‘Can’t catch up.’ Hottest spots for new Tri-Cities homes as builders strain under soaring demand

Tri-Cities homes cost up to $20,000 more to build in September than four months earlier.

Yet, that hasn’t slowed Mid-Columbia home buying. Tri-Cities houses still are selling at a rapid rate — even picking up during the coronavirus pandemic.

“We can’t catch up,” Jeff Losey, executive director of the Homebuilders Association of Tri-Cities, told the Herald.

Increased demand for homes, combined with a 20 percent tariff on lumber from Canada and a demand for lumber to repair hurricane damage in the South, is putting a strain on local builders.

Lumber prices have climbed 160 percent since May, he said.

“We look very much like the rest of the country,” Losey said. “We are not immune from supply chain issues, lack of skilled labor and lot availability.”

And still, Tri-City home sales and home prices continue to set records.

More new and existing homes sold in July — 534 houses — than in any other single month since 2017, according to the Realtor association’s reports.

And 448 homes sold in August — again the most in a single month in three years.

That month just 380 homes were actively listed for sale in the Tri-Cities, when real estate experts say the Tri-Cities market should have about 1,500 homes active.

“People that were going to build but had been renting .... that market kicked in,” said Dave Greeno, owner of Big Sky Development that has developed and sold 500 lots in Pasco in recent years. He says 800 more will be developed and sold within the next five years.

Greeno says his lots don’t sit around for long — they quickly sell out to home builders, who have been furiously working to fill a housing gap.

“People are staying home and spending so much time with each other and working and doing school at home,” Lola Franklin, CEO of the Tri-City Association of Realtors, told the Herald in August. “People want to carve out space for those things.”

The hottest building spots right now are Badger Mountain South in Richland off Interstate 182 and Dallas Road, west Pasco, south Kennewick and West Richland.

Richland

▪ Badger Mountain South in south Richland was vacant land not even a decade ago.

The planned housing community that broke ground in 2011 will eventually bring 5,000 homes to the area of 1,500 acres off Interstate 82 near Dallas Road.

City permits being issued in Badger Mountain South are for homes valued about $380,000. Other are being sold for more than $400,000 and up over $600,000.

Pasco

▪ Chapel Ridge Townhomes on Remington Drive off Chapel Hill Boulevard in West Pasco offers a solution to those looking for more modest pricing.

Affordable homes are increasingly more difficult to find when the median home sales price in Tri-Cities was $319,000 in August.

“To get a house south of $300,000 is difficult to do when starting out with lots that cost $100,000,” Losey said.

The townhouse development by Envision Northwest Homes visible from Interstate 182 on a stretch of land off Road 68 ranges from $234,00 to $265,000.

▪ Desert Sage in northwest Pasco housing area sits on about 38 acres and was developed by Greeno’s company after a zoning change for the property was approved by the Franklin County Commission in 2014.

The Homes at Desert Sage have been selling for $360,000 up to $500,000.

Lots are about a half-acre, which Greeno said many people are asking for. He said they want space for a shop and to park a RV or boat.

West Richland

Smart Asset recently ranked West Richland the fifth most affordable city in Washington to buy a home, and homebuilders are taking advantage of the attraction to the town.

▪ Hazelwood Heights off Keene Road on Watkins Way and Hazelwood Drive features single family homes built by Hayden Homes. They are selling for $360,000 to $442,000.

▪ Sagewood Estates one street over on Curtis Road is early in the build stage after being in the works for several years. Some lots show that they are reserved, but home have yet to be built.

Sale prices haven’t been set for Sagewood Estates, but building permits were filed at a value ranging from $264,000 to $364,000.

Kennewick

New homes in the Southridge area of Kennewick get snapped up as quickly as they go on the market. Several recent developments sold out, Losey said.

▪ Southridge Estates near Southridge High School off Hildebrand Boulevard has all but sold out. A few homes remain on the market for around $460,000.

▪ South Kennewick is a showcase of high-end luxury houses. Homes here give homebuyers the dream home they are looking for with premium details.

For $750,000 buyers can have a five-bedroom home with bathrooms to match and more than 4,100 square feet on 51st Avenue.

At a next step down for $625,000 around the corner on South Quincy Place, homeowners will get about 2,500 square feet, four bedrooms and 2.5 bathrooms.

Finally, on 51st Avenue a home going for $514,000 offers 2,300 square feet and four bedrooms and two bathrooms.

This story was originally published October 4, 2020 at 3:48 PM.