Why are homes so expensive in Bellingham?

While this is a huge topic with local and national implications, here are some hitpoints as to why home prices right here in Bellingham are so much higher than they were five and ten years ago:

National housing shortage

As a whole, the United States has a housing shortage to the tune of 3.8+ million homes (check out these articles from Fannie Mae, New York Times, Business Insider, and National Low Income Housing Coalition). In recent years, supply chain issues and remote work flexibility both compressed new home construction and also opened a migration of workers to desirable areas, especially ones with a lower cost of living than their company’s HQ. These are just a few factors; ones we’ve seen directly impact our housing situation here in Bellingham. 

Bellingham housing shortage

Speaking of Bellingham, we don’t have enough homes here either. Let’s explore a few factors:

Supply

Topographical: we have a lot of wetlands, a lot of creeks, a lot of steep terrain, both a lake watershed and a large river basin, and a coastline to work around. 

Zoning: As with any city, certain areas are zone single family, multifamily, commercial, public, etc. View Bellingham’s zoning map here. Developing any property requires engineering and site plan work, impact fees, environmental studies, permits, and more.

Building permits: For the last 20 years (aside from during the Great Recession), issued building permits have been heavily weighted to multifamily units rather than new single-family dwellings. (source)

Demand

Quality of life: while people love to complain about how slow I-5 moves on a Friday afternoon, Bellingham still has very little traffic and congestion compared to metropolitan areas. You can consistently reach core areas in 10-20 minutes’ drive. We’re also a relatively short drive to both Seattle and Vancouver, and have Bellingham Bay, Lake Whatcom, Mount Baker, and Galbraith Mountain, along with dozens of trail options, attracting outdoor enthusiasts. 

Population growth: Bellingham’s population grew by about 30% from 2000 to 2020 (source).

Read more about all things housing in Bellingham at the Housing FAQ page.

While housing prices remain strong even amidst higher interest rates than we’ve seen in over a decade, life doesn’t wait for the “perfect” housing market. Every day, our team is working with sellers and buyers who need to move. We can sit down with you and one of the area’s top loan officers and brainstorm a pathway to accomplish your real estate goals.