trends. Secofsky mentioned egg prices as a concrete indicator of the current state of the local economy.
“It would be nice to go to the store and not have to pay $9 for a dozen eggs,” Secofsky said.
National consumer confidence data reflect Secofsky’s outlook. As reported by the consumer Confidence Board, the Consumer Confidence Index fell seven points in February this year to 98.3 (1985 = 100).
Local economic factors influenced Holden Rexius’ decision to move his family from Gunnison to Casper, Wyoming this month. Rexius, a Western Colorado University graduate and long-time fly-fishing guide for Willowfly Anglers, made the decision based on the cost of raising a young family in Gunnison.
“We had to leave the valley because we just could not afford living here anymore,” Rexius said. “It's with a heavy heart that we are in a new home in a new state. Having to leave the place we wanted to spend our life and raise our family because it is no longer financially viable is a terrible feeling. It seems like if you're not established in Gunnison already, it is too late to raise a family there and I think that is really sad for the community.”
(Dave Pinkerton can be contacted at 970.641.1414 or dave@gunnisontimes.com.)
Comments
No comments on this item Please log in to comment by clicking here