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The problem: He can't afford it.

Half his monthly paycheck goes to housing. He rents a studio apartment behind St. Paul's Catholic Church for $800. For the same price, Holcomb said, he could rent a three-bedroom, two-bathroom house with a nice yard in Savannah, Ga., where he lives.

"I prefer to go home and save some money," Holcomb, 26, said.

Holcomb's dilemma is more than a personal problem. Few young people can afford to live in Juneau, a predicament that will affect Juneau's economic well-being in the next decade.

"We already see a huge void in our work force," Summers said. "The price of housing is out of control. It's hurting our economy."

Lance Miller, executive director of the Juneau Economic Development Council, said if few people stay in Juneau for the long term, it also means less investment in the community.

And that means the community doesn't grow, Miller said.

Mike Windred, director of operations of Alaska Travel Adventure, said high housing costs have caused a high turnover rate in the travel company's mid-level managers.

"Every time we lose a mid-level manager, we have to start training someone else all over again," Windred said. "It affects how we staff our operations and our long-term goals. It is hard to grow when you have a lot of rollover."

Windred said Holcomb's predecessor moved back to the East Coast after making Juneau his home for two years. The man couldn't afford to buy a house for his wife and newborn baby.

"When they are single, it's OK to rent," Windred said. "When they get into the family mode, they want to have their own place. But there is no way for them to work full-time and get ahead here."

According to a 2005 report by the Juneau Economic Development Council, Juneau's population is older than that of the rest of the state and the nation.

People between ages 20 and 29 account for only 11 percent of Juneau's population, compared to 12.8 percent of the Alaska population and 13.7 percent of the U.S. population.

"A significant problem is lack of affordable housing," Miller said.

The U.S. Department of Housing and Urban Development considers paying 30 percent of one's income on housing reasonable. But the 2000 U.S. Census data said more than 37 percent of Juneau renters spent at least 30 percent of their income on rent. About 27 percent paid 35 percent or more of their income for rent.

Buying a house is not cheap, either.

"The houses that have been built recently are homes starting at $400,000," said real estate broker Tom Kohan. "There isn't enough affordable housing for young people."

In this tight housing market, new businesses coming to town can be a mixed blessing.

Home Depot, the world's largest home improvement chain, recently acquired 10 acres near Costco and plans to hire 150 full-time and part-time people when it opens. Although it hasn't set a definite schedule, Home Depot said it would like to open as soon as possible.

Wal-Mart, a multinational discount retailer, bought Kmart's vacant building in May and expects to employ more than 250 people when it opens. Wal-Mart officials said the renovation will happen in 2006.

Coeur Alaska, developer of the Kensington mine, expects to employ 300 workers during construction and 200 full-time people during operations.

Tim Arnold, vice president and general manager of Coeur Alaska, said Juneau's housing market won't be affected much when the mine is under construction but it will when the mine is in operation at the end of 2006.

Arnold said during the 18 months of construction, the 300 workers will live in camps near the mine site.

"Our priority is to hire most of them locally so most of them already have a home here," Arnold said. "But bringing 200 new jobs to Juneau will probably put a strain on the market one way or another. Even if we have a very high percentage of Juneau hires for those 200 jobs, that will displace those jobs in Juneau and create some jobs for people outside Juneau."

The company won't provide any housing programs, but Arnold said local banks and real estate agents have expressed interest in helping the employees.

Summers said the Juneau Chamber of Commerce is ready to work with the city on any possible solution to keep people in Juneau.

"What the solutions are is up for debate but we as a city need to make some progress," Summers said. "The housing prices are a hindrance to business."

Holcomb said he would only stay in Juneau year-round if he could save as much as he could in his hometown.

"I will work my way up the ladder and see where it goes," Holcomb said.

• I-Chun Che can be reached at ichun.che@juneauempire.com.