Nonagricultural wage and salary employment in the Northwest increased 2 percent during the 12 months ending November 2000, compared with a 1.3-percent rate of growth for the same period in 1998. Idaho continued to lead the region with a very rapid 6-percent increase in employment. Large increases in employment in Idaho were recorded in every sector. Retail trade and business services led the way, followed by construction. The rate of growth in both Washington and Alaska was less than 2 percent. Employment gains in Oregon continued to slow, measuring less than 1 percent in the 12-month period. In Washington State, the unemployment rate as of November 2000 was 5 percent. The rate was 3.5 percent in the Seattle metropolitan area. Idaho and Oregon reported rates of 4.4 and 4.3 percent, respectively.

The sales market remained relatively unchanged during 2000 throughout much of the Northwest. Existing home sales declined 0.7 percent compared with 1999. Oregon and Washington recorded slight drops, but sales were up in both Alaska and Idaho. Sales of existing single-family homes in the Seattle metropolitan area were down 3 percent in 2000, compared with 1999. However, existing condominium sales were up 2 percent. The median price for existing homes in Washington State rose approximately 5 percent during the year, and a median sales price of $220,100 was recorded for the Seattle area.

Sales activity for 2000 through November was down significantly in Oregon’s Willamette Valley, including the Corvallis and Salem metropolitan areas. Sales volume was down 11 percent compared with the same period in 1999. Sales prices of existing homes were up by 2.5 percent in both Corvallis and Salem and up 3.8 percent in the Portland area. The Boise MLS reported that sales in the Boise area through November 2000 were up 4 percent, and the average sales price was up 3 percent to $116,350. Alaska’s sales markets have continued to perform well, although sales are down.

Single-family building permits in the Northwest totaled 53,558 homes, down 6 percent from 1999. Multifamily activity for 2000 totaled 19,905, down 13 percent. In the Seattle-Tacoma-Bremerton area, single-family activity was down 11 percent to 14,912 homes. Multifamily activity permits in the area totaled more than 11,000 units, a 5-percent decline. Homebuilding in the Boise area continued at healthy pace, down 6 percent from the record pace of the past 2 years. The number of multifamily units permitted was down 33 percent from a very small base.

Conditions in the Northwest region’s major rental housing markets remained balanced or tight through the end of 2000. In Oregon, Eugene, Portland-Vancouver, and Salem markets reported vacancy rates in the fourth quarter of approximately 5 percent and rent increases of 2 percent or less for 2000. In the Seattle metropolitan area, tight market conditions and low vacancy rates (4 percent overall) prevail. In close-in neighborhoods, rates of 3 percent or less are reported. Rental market conditions are particularly tight in the Boise area, according to the Ada Real Estate Report. The rental vacancy rate during the fourth quarter of 2000 averaged 2.5 percent, compared with 5.5 percent at the close of 1999.

Spotlight on Bellingham, Washington

The economy of Bellingham’s metropolitan area recorded a steady rate of employment growth throughout the 1990s that continued in 2000. Nonfarm employment during the 12 months ending November 2000 increased 1 percent to 67,600. The unemployment rate in November 2000 was 5.5 percent, up from 4.5 percent in November 1999. Once dominated by lumber and wood products (with manufacturing accounting for 25 percent of nonagricultural jobs), the economy of the Bellingham area has become more diversified in the past 30 years. Today wholesale and retail trade dominate nonfarm employment; however, manufacturing (including pulp and paper, chemical, petroleum refining, and aluminum smelting) and seafood processing are still important. Western Washington University (WWU), a State-funded institution, is also a major factor in the local economy. Located in Bellingham, WWU currently employs approximately 600 faculty and staff and has an estimated student population of 12,300. Because of the university, the nearby Canadian markets, and the area’s excellent outdoor recreation areas, several high-technology firms have recently located headquarters or major branches in the Bellingham area. These include: Application-Station.com, FiberCloud LLC, VoiceStream Wireless, Avista Communications, and Nortec, Inc. In addition, Horizon Air recently opened a call center in Bellingham.

The Bellingham area has experienced significant growth in population since 1990. As of April 1, 2000, the population of the area was estimated at 163,500, reflecting a very strong 2.8-percent annual growth rate since the 1990 census. More than 75 percent of the population gain was the result of inmigration.

Activity in the sales housing market continues to remain stable. Sales of new and existing single-family homes totaled approximately 2,200 in 2000, according to the Bellingham MLS. The median sales price was $145,640, 2 percent above the price in 1999. Condominium sales totaled slightly more than 300, and the median sales price was $100,000. Building permits were issued for 983 homes in 2000, a 4-percent increase.

With the substantial growth in population and households in the 1990s, multifamily housing’s share of area’s housing stock increased to 23 percent in 2000, according to a State survey. During the decade, multifamily activity accounted for 34 percent of all new housing units added in the metropolitan area. However, the increase has not kept pace with demand for rental units. The Bellingham metropolitan area’s rental market is extremely tight with an apartment vacancy rate of 2.8 percent, according to the Fall 2000 Dupre+Scott Apartment Vacancy Report. Market conditions have tightened compared with Fall 1999 when the vacancy rate was 3.5 percent. According to the report, the average overall rent in Fall 2000 was $613, up 1.5 percent. Local property managers reported that existing owners have been cautious about raising rents due to the amount of new construction in the pipeline. In 2000, multifamily building permits were issued for 551 units—approximately the same number as in 1999.

The city of Bellingham currently is focusing on downtown redevelopment with a major emphasis on affordable housing for office and retail workers. The recent purchase by the Bellingham Housing Authority of a historic hotel in downtown Bellingham was partially financed with $200,000 of HUD funds. When complete, the hotel will provide 20 apartments at rents affordable to people with incomes at or below 50 percent of the area’s median income. Several other sites are under consideration for mixed-use housing that will combine affordable and market-rate units.