In case you missed the great article written in the Ketchikan Daily News by Tena Williams, Ketchikan is in a housing crunch. The article talks about a study that was done in the area by the McDowell Group and Millard & Associates Architects of Ketchikan, that explains that Ketchikan does not have enough housing. The report talks about how Ketchikan is in short supply of lower-cost single family houses, seasonal rentals, multi-family rentals and senior-citizen accessible homes. With tourist numbers increasing every year, seasonal rentals are becoming vital for this community. The article estimated that we will have 1,300,000 tourists visit Ketchikan in 2020. It was just two years ago we celebrated reaching 1,000,000 visitors and by next year, we should be up to 1.3 million.
Shortage of homes for sale is one of the problems. The other problem is that it’s very expensive to build here in Ketchikan. According to the study done by McDowell Group and Millard & Associates Architects of Ketchikan, it can cost $150 to $200 a square foot to build your home. To build a 1,500 square foot home at these prices, you’re looking at a home that could cost $225,000 to $300,000. In reality, it could be higher than that once you count in the cost of the land and getting power, water, and sewage to your home.
The average price of a single family home over the past six years was $290,000. Of the 106 single family homes that were for sale in 2018, the average price rose to $329,000. As we all know, housing prices in Ketchikan are going up, up, up. Homes that are priced right are not staying on the market for very long. Some houses are getting offers the day that they come onto the market. The problem gets worse when discussing affordable housing and housing for Seniors. Housing for Seniors is another problem for Ketchikan with its population getting older and the budget cuts that Pioneer Homes are facing. With these issues, Senior housing is going to become even more vital.
The takeaway from the article: it’s a great market for sellers. Ketchikan is a great community to invest in. The future of the housing market is bright, and if you are looking to buy, make sure you get all of your ducks in a row so that as soon as a house you love comes on to the market, you are ready to put in an offer.