A Grim Richland Statistic: Mirror of National Economy?

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Story Published: Jun 30, 2009 at 5:11 PM PST

By Lena Vargas

RICHLAND - The number of new home building permits has dropped to the lowest level in ten years. It may sound like a statistic from a city crippled by the national economy. But it comes from the City of Richland.

Homes under construction are rare for the city these days. The latest figures show there were more than twice as many new home permits by this time last year, as there are right now.

Jeff Losey with the Home Builders Association says banks are part of the problem..

"SPEC loans are available, but the banks aren't going to let you expand too far out there”, said Losey.

The other problem: perception.

"I think part of it are the fears drive by the national economy. Because it's so bad across the country, it ends up being that that becomes in the Tri-Cities everyone's perception of reality” said Losey.

But realtors like Colleen Lane see no problem: "the fact that permits are down good for realtors” , said Lane.

She says right now there is a bit of a shortage on homes in some price ranges and rentals. She believes that will create demand, which in turn will drive people to buy existing properties and prompt new construction to accommodate our growing population.

That could work. But right now that is no consolation to the building industry. Losey says there will be layoffs because of the slowdown in building construction.

One way out of that according to both Losey and Lane: buy and buy now:

Commercial building permits in Richland are also down. From January to May 2008, Richland issued permits for projects worth $21 million. This year they’ve only permitted buildings worth one-seventh of that amount.

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