BUSINESS COMMENT
2
Coast River Business Journal
Publisher’s Notebook
Matt Winters • February 2022
These ’20s are roaring, but will it last?
A
re these the new “Roaring ’20s”?
Despite the lingering pandemic — and in
some ways because of it — this is a strangely
upward time in our communities within 30
miles or so of the mouth of the Columbia
River.
The Astorian reported one data point on
Feb. 1: The important Dungeness crab fi shery is having an extraordi-
nary year. Prices are high, the catch is high, demand is high and, so far,
it has been a relatively safe season. This is the sort of basic industry
that fl oods outside money into the local economy — perhaps the most
important variety of wealth and job creation.
Wood products and other local commodities also are in high
demand.
Intangible local products including scenery and lifestyle also are
having a heyday, as refl ected in real estate prices and expressions of joy
from new residents. These long-undervalued assets are being given a
boost by factors like the ability to work remotely, which itself is made
more feasible by impressive increases in broadband availability and
speed.
As a result, housing — one of my biggest interests and concerns —
is continuing in 2022 to soar upward into new heights.
As December ended, Clatsop County residential prices were up
more than 24% for the year, fi nishing at an average of $566,700 and
a median of $472,500. There were enormous variations within the
county, with northwest Seaside going up the most in percentage terms
last year — 65% to an average of $598,800. Already pricey Cannon
Beach went up the least — 8.2% to an average of $930,600. Astoria
home prices rose 30% to an average of $486,900 in 2021, and also
had the most annual sales — 221. Warrenton/Hammond saw the sec-
ond highest number of sales — 146 — with a 12% annual gain to
$455,100.
In Pacifi c County, the average home price was $356,273 in Decem-
ber. Despite this low average compared to Clatsop, it refl ects a con-
tinuation of record increases for the mainly rural county. High-season
summer prices rose 54% between 2019 and 2021.
In addition to being the most important fi nancial asset for most of
us, I carefully follow home prices as a barometer of our area’s overall
economic condition. It’s a positive indicator in the sense of increasing
family wealth. And it stands to reason that upward prices are a sign of
community popularity.
“On the other hand” — which is the most notorious phrase in eco-
nomics — if you don’t already own a house, it’s getting lots harder
to aff ord one. Expected interest rate hikes this year will make aff ord-
ability even trickier, and could start eating away at sales. Only time
will tell.
So are these the R oaring ’20s? Yeah, kind of. But how long will
they keep roaring?
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