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Tri-Cities Single-Family Permits Up 25% Through August, and Remodel Permits Have Tripled

Builders in Kennewick, Pasco and Richland pulled 1,126 single-family permits through August, and remodel and repair permits more than tripled. Local builders say costs and rates are still squeezing them.

If it feels like there's a framing crew on every other corner in the Tri-Cities this year, the numbers back you up.

The Home Builders Association of Tri-Cities reported 1,126 single-family home permits through August 2026. That's an increase of more than 200, or 25%, over the same stretch last year. The Tri-Cities Area Journal of Business laid out the numbers in an Oct. 13 story by Ty Beaver. It says the homes are planned all over the region, from Badger Mountain and Southridge to west Pasco and West Richland.

More than just houses

Single-family homes weren't the only thing up. The builders association counted 83 townhouse permits through August, compared with 55 at the same point in 2025 and 27 in 2024. Multifamily had 29 permits, seven times as many as the year before. That's still below the 66 issued through August 2024.

A few categories went the other way. Duplexes slipped a little, to 39 permits so far this year. Accessory dwelling units are almost at a standstill, with just 5 permits, a fraction of what was issued in each of the two prior years.

Remodelers, take note

The biggest jump may be in remodeling. The association counted 189 residential remodel and repair permits through August. That's more than triple the 2025 number and more than double 2024's for the same period. Permits for residential additions held steady at 62, the same as last year.

Brad Rew of Gale-Rew Construction told the Journal those projects are smaller than they used to be.

"It seems that money is tighter or harder to access with interest rates so high," Rew said. "People don't want to refinance into higher interest rates or take seconds at high interest rates so it comes down to how much disposable cash they have or want to spend in an economy that is costing a lot to live."

He thinks a lot of bigger work is waiting in the wings. "From our discussions with people, they are wanting to do projects but waiting. Therefore if inflation cools off, we will probably see a large number of projects take off," he said.

Why the demand is there

People keep moving in. Kennewick, Pasco, Richland and West Richland together have just under 260,000 residents, and the Journal reports they added more than 5,700 people in 2026, about 2%. The state's 2026 estimate puts the whole metro area at 329,100, up 6,225 from 2025.

On the resale side, the Tri-City Association of Realtors counted more than 1,300 homes listed for sale in August, the most since 2013. Median prices seem to have leveled off just under the record $445,900 set in April. Most local real estate folks are now calling it a balanced market.

The squeeze on builders

None of that makes building any cheaper. Jason Wilkinson, owner of Prodigy Homes, told the Journal that "the market is a little volatile right now" and that "there are costs associated with building today that simply weren't there years ago."

The Journal also cited the Associated General Contractors of America. Construction added 22,000 jobs nationwide in August, and the industry's unemployment rate hit a record low of 3.1%. Average hourly earnings for many onsite and office construction employees rose to $39.36, up 5% over the year. Meanwhile, the producer price index for inputs was up 8.9% in August, diesel was up nearly 78%, and metals were up 20% or more depending on the metal.

Wilkinson said things are slowing some as winter comes on, which he called partly seasonal and "isn't unusual." He's still upbeat. His Harmony Heights development has four homes finished and four more under construction, and he's watching west Pasco and West Richland.

"The Tri-Cities has been a growth market for a long time, and I don't see the fundamental reasons for that growth going away," he said.

Why it matters for Contractors

New-home crews have a busy pipeline, with single-family and townhouse permits both well ahead of last year. But the remodel number is the one to circle. Triple the permits means a lot more homeowners staying put and fixing up what they have. Rew's warning is that the jobs are smaller for now, so expect more modest scopes, careful budgets and clients who want to phase work. If rates and inflation ease, remodelers who stayed in touch with those waiting clients could be first in line. Either way, price your bids for the wage and materials pressure the AGC numbers describe.