One of the first things prospective business owners once considered in Ocean City was parking. While it’s still a concern with new businesses looking to open in certain areas in town, parking has been replaced by manpower as the chief concern, specifically housing for employees.
One restaurant operator recently summed up the problem, saying it’s not just hiring and recruiting employees that’s challenging. Prospective employees cannot become current workers without a place to live. In fact, more than half of the restaurant owner’s employees – believed to be returning from last summer with a hiring bonus offered for Memorial Day weekend – have rescinded their commitments and are looking for work elsewhere due to available housing costs. The rental housing supply is down, due to numerous factors, and the demand is great. Viewing it as a long-term problem, this operator is now building a dorm on a parking lot capable of accommodating about 24 employees. It’s a sign of the times.
Though this owner is successful enough to address his own needs, hundreds of other businesses in the resort region are not be as fortunate. Public-private partnerships are going to be a key to truly addressing the seasonal housing crisis in the resort area through large-scale projects.
It’s not hyperbole to call it a crisis. This is now a tourism retention issue. Ocean City is attracting plenty of tourists during the summer months. Over the last two years, there have been little complaints from business owners about their sales. There is no dearth of customers, as the pandemic boosted tourism for Ocean City in several arenas due to our beach’s proximity to metropolitan areas. To continue to be a viable destination, however, private operators as well as government service providers must ensure a high quality of customer service. Without a reliable base of employees, restaurants, hotels, retail stores and amusement parks will struggle to meet consumer expectations, resulting in a loss of return business.
With this retention aspect as a major concern, it’s good news to see the Town of Ocean City and OCDC working together on a mixed-use facility on Somerset Street to include at least 25 beds of seasonal housing for the police department. This project is a year out at best, but a sound project on a small scale. More of these opportunities are needed for the private sector.
It’s why word of a large dormitory project — estimated to house about 2,400 workers — in West Ocean City requiring state legislative action as well as local government support deserves a close watch. Two potential properties have been identified and the key in the early stages to moving forward will be a request to the state for a bond to provide low-interesting financing for an estimated $60 million project. Local government backing for this request was sought and received from five of the seven Worcester County Commissioners this week.
It’s going to take a major project (probably a couple actually) to remove the hurt associated with short-term employee housing. Once all the details are vetted, we hope the project planned in West Ocean City will move forward because it will be a game changer for local businesses needing a place to direct their employees. Operators should not be charged with securing employee housing for college students while also running their businesses.
Creative financing opportunities and a public/private willingness to partner on addressing this crisis will be critical for these housing projects to come to fruition. There is no easy solution but without drastic action the consequences will be felt throughout the resort economy. Government support must be part of the solution.
