Is the condo market about to heat up in Thurston County? One proposal has been pitched
Condominiums are a very small part of the housing market in Thurston County, but is that about to change?
Gov. Bob Ferguson signed into law a condo reform bill this week, and a longtime home builder in Thurston and Lewis counties recently proposed a 24-unit townhome-style condo development at 715 Dennis St. SE and 934 Tumwater Boulevard SE, in Tumwater, according to city of Tumwater information.
That might be welcome news for prospective condo buyers because they are hard to come by in this county. Condo sales here typically can be measured in low double-digits while the number of single-family home sales are in the hundreds of units.
For example, 266 single-family homes and 10 condos were sold last month, according to recent data released by the Northwest Multiple Listing Service.
Why has the condo market been so sluggish? The liability laws previously associated with condo development, which left developers open to litigation. House Bill 1403, which the governor signed into law, clarifies the current condominium warranty statutes.
“Condo liability reform is long overdue,” Democratic state Rep. Jamila Taylor, a key sponsor of the legislation, said in a statement. “Encouraging condo construction is one of the ways we can bridge the gap between renting and home ownership and improve the overall housing eco-system.”
And almost right on cue, Todd Hansen of Hansen Construction, a local builder who has been around for 30 years, has proposed the Tumwater condo development. Representatives of the proposal met with the city’s Development Review Committee last week.
Hansen said he doesn’t have a firm timeline about when the project might begin and end, but he is encouraged about the need for missing-middle housing, including condos.
“It’s evident it’s going to become a more common product in our market, and time will tell whether they are well received,” he said, adding that the advantage of a condo over an apartment is that you can own it.
The townhome-style units he is proposing would be two-story units with about 1,500 square feet of space. He also plans to give prospective buyers a choice of floor plans.
And 24 units meets the sweet spot for Hansen, saying he typically builds plats in the range of 20-30 units.
“I am not running a large volume company by any means,” he said.
Thurston County April home sales
▪ Single-family residence sales fell 4.7% to 266 units last month from 279 units in April 2024.
▪ Single-family home median price rose 5.4% to $540,000 from $512,400 over the same year-over-year period.
▪ Single-family home pending sales rose 1.8% to 403 units from 396 units over the same period.
▪ Condo sales rose to 10 units from eight units over the same period.
▪ Condo median price rose 4.7% to $325,000 from $310,500 over the same period.
▪ Condo pending sales fell to 16 units from 19 units over the same period.
Source: Northwest MLS
This story was originally published May 9, 2025 at 11:24 AM.
