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Low apartment vacancy rates, full RV parks and a relatively stable housing market have some in the area's real estate industry wondering where workers coming for Hanford work created by the federal stimulus money will live.
"The issue is where are we going to put them?" said Glen Clark, president of the Tri-City Association of Realtors.
"A lot of folks moving in would have to sell first, in markets that aren't as good as at the Tri-Cities. Those folks are going to be renting, and we just don't have much vacancy," he added.
Most agree the $1.96 billion in stimulus money for Hanford will be a boon for the Tri-City economy, including local retailers. But uncertainty abounds about how many workers will be moving in, how long they'll stay and what housing needs they'll have.
To help workers who will be moving into the community, the Tri-City Development Council has taken on the task of locating vacancies, said Gary Petersen, vice president of Hanford programs.
"We will try and make this as easy as possible," he said.
Housing availability and other information for newcomers is being made available on one central website created by the Tri-City Herald with input from TRIDEC. The "Your Guide to the Tri-Cities" is at www.tricityherald.com. Also, the Department of Energy's www.hanford.gov site includes job website links.
And not all new workers will be moving in immediately, which will make the process of finding living space easier, Petersen said.
Apartments occupied
For new workers looking to rent, apartments are available, though occupancy rates are high.
A survey by Crown Property Management in Kennewick indicated the apartment occupancy rate in Richland and Pasco was 96 percent in March. The rate in Kennewick was 97 percent.
The informal survey is conducted twice a year, in March and September, and generally covers complexes with more than 26 units, said Jolene DeGarmo, multi-site property manager for Crown.
At the 83-unit Illahee apartment complex on George Washington Way, onsite manager Luci Lyle said she had two openings on April 1.
It's not uncommon for the complex to have a waiting list because of its proximity to the Hanford site, she said. "I wouldn't be surprised if that happens soon," Lyle said. "It's going to get tighter."
But with monthly turnover, those in the apartment rental industry don't seem concerned about having enough accommodations for new workers.
Robert Young, a longtime owner of Tri-Cities apartment properties, said he's excited about the influx of workers and expects the 30 or so units vacant at his seven complexes as of April 1 to fill.
He also anticipates some workers will have to live in outlying areas, as a new apartment complex likely won't be built any time soon. It would take at least two years to complete such a project, he said.
With the combination of home sales, rental homes, apartments and units available in smaller multi-family dwellings, Crown's DeGarmo agreed new units likely won't be needed.
Housing market normal
Workers moving to the community ready to buy a home will find housing inventory in the Tri-Cities about normal, unlike some parts of the country where inventory has jumped because of a wave of foreclosures and overbuilding.
There were 1,249 homes on the market April 1, compared with 1,344 a year earlier, according to the local Realtors association.
And inventory is tight for homes priced below $250,000, said Realtor Vicki Monteagudo of Coldwell Banker Tomlinson Associated Brokers.
The growth that likely will come from new jobs at Hanford also could result in higher prices, Monteagudo added, but said many of those coming also are not likely to buy a house. "It's going to put a push on rentals as well," she said.
But those in the home rental industry say they don't have many openings.
Alan Kowalski, a Realtor and property manager for Windermere Tri-Cities, said his current rental inventory is almost entirely upper-end homes. He usually rents 10 or 12 homes per month, but said he's now renting only two or three.
That's because six weeks ago he had nearly 30 properties available and at the end of March, he had just seven.
"There's still people buying. I just think there's a scope of people that can't or don't want to (so they're renting)," Kowalski said. "We're looking for more owners to list their homes with us for leasing and property management."
He said about a dozen calls came into his office one week near the end of March from employees of Hanford contractors looking for places to live for a few months.
Research by TRIDEC also has shown housing vacancy rates are tight. "We're finding that housing is fairly short in the Tri-Cities. Apartments are more than 90 percent occupied," Petersen said. "And we also understand that a lot of the RV parks are fairly occupied."
RV parks in demand
At Horn Rapids RV Resort in Richland, the core of the park's business is people staying long term while they work at Hanford, said manager Dan Stephens.
"Naturally we would welcome more workers in for the vit plant and the area, that is our base," he said. "It's going to be good for the community."
Though the park's 225 sites are nearly full, Stephens said it has handled influxes before. He said the park, which has been open five years, has an additional 50 sites in its master plan that could be developed in a few months.
"It will depend on our customer base," he said.
Though the client base at Franklin County RV Park at TRAC in Pasco comes mostly from people coming to town for shows, TRAC general manager Troy Woody said he knows of at least two tenants who are there for Hanford work.
The 46-site park is about half-full, Woody said, adding he's not concerned about the area having enough living space for new workers.
Infrastructure was built up during recent boom years and now there's less demand, he said.
"I think the market is built up pretty solid," Woody said. "I think it's good news for the market."
Yakima Valley effects
Communities farther up the Yakima Valley also might feel the effect of new workers.
"What we have noticed over the years is that when there's a buildup or the employment numbers out at the (Hanford) site are up, it kind of comes up the valley from your area to Prosser, Sunnyside, Grandview, where they get some sales activity," said Jim Beckett, broker and co-owner for RE/MAX Traditions in Yakima.
He said there's a fairly normal supply of homes on the market, and the average sale price has held relatively steady, though the number of sales dropped in 2008.
"We do have quite a number of folks that commute" to Hanford, Beckett said.
If housing inventory in the Tri-Cities does dwindle, Windermere Tri-Cities designated broker and co-owner Dave Retter said local builders will be able to catch up, but it will take several months.
He described the housing market in the Tri-Cities as a pendulum.
"We're going from one problem, where people aren't sure if they're going to buy, to another -- if they're going to buy, there's not much to choose from," he said.
"We're going to end up short-supplied on homes. Then we're going to see prices up because housing is a supply and demand issue."
Retailers hopeful
Area retailers aren't yet sure how their businesses will be affected, but most say they're looking forward to a bump in clientele.
"I expect to see an increase in sales as a result of the stimulus package money being invested in Hanford," said Lee Boman, manager of JCPenney at the Columbia Center mall. "How big of a bump will depend on how much is invested over what time period."
At the Country Gentleman Restaurant & Catering in Kennewick, co-owner Steve Simmons said he's excited.
"We do a lot of catering with contractors, so we would expect that business would expand some," he said. "It's really good news for the Tri-Cities. This is one of those things where everyone benefits."
Whether the stimulus money will lead indirectly to more jobs being created at stores and restaurants is uncertain.
In the past, Country Gentleman has hired in response to a swell of new workers at Hanford, Simmons said, adding, "We'd be tickled to."
More employees at JCPenney also will depend on demand, Boman said.
"The likelihood of hiring additional people will increase as sales do," he said.
