Home Builders Association: New home permits surge in 2016

If you’ve been thinking about building or purchasing a new home the Tri-Cities, you’re not alone. In 2016, new single family home permits surged up 25 percent over the prior year with the majority of growth in Pasco and Kennewick. Pasco dominated the trend with a 65 percent increase in new home starts.

Early predictions indicate that this growth trend will continue into 2017, creating another solid year for the home building industry in Tri-Cities. The increase is not expected to be as robust, but demand will stay strong as inventories of existing homes hover at an extremely low number.

Some of the reasons for consistent growth in Tri-Cities include:

• Interest rates remaining low. The modest increases anticipated in the coming year are not expected to affect purchases in the near term.

• Continued support and funding of the Hanford clean-up strongly contributes to the local economy and provides well-paying jobs. These workers require housing, which serves to drive demand.

• In 2016, SmartAsset ranked Kennewick as the city with the highest real minimum wage in the country for the second year in a row. This rating, along with other national recognition that our area has received, bodes well for attracting commercial, growth bringing with it more jobs to the area. Again, the workers filling these new jobs will require housing, providing continued strength in the building industry.

• As energy and technology advance, consumer desire to renovate their existing homes or to purchase new homes that include these new efficiencies and features continues to fuel growth.

The ongoing Achilles’ heel for the industry is attracting qualified, skilled labor. The current median age of 55 in the construction industry makes it paramount to ensure our education system does not overlook the trades. Home building provides stable, living-wage jobs and the trades present an excellent opportunity to young people who do not want to follow the traditional college path. Local programs such as those found at Tri-Tech Skills Center in Kennewick and Walla Walla Community College carpentry program help fill a vital need in our community.

In May of 2016 Employment Security Department of Washington State Regional Labor Economist Ajša Suljić reported that construction and extraction occupations were ranked ninth for most openings and were listed as fourth among occupations with fastest growth.

The skilled labor shortage will persist as an issue in the coming years as the work force continues to age and housing demand increases. The building industry in the Tri-Cities is well-positioned to meet these demands and continue on its trajectory of growth as long as it can gain the necessary skilled tradespeople required for each opening.

This story was originally published March 23, 2017 at 12:00 AM with the headline "Home Builders Association: New home permits surge in 2016."