Washington Lt. Gov. Denny Heck was 21 when he bought his first home some 50 years ago, without parental assistance.
How?
“Because it was possible,” Heck told Tri-Cities business and political leaders during a visit Thursday.
Heck headlined a day-long tour that took him and about 50 officials to key development sites in the region, with stops meant to highlight the link between housing and economic prosperity.
The Tri-City Development Council, the Tri-City Regional Chamber of Commerce and the Home Builders Association of Tri-Cities assembled the program to show Heck, lawmakers and local elected leaders the challenges contributing to a housing crisis and the rising cost of leasing or renting a home.
The Washington Department of Commerce calculates the state will need 1.1 million more homes of all types by 2044.
Heck, a Democrat, called housing a bipartisan issue that needs policies that reflect the unique needs of local communities. Constipation point
Heck said few new homes are built for entry level buyers. He called the lack of starter homes a “constipation point” that keeps young adults from buying their first home and retirees from downsizing into smaller ones.
The average age of first-time buyers is now 40, he noted.
“Why is a 31-year-old living in your basement? This is it.”
Heck said the solution is simple to articulate, but challenging to carry out.
“Build more homes of all kinds,” he said. Economic development issue
Housing is a key to economic development, said Karl Dye, president and CEO of the Tri-City Development Council, or TRIDEC.
TRIDEC’s mission is to attract, retain and support businesses. Businesses need workers and workers need places to live.
“If we don’t have housing for the workforce, we can’t do what we do,” he said.
Business leaders said a robust housing market helps recruit candidates.
Reza Kaleel, chief executive officer for Kadlec Regional Medical Center, said candidates consider local housing costs when they consider locating in a community. That includes employees at all levels, from highly compensated surgeons to hourly workers.
The Tri-Cities isn’t as competitive as it was only a few years ago, he said.
Providence employs thousands at hospitals and clinics in both Richland and Walla Walla. Affordability used to give the region a competitive advantage, but with home prices averaging about $470,000 in the Tri-Cities, the advantage is fading.
Housing is a critical issue for french fry maker Lamb Weston holdings Inc. The Eagle, Idaho-based food manufacture has substantial corporate and food processing operations in the Mid-Columbia.
Kerry Volland, manager of the Pasco plant, said the rising cost to own or rent in the Tri-Cities pushes workers literally out of the market.
One maintenance worker commutes from Ritzville, Volland said.
Rising interest rates have helped to cool the Tri-Cities housing market, according to the most recent statistics compiled by the Tri-Cities Association of Realtors.
The median and average prices of homes sold in August were $428,900 and $470,200, respectively.
There were 1,303 homes being actively listed on the market, an increase of 72 from the prior month, with 344 sold. It took an average of 27 days to sell homes in July, three days longer than in June.
The Home Builders Association reports builders secured 1,126 permits to build single family homes through August, the largest number since the same period in 2021, when local permitting agencies authorized 1,213 single family homes.
Richland led with 314 permits, followed by Pasco (312), Kennewick (216), Benton County (83), West Richland (79), Prosser (51), Franklin County (44) and Benton City (27). The combined construction value was $410 million.
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