Spokanes residential construction market, which heated up to red hot in recent years before starting to cool last year, likely will continue to chill somewhat this year, experts here say.


Joel White, executive officer of the Spokane Home Builders Association, says hes expecting market activity to soften slightly and return to normal levels seen here before housing construction took off several years ago. White says that residential construction in the earlier part of this decade represented more normal levels of activity for Spokane. For example, in 2002 and 2003, a total of between 1,200 and 1,500 permits for single-family homes were issued a year here.


In 2007, Spokane County and the cities of Spokane and Spokane Valley issued a combined 1,769 permits for single-family homes worth a total of $275.7 million, compared with permits for 2,192 homes worth $326.6 million in 2006. A total of 2,517 permits for homes worth $386.7 million were issued in 2005.


While builders face concerns such as a surplus of inventory and a more cautious mortgage market, White says theyll have plenty of reasons in 2008 for continued optimism, such as Spokanes steady economic growth.


We still have a fairly strong local economy and a great quality of life, White says. Theres still demand as new jobs are being created, and interest rates are still very low.


An abundance of planned single-family home developments and big apartment projects will contribute to residential construction activity this year, particularly on the West Plains, which observers are calling a budding hot spot for development. The condominium market, while perhaps not booming as it had in recent years, still will contribute some new living units to the area.


The Journal of Business examines residential construction activity further in a story in its Building the Inland Northwest magazine, included in this issue. Among the projects mentioned in that article that either are under way or planned to begin this year are:


Spokane-based Payne Properties Inc. is planning a 59-lot subdivision next to the Pine Acres Par 3 & Driving Range in the Wandermere area.


In Spokane Valley, Paras Construction Inc., of Spokane, recently started construction on a 26-lot subdivision, called Hazelwood Park.


Near the Pasadena Park area, Landed Gentry Homes & Communities LLC, of Burlington, Wash., is developing a 49-lot subdivision, called The Willows at Upriver.


On the West Plains, Aho Construction Inc., of Vancouver, Wash., is developing a 90-lot subdivision, called Maple Terrace, at a 30-acre site south of Interstate 90 and north of Hallett Road.


Hayden, Idaho-based Viking Construction Inc. has started infrastructure work on a nearly 200-lot subdivision, called Traditions, located north of Sixth Avenue in Airway Heights.


Greenstone Corp., of Liberty Lake, is developing an $11 million, 114-unit apartment complex, called North Star Lodge, on a portion of the former North Cedar Drive-In site in North Spokane.


In Post Falls, Coeur dAlene-based Wildwood Building Co. plans to start construction this month on the second phase of Prairieview Terrace, a 52-unit affordable housing project.


Coeur dAlene Condominiums plans to start work later this year on a $50 million, 74-unit condo project in Coeur dAlene, overlooking the Spokane River near the big Riverstone development.


Corey Condron, vice president of Condron Construction Inc., of Spokane, says he expects the market to slow this year compared with last year, but only slightly.


Im expecting to be 10 percent to 15 percent behind 2007 in my business this year, Condron says. The local economic outlook looks good, and at least we wont fall into the negative percentages that the rest of the nation has.


Contact Emily Proffitt at (509) 344-1265 or via e-mail at


[email protected].