Building 2021: North Central Washington Growth and Recovery - More Jobs. More Homes. More Options.

One of the few bright spots in Washington’s 2020 economy was construction. While many sectors have had to bite the bullet and lay off hundreds of workers, construction has created thousands of jobs. According to preliminary numbers from the Washington Department of Employment Security, in just the last month construction added over 200 jobs across the state and national figures from the Bureau of Labor Statistics suggest that residential construction has hired a growing share of those new jobs.

What does this mean for North Central Washington in 2021? As the area continues to grow, Chelan, Douglas, and Okanogan counties can expect to see more jobs, higher incomes, and greater access to housing through sustained construction growth. “Permit applications are looking strong and home builders are booked for the next year,” said Wenatchee Builders FirstSource General Manager, Roger Walters. When asked about the upcoming year, “Prices are just going to go up from here, so the time to build is now.”

He’s right. Tight land availability in Central Washington and international delays in critical home building components like lumber, appliances, and millwork have pushed back timelines on projects and restricted supply. As a result, many of the homes slated for 2020 will now be built in 2021. This year saw the highest US lumber prices ever recorded and, while prices leveled out for a short time, we are starting to see a second spike due to delayed project demand. “Nobody knows when these spikes are going to end,” Mr. Walters offered.

Real estate agents including JoAnna Holland are seeing high demand and low supply reflected in their work as the frantic pace of home sales continues into 2021. Ms. Holland is a managing broker at Coldwell Banker Cascade and Communications Director for the North Central Washington Association of Realtors. “We’re at a less than two-month supply in most price segments, which is the lowest I’ve ever seen,” Holland said. The statistics are startling. In the Wenatchee Valley, available housing inventory is down 50% compared to last year, yet sales volume has continued to climb at a rate of 3% over the same period, a trend so strong that many expect it to continue well into 2021. When asked what homebuyers can expect in the near-term, Ms. Holland had this to say: “If you’re in the market for 2021, make sure you get preapproved with a lender and don’t hesitate. It’s crazy, you just have to jump.”

As realtors and builders prepare for a busy year ahead, North Central Washington can expect to benefit from increased economic activity, family wage jobs, and greater housing diversity as builders attempt to meet demand. Next year promises to be strong for one of the few economic sectors that have managed to grow despite the hits it has taken from economic shutdowns and major policy shifts.
2021 will be a building year.