Housing market could rain on Harbor economy

The Grays Harbor County economy did not emerge unscathed from a year defined by the COVID-19 pandemic. But the regional economy did exhibit grit and resilience amid unforeseen circumstances that could’ve plunged it into chaos last year.

That’s the upshot from the Greater Grays Harbor, Inc. 2021 Economic Vitality Index, which was released this week. Findings from the index were detailed in a Zoom meeting on Tuesday hosted by Greater Grays Harbor, Inc. CEO Lynette Buffington.

Among some of the highlights were a 5.7 percent rise in average annual wages for Grays Harbor County workers, as well as a 2.4 percent increase in taxable retail sales despite restrictions brought on by the pandemic.

And though hotel and motel tax revenue fell 1.8 percent in 2020, the lodging industry did wage a spirited comeback in the latter half of the year with “historic high revenues in September and October, making up nearly all the loss in revenues from earlier in the year,” the report stated.

The real estate market also fared well with sales of existing homes up 5.1 percent to 2,050 in 2020 from 1,950 in 2019. At the same time, the median home price leaped 16.7 percent to $251,000 from $215,200.

Even more eye-popping was the median price of a home in Grays Harbor County has nearly doubled since 2015 when it stood at $138,000, the report showed. The stout rise in the median price means it’s getting more expensive to buy a residence in the region.

While that’s good for homeowners looking to cash in and move on, it will undoubtedly make it more difficult for other folks to realize home ownership, as well as put additional strain on a razor thin rental market.

There is plenty of anecdotal evidence to corroborate the state of the rental market — just ask any would-be renter what it’s like trying to find a place to live in the region these days. A quick online search will undoubtedly yield similar results.

Although there is no short-term answer to the rental market issue, short of securing gainful employment and residence elsewhere, it seems time for local governments to at least think long term.

Our economy is growing, it did so even in the midst of a pandemic, and it appears poised for future growth. But we have to be able to provide reasonable housing options for people who want to live and work in the region.

We’re open to suggestions.