Housing summit focuses on closing region's affordability gap

LEAVENWORTH — A Regional Housing Summit, hosted by Our Valley Our Future (OVOF) in Leavenworth, explored housing at a regional scale and highlighted the practical, local solutions to increasing supply and affordability on June 11.

According to data from the UW Real Estate Research Center, Chelan and Douglas counties have the second and third highest median home sales prices among all Eastern Washington counties, sitting just behind Kittitas County in first place. These prices push out potential first-time homebuyers, forcing them to stay in a rental market that has also sharply risen in cost, said Steve Maher of OVOF. UW Real Estate Research Center data shows that since 2019, the cost of rent has risen 52 percent in Douglas County and 34 percent in Chelan County, compared to a 14 percent increase in King County.

“There's one set of data that I always look at and always go back to that I think tells the story of why we're in this predicament,” said Maher.

Maher pointed to a period between 2011 and 2020, in which the number of homes built in Chelan and Douglas Counties was the lowest for a decade since the 1950s. According to U.S. Census Bureau data, an average of 771 housing units were built per year between 2021 and 2025, less than the 895 units per year the state estimates the two counties combined need in order to meet medium population growth anticipated through 2046.

“It put us really far behind,” said Maher. “And while construction has picked up since 2020, we're still not producing enough new housing.”

These housing challenges have had ripple effects on local businesses, who have struggled with hiring and retaining employees due to housing affordability and availability. 

“People that make $35 an hour or less in our organization really struggle to find a place in Wenatchee to live to be able to afford just the rent,” said Kelly Allen, Chief Nursing Officer for Confluence Health.

According to Clay White and Joel Farias of Kimley Horn, each county’s population is expected to see about 12,000 more people by 2046, creating a need for about 8,000 to 10,000 more housing units in each county. Under the Growth Management Act (GMA), communities are required to plan and provide sufficient capacity and make adequate provisions for these projected housing needs.

White and Farias reported that a little over half of Chelan County’s projected housing needs are for units affordable to households making under 80 percent of the area median income (AMI). In Douglas County, it’s just under half. Meeting that demand will require a range of housing options, including "middle housing" types such as accessory dwelling units (ADUs), duplexes, triplexes and townhouses, said Farias.

“There is a lot of demand for middle housing types. There's a gap in this housing type…and a lot of times it's code holding back that development,” said Farias.

While state mandated comprehensive plan updates aim to reduce these barriers for future development, local organizations have already made strides in building middle housing options.

In Wenatchee, the Common Ground Housing Trust has built eight cottage housing units for those making 65 to 120 percent of Wenatchee’s AMI. Within city limits, the trust built four one-bedroom units selling for $180,000 and four two-bedroom units selling for $207,000. Common Ground Housing Trust uses a Community Land Trust Homeownership Model, which ensures the homes are affordable to the next buyers.

“Development is hard work and it's very expensive, but it's been very rewarding. We have a slate of applicants that are ready…that would not stand a chance of moving into a home and being able to afford buying a home in our community,” said Thom Nees, Executive Director of Common Ground Housing Trust.

In Entiat, the Office of Rural and Farmworker Housing has been able to secure housing for farmworker families with the Mountainview Family Housing development, which offers 66 units. Further north, Lake Chelan Habitat for Humanity has diversified its housing options, creating units of various sizes for households earning 40 to 80 percent AMI.

All three organizations stressed the importance of partnerships between public and private entities, as well as leveraging the right resources. For instance, while a city may not be able to provide much funding, it could provide permitting assistance. Or, a local contractor might be able to utilize established relationships to save costs and time.

“It really is a partnership game,” said Nees. “When we all do a little, we can accomplish a lot.”

The summit concluded with a tour of middle housing successes in Leavenworth, which are primarily spearheaded by Upper Valley MEND. Over the years, the organization has grown a portfolio of affordable rental and homeownership options within the valley.

The Regional Housing Summit was planned by the Chelan Douglas Regional Housing Solutions Group, a part of OVOF’s game changer initiative in the 2022-26 Action Plan. The group identifies issues and solutions to increase adequate housing supply that meets the needs of residents throughout the region. The group is made up of 40 organizations from the public, private, and nonprofit sectors, according to OVOF. The summit is sponsored by Gold Sponsors Thriving Together NCW and Peoples Bank.

Taylor Caldwell: 509-433-7276 or taylor@ward.media