Tri-Cities is a hot spot for new luxury homes. What areas are the biggest draws?
If you want sweeping views of the Tri-Cities from your back patio, you’re going to have to pay a lot more than in recent years.
Despite fears of a recession and climbing interest rates, the Tri-Cities is not seeing demand waning for its most expensive homes.
In Richland new homes worth around $900,000 are going in off Hershey Lane, at the foot of Candy Mountain.
That’s more than twice the median home sale price for the Tri-Cities, which is at an all-time high of $435,000.
Across town at Sunhaven Estates, a local surgeon Ernesto Dizon Jr. is getting ready to build a $1.25 million home, with another of similar value nearly complete next door.
Nearby lots are going for $249,000 or more, according to Zillow.
Tri-Cities Builders Association President Jeff Losey said the calculus for how much a home costs isn’t straightforward, but the biggest driver is going to be lot prices.
Depending on where someone wants to build they could be looking at $50,000 in a more rural area, or $250,000 or more if they want a panoramic vista.
“It also fluctuates depending on the products and the materials used in building the home,” Losey said. “You always see the industry talk about there’s been an increase of 21% in construction costs, but it depends on what materials you use.”
If you want a green home, that’s going to cost you more, and it might even delay your build.
Some of the most difficult building components to get right now are energy efficient appliances such as water heaters or HVAC systems. Losey said that supply chain issues have eased up a bit, but they’re far from solved.
The jump from the median home in the Tri-Cities toward luxury builds tends to start at around 2,000 to 2,200 square feet.
Losey said that when you cross that threshold, buyers can expect to start seeing home prices climbing above $500,000 or so.
Some of the hottest spots for new high-end homes in the Tri-Cities include Southridge in Kennewick, Badger Mountain South in Richland, and the upcoming Broadmoor development in Pasco.
The Broadmoor development is in the early stages with subdivision developers beginning grading work. Within a few years, it’ll be one of the hottest spots in the Tri-Cities with 1,300 new homes and a vast retail and shopping area.
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Badger Mountain South is also beginning its retail expansion. Already nearly 1,000 homes have been built in the area, and close to 4,000 more will be coming over the next decade.
They’re aiming for a regional shopping destination with their retail plans.
If all those million-dollar homes sound impressive, they’re positively modest compared to the estate planned for one of the owners of Pacific Ag.
The Hermiston company specializes in commercial-scale crop residue and hay forage supply chains, according to their website.
Recently paperwork was filed with the state of Washington for a grading project that would eventually give way to a nearly 6,700-square-foot home with a 20,000-square-foot indoor arena, just southeast of Benton City.
Losey said the Tri-Cities remains one of the most attractive markets in the state, in part due to the stability of the housing market here.
With work from home becoming the norm, he said the area is starting to see many high-income earners choosing to move to the Tri-Cities.
