MOSES LAKE — Demand for housing in Grant County should translate to a lot of activity in the residential construction market in 2021.

Joel White, executive officer of Spokane-Grant County Home Builders, said Grant County is like most markets east of the Cascades. The ability to work remotely and the rise in home equity in what White called the “urban west coast” are prompting people to sell homes and move. Homeowners in Seattle, Portland and San Francisco have seen substantial increases in equity, and many have decided to sell.

“If you lived in Seattle for the last five years, you earned enough to buy a nice home in Moses Lake or Spokane,” White said.

And that will mean a lot of work for homebuilders throughout eastern Washington.

“I think we’re going to see a strong 2021 market,” he said.

White cited his brother-in-law as an example, who’s required to go to his office in Seattle only a couple of days a week. So he moved to Ellensburg.

“We see that happening continually,” White said.

Keith Lenssen, president of Lenssen Inc., a custom homebuilder in Grant County, said he’s getting a lot of inquiries from buyers.

“I think there’s quite a bit of interest,” he said.

Lenssen said he builds six to eight homes a year.

“We’re still filling up our schedule,” he said, but he expects to be busy all year.

“My sense is that the market is very strong,” Lenssen said.

Todd Lengenfelder of Lengco Construction, in Moses Lake, said he, too, expects a busy 2021.

“The building market is still very strong in Moses Lake,” he said.

Lenssen said he’s been getting inquiries from a different kind of customer this year.

“I think there’s been a surprising amount of vacation (and) second home interest,” he said.

His customers are building around Blue Lake and in the Sun Lakes area, Lenssen said.

Lengenfelder said about half of his customers are coming from the west side of the state, and about half are local residents moving to a new home. Most of his customers are building in the Moses Lake area.

“Our builders are doing very well,” White said. In fact, “there aren’t enough workers right now.”

However, he noted the cyclical nature of the business. How long the strong construction market will last is uncertain.

Material costs have increased. Lumber costs are up 150% over last year, White said.

Lumber prices peaked in July and August, but they continued to be high through the end of the year, “historic highs,” Lenssen said.

“The price of (materials) has been sky-high since last year, and they haven’t come down yet,” Lengenfelder said.

He said he doesn’t expect material prices to drop before the end of 2021 or the start of 2022.

Builders have been having trouble getting some supplies due to interruptions caused by the COVID-19 outbreak, White said.

Homebuyers have benefited from very low interest rates.

“But interest rates can’t stay this low forever,” White said.

And strong demand pushes up prices.

“For every thousand-dollar increase, there are families priced out of the markets,” White said.

And as housing gets tight, prices go up on rental housing.

“It does price people out of apartments as well,” he said.

The state of Washington implemented a new energy code for residences Feb. 1, and White said its requirements will add to the cost of construction.

Cheryl Schweizer can be reached via email at [email protected].