What Whatcom County’s 2022 First Buildable Lands Report Means for Bellingham Real Estate

Are you considering relocating to Bellingham, WA, or anywhere in Whatcom County? Buying a new home can be an exciting but stressful process with many things to consider. From sifting through the financial paperwork to researching potential new neighborhoods, there is a lot to consider. One of the most important things any new buyer or investor in the Bellingham real estate market should do is research the local area. Since Whatcom County recently published its First Buildable Lands Report in 2022, it can unravel what is happening with homes in Bellingham. Read on to find out what the Buildable Lands Report means for buyers and investors and how it can affect the local real estate market.

Over the past decade, Whatcom County has been experiencing exponential population growth. In 2010, the county had just over 200,000 inhabitants, which has since risen by nearly 17% as it gained approximately 30,000 residents. Due to this rapid increase in population compared to other parts of the state, the county was required to produce a Buildable Lands Report. This report aimed to determine whether the population growth aligns with the number of available homes in the county. In other words, the report wants to determine how many homes there are compared to the demand.

The Whatcom County’s 2022 Buildable Lands Report primarily looked at the development of Bellingham homes between 2016 and 2021. The report surmised that there is enough land to accommodate the growing population until 2036. However, this conclusion goes against the fact that Bellingham has been experiencing a housing crisis for the past four years. This housing crisis stems from many residents not being able to find and purchase homes within their allocated budgets. In addition, the report does not address the insufficient supply to meet the growing demand. As demand (and prices) increase, many are wondering how Whatcom County will continue to be able to accommodate the growing population.

Another concern that this report neglects to address is that it does not include information on the different types of homes in the county. Despite housing affordability and availability being a concern primarily driven by the recent housing crisis, the report did not address this. Instead, the report suggests that the real estate market in Bellingham is healthy and thriving, with plenty of space to accommodate the influx of people relocating. This means it becomes harder to gauge the accurate state of the housing market in Bellingham today and what this means for the future.

With many people relocating to Bellingham, the obvious solution is to build new homes on the copious amount of space the report indicated that the city has. Furthermore, the Buildable Lands Report suggested that the area is buildable and ripe for new home construction.

However, the natural landscape in Bellingham makes building homes a challenge. Since many parts of Bellingham are characterized by sloping land, forested parks, and golf courses, it is difficult for new home constructions. In addition, many of these areas lack the sewer and public utilities needed to build homes.

Converting these areas into suburban homes and neighborhoods could take considerable time and effort. In an attempt to fix these problems, a Whatcom County Planning Commission hearing took place on October 13, 2022. During this hearing, plans were made to conduct a feasibility study to determine the potential financial costs of building on the land in Bellingham. However, if there is not enough accurate data on the cost of infrastructure, then it becomes difficult to tell how much of the land is truly buildable.

As early as 2016, Bellingham was experiencing one of the most active building periods. There were no significant issues with supply, and interest rates were low. However, homes were still not being built fast enough to accommodate the growing population. As an example to illustrate the complexity of the situation, only an average of 644 homes have been built in Bellingham, with an additional 10,620 needed by 2036.

With tight inventory, home prices have started to rise. Currently, the median price for all types of homes in Bellingham is $635,703, with many luxury properties priced well above that figure. It is important to note that home prices in Bellingham have risen by nearly 14% year-to-date. This rise in home prices is even causing some families to relocate out of Bellingham and to other areas of Whatcom County. As long as this shortage of Bellingham homes for sale remains, home prices will continue to skyrocket as buyers compete with the few houses available.

The Buildable Lands Report offers a baseline when considering real estate in Bellingham and Whatcom County. Despite a few discrepancies in the density of land, this report does tremendous work of recognizing the complexity of the housing situation in the local area. By knowing factors such as housing affordability and availability, Whatcom County will be better prepared when crafting a Comprehensive Plan in 2025. This Comprehensive Plan will help address some of the measures that should be taken to improve the housing situation. For example, officials will be able to develop a long-term plan to provide housing to the growing population in Bellingham. This report is a start to providing the information needed to remedy the housing situation in Bellingham.

Are you interested in investing in Bellingham real estate, or have more questions about this report? Derek Buse and his team of local experts at the Buse Agency can provide top-notch guidance on everything from in-depth market knowledge to neighborhood insights. Derek and his team can help you find the perfect Bellingham home that aligns with all your must-haves.