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Housing Production Slows Across the Seattle Metro Area

Building activity across the Seattle metro has cooled this year. As of August, 4,390 single-family homes and 4,770 multifamily units have been permitted—representing year-over-year declines of 5% and 26%. In Seattle, 406 single-family and 1,700 multifamily permits have been issued to date.

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THEY CALL THEM PRH-ISMS.

Beliefs that define every home Justin Goff and the Pacific Ridge Homes (PRH) team build. Words like Honesty, Quality, and Commitment, principles that have turned a small family-owned construction company into the largest locally owned and operated homebuilder in Snohomish County. The PRH-isms go on, as does Pacific Ridge, through economic instability and a reignited Millennial-driven market, into an uncertain future where limited inventory threatens.

All in all, it's just another day in the Puget Sound area residential housing industry.

"It's not easy," says Goff, co-owner at PRH, referring to the building industry and its challenges, "and it's never black and white." Planners see things differently, the market fluctuates, and new rules provide ever-increasing challenges.

There's also an already diminishing land supply problem.

Lynn Eshleman, manager of land acquisition and development and director of government affairs at PRH, grapples with a host of challenges, not the least of which is simply finding land where people want to live. "We have to work around more pre-existing neighborhoods and that can mean neighbors opposed to new growth," she adds.

SO WHY KEEP DOING IT?

For Goff, it comes from a longtime love affair of building things, great things people can call home and start families in. He occasionally drives through communities built by his 23-person team, just taking it all in. Seeing one of their finished homes, condos, or townhomes become part of a community is always a fulfilling moment for him, a rare constant in the 15 years since PRH was founded. And though fulfillment doesn't pay the bills, it remains a driving force behind the company's original commitment to provide residents with a great place to come home to at the end of the day.

The past 15 years have been a boon for the former "secondary" housing markets, with sparse land and skyrocketing rents residing within city limits. Areas like South Everett, Lake Stevens, Marysville, and Mill Creek have become hot spots where commutes aren't too excessive, prices remain reasonable, and schools grade well. It's also where PRH homes line the streets.

So far, 2015 has been a banner year for PRH. "We can't build fast enough," states Goff, who has built 75 residences in just the past three months, with some 200 homes and 50 townhouses planned by year-end. This may seem rosy, however take a drive through Kirkland or Redmond for a look at the latest in "Northwest contemporary" architecture, where open floorplans and trendy distressed wood accents rule the roost. As always, buyers dictate the market, and their contemporary taste doesn't come cheap. The latest design elements can add $5,000 to $10,000 to a new home and it's up to Goff and co. to ensure that the trendsetters can afford the final product. Builders like PRH have countered rising costs by going higher density, forsaking once-treasured assets like big grassy yards for more compact lots designed to pack a higher quality punch. New homeowners, like builders, are learning to do more with less.

As always, there is a balancing act between building homes that people love, keeping them affordable, and remaining in business while doing so. And Goff credits the MBA for its part in forming a common voice that protects the homebuilders' well-being in regard to various governmental issues and giving builders the freedom to build, as opposed to manning the front lines of legislative affairs. It's this unified voice that jurisdictions listen to, which in turn allows builders to focus on creating the best products for current and future generations.

In terms of what he can control himself, Goff is quick to adapt in the face of constant change, keeping PRH consistent both in terms of value and quality, two pillars of the industry. He knows that "one bad thing trumps one hundred good things," when putting together the puzzle pieces that make the perfect home, which means that a working cohesion between all facets of the building process is a must, both in-house and out. He's also not afraid to think outside the box, promoting creativity within his expanding crew while working closely with each unique homeowner to ensure sustained happiness.

And so, with core values solidifying their foundation, PRH continues to build upon their simple yet effective blueprint for success. PRH continues to be, in the words of Eshleman, a team that "fosters respect (for) each other's opinions and ideas," which in turn cultivates innovation and ‘buildability' within the community and industry.

And hey, there's another PRH-ism.

Ed. note: Pacific Ridge Homes lives on today as a division of D.R. Horton.

High-Quality, American-Built Skylights and Other Products

Established in 1982, CrystaLite is a Northwest manufacturer of high-quality skylights, roof glazing, sun rooms, and railing systems for residential, commercial, and industrial markets. Based in Everett, Washington, CrystaLite has additional distribution and sales locations in Spokane and Salem, Oregon, and employs 60 total employees. Materials are sourced in America and all products are manufactured in the Pacific Northwest. The company sells its products across the United States.

Lots of Hats

Cathy Hieb is Controller and Secretary/Treasurer of CrystaLite, but assumes other roles. "My background is in finance. I started 13 years ago as the company Controller and have just recently assumed the corporate responsibility as Secretary/Treasurer. I handle the company finances, like quarterly/monthly reporting, financial statements, payroll, AR, and AP. But I wear a lot of other hats. I'm also personal secretary to the President and Vice President."

Big Cost Savings From the MBA Trust

CrystaLite has been a member of the MBA Health Trust for 12 years. "Cost savings is the big advantage to being in the Trust," Cathy says. "These days, keeping health insurance costs down but still providing employees what they need is a challenge. We pay 100 percent of our employees' premiums and that's something we want to continue to do if it's affordable."

Significant Savings Compared to Other Plans

Cathy says CrystaLite goes out for bid every year for health insurance but always finds the best options with the MBA. "We've even had other insurance companies approach us for our business and then tell us that the MBA Health Trust is way better, the savings are so significant, that we should just stay with them. Only once did we go to another plan, but then we came back to the Trust."

The MBA Trust Gives Crystalite Plan Flexibility

CrystaLite employees have the choice between two plan options, depending on their personal needs and circumstances. "About seven years ago, the high-deductible HSA program came on the scene and we were the first company to jump on board," Cathy relates. "We offer our employees two programs: a traditional plan for those who use more doctor visits and the high-deductible health-savings account for those who just want to make sure they have catastrophic coverage. Now we have 90 percent on the HSA program. You can still see any doctor you want and all the major hospitals in Seattle are covered. The HSA plan is affordable for us but still offers major benefits for our employees when they really need it."

Strong Broker Relationship

"Our administrator is EPK," says Cathy. "They're very good. They know our company very well and what our goals are. If I have a question, they are giving me answers right on the first phone call. Adding or terminating employees is accomplished pretty much the same day. They are really good at that."