Tri-Cities Housing Trends
Is Now a Good Time to Build or Remodel?
May 12, 2025
As we approach mid-May 2025, homeowners and investors in the Tri-Cities area—comprising Kennewick, Pasco, and Richland—are evaluating whether it’s an opportune moment to embark on building or remodeling projects. The current real estate landscape offers a mix of challenges and opportunities that are crucial to consider before making such significant decisions.
The Tri-Cities housing market has demonstrated robust activity in early 2025. February witnessed a 28% increase in home sales compared to the previous month, with Kennewick leading at a 41% rise. Median home prices have climbed to $435,000, marking a 7.4% year-over-year increase .
Despite this surge, homes are taking longer to sell, averaging 44 days on the market—the longest since 2018. This indicates a shift towards a more balanced market, where buyers have slightly more leverage than in previous months .
Building New: Navigating Opportunities & Challenges
Pros:
Stable Demand: The demand for new construction remains steady, with consistent listings and sales over the past year. This suggests a healthy appetite for new homes in the region .
Negotiation Leverage: Buyers have gained some negotiating power, as indicated by a slight buyer advantage in the new construction market. This could translate to better deals for those looking to build .
Cons:
Extended Selling Times: New construction homes are staying on the market longer, averaging over four months to sell. This could impact return on investment timelines for builders .
Affordability Concerns: Elevated interest rates and construction costs are making affordability a pressing issue, potentially limiting the pool of prospective buyers for new homes .
Remodeling: Enhancing Value Amidst Market Dynamics
With inventory challenges persisting, remodeling existing homes presents a viable alternative to new construction. Upgrades can increase property value and appeal, especially in a market where buyers are seeking move-in-ready homes.
Key Considerations:
Cost vs. Value: Evaluate which remodeling projects offer the best return on investment. Kitchens and bathrooms typically yield high returns.
Financing: Explore financing options for remodeling, keeping in mind the current interest rate environment.
Contractor Availability: With steady demand in the housing market, securing reputable contractors may require advance planning.
Strategic Planning is Key
As the market continues to evolve, strategic planning becomes essential. Whether considering building or remodeling, it’s crucial to:
Monitor Market Trends: Stay informed about local real estate trends to make data-driven decisions.
Assess Personal Goals: Align your decision with long-term personal and financial goals.
Consult Professionals: Engage with real estate professionals, financial advisors, and contractors to navigate the complexities of the market.
Mid-May 2025 presents a nuanced landscape for building or remodeling in the Tri-Cities. While opportunities exist, particularly in remodeling, challenges such as extended selling times for new constructions and affordability concerns necessitate careful consideration. By staying informed and consulting with professionals, homeowners and investors can make decisions that align with their objectives in this dynamic market.
