The number of new lots platted in Spokane County shot up by almost 23 percent last year to reach its highest total since at least 1976.


Some 3,087 lots were platted in the county in 2006, up from 2,515 lots in 2005 and 2,574 lots in 2004, says the spring Real Estate Report, published by the Spokane-Kootenai Real Estate Research Committee. Just 1,497 lots were platted in 2003.


Despite the increase in recent years, however, in 18 of the last 20 years the yearly number of building permits issued for single-family homes has exceeded the number of lots that have been platted. Because of that, Spokane County land-use planners say the county likely will have to expand its urban growth boundary here to avoid a shortage of available residential lots, although home builders say they currently have plenty of lots available on which to build.


Steve Davenport, a senior planner for the county, says creation of new lots tends to come in waves, depending on whether theres a surplus of lots or a shortage, and its hard to say whether the increase in platted lots will continue. The jump in 2006 occurred because dramatic increases in home prices generated interest in platting lots and building homes, he says.


Davenport says the current urban growth boundaries set here wont accommodate all of the new residents projected by 2026, based on the population forecast that county commissioners are working with.


In a recent land and population capacity analysis, county planners determined the county has a capacity of 602,000 residents under its current land-use designations, Davenport says.


The states Office of Financial Management forecasts that the countys population in 2026 will be between 506,000 and 672,000 residents.


Based on that forecast, commissioners are working with a medium high estimate of about 640,000 residents in 2026, up nearly 200,000 from the 2006 estimated population of 441,500.


We would need to adjust the urban growth boundaries to accommodate 38,000 additional people, Davenport says.


The Washington state Growth Management Act requires counties and cities to establish urban growth boundaries to encourage in-fill development and to limit urban sprawl.


Development is restricted outside of the boundaries. The act also requires counties to set urban growth boundaries that will accommodate expected growth 20 years into the future.


The countys current urban growth boundaries were adopted in 2001. Since then, 873 acres have been added to the urban growth area, including land south of Spokane Valley and several parcels in the Five Mile Prairie area.


The Growth Management Act requires an analysis of the urban growth boundaries at least every 10 years, Davenport says. It must be reviewed by 2011, he says. That requires a significant amount of public participation, and involvement and environmental review.


Enough for now


At least in the near future, lot availability isnt a pressing problem for Condron Construction Inc. The prominent Spokane home builder maintains a five-year inventory of buildable lots, says Corey Condron, the companys vice president.


Im finding enough land to plat, and there is quite a bit of platted land for sale, he says.


Condron says lot prices have leveled off after a steep increase in the last few years.


Land, however, is significantly more expensive than it was five years ago, and thats probably contributing to a slowdown in new-home sales after sales peaked in 2005, he says.


Condron says he recently offered $42,500 per lot for a 49-lot parcel. Thats about $12,000 more per lot than he would have paid for the same lots five years ago, he says.


Condron Construction builds entry- and mid-level homes priced from $185,000. Five years ago, entry-level homes were selling for around $135,000, he says.


A pretty large chunk of the increase is in the lot prices, he says.


The companys goal is to build 150 homes a year. I dont expect to get close to that this year, he says.


Condron says some comparatively lower-priced individual lots are available within previously developed urban areas, and some smaller-volume builders are snatching those up, but Condron Construction prefers to build in new developments, rather than on a single-lot basis.


Hayden-based Viking Construction Inc., which is developing the 199-lot Traditions residential development, on the West Plains, maintains a two-year inventory of lots.


Company President Wendell Olson says he doesnt see any immediate shortage of available lots.


We have plenty of lots and people wanting to sell us lots, Olson says.


The company builds about 300 homes a year in the price range of $180,000 to $400,000.


I see that as being pretty steady for a couple of years, he says.


Randy Barcus, chief economist for Spokane-based Avista Corp., says he expects an average of about 3,000 lots for single-family homes will be needed annually to handle growth in Spokane County for 20 years.


The availability of lots is important, Barcus says. The last thing you want is a shortage of lots, or prices will go up dramatically.


High lot prices, in turn, reduce the potential to build affordable housing.


Banks look at the ratio of the price of a lot versus a home, Barcus says. They wont give a loan for a low-cost home on an expensive lot.


He, too, says a significant factor in the recent home sales price increases has been the rising cost of land.


There are plenty of expensive lots out there, he says. Its important to have a variety of available lots.


One way to help maintain affordable prices for land is to expand the urban growth boundaries, Barcus says.


We cant control the cost of concrete, lumber, or copper, he says. The only thing we can control on the local level is lot prices. Urban growth boundaries need to be expanded to provide 20 years of growth. Thats the law.


Where growth will grow


Urban growth areas are designated all around the Spokane metro area and around smaller cities in the county, says Davenport, the county planner.


Most of the residential areas within the city of Spokane already have been developed, although portions of the Moran Prairie and Five Mile Prairie areas still have undeveloped land, he says.


Spokane Valley is showing a greater immediate potential for growth through infill, Davenport says.


Spokane Valley is growing up more in the urban core than it is growing out, he says.


Farther east, the city of Liberty Lake recently has annexed land within its urban growth boundaries, where huge residential developments are planned, he says.


Meanwhile, west of Spokane, residential developments planned or under way in and around Airway Heights are in high demand, Davenport says, adding that expansion of the urban growth boundaries will most likely include a portion of the West Plains, south of I-90. South of Spokane Valley, several developments have received preliminary plats or are being platted along state Route 27 and west of Barker Road.


Future adjustments to the urban growth boundaries will depend on whether urban services, such as sewer and water, can be provided effectively to those areas, Davenport says,


Looking north, planners will examine the potential to designate and expand urban growth boundaries near Mead.


Additional land on Five Mile Prairie and in the Indian Trail neighborhood also will be studied for potential adjustments to the urban growth boundaries, he says.


Contact Mike McLean at (509) 344-1266 or via e-mail at mikem@spokanejournal.com.