Affluent buyers flock to San Juans
Islands common locale for second homes
by Lauren Kramer

Weekend visitors come and go like ghosts in the wind, but on the San Juan Islands, their flitting presence has a dramatic effect. That’s because many weekenders have a second home on the islands, one they hope to retire in or save for their families someday, as a place where future generations can create memories of their own.
The supply of residential real estate is tight on Lopez Island according to Daren Holscher, an island resident and president of the San Juan Islands Visitors’ Bureau. “We used to have a couple hundred pieces of property on the market, but over the last year there’ve been only 30 places for sale bouncing around on the whole island,” he says. “I bought my first house here in 1996 for $126,000,” he recalls. He’s since moved on, but that same house is for sale today with a price tag of $349,000.
If there are people moving off Lopez Island, it’s largely the elderly who are seeking proximity to specialty medical care, says David Schwartz, president of the Lopez Island Chamber of Commerce. “Others that leave are looking for employment – and neither reason for departure has changed much in the last few years.”
One challenge for young islanders is finding work that will pay a living wage, says Schwartz. “There’s a fair discrepancy between living here and earning enough money while working here to afford to live. As a result, many of the young people leave.”
Yet, the population is gradually increasing on the island, he says.
And perhaps in response, real estate development is busy. “We’ve had a couple of good years on the sale of raw land, and that usually precedes a busy period in the construction business,” Schwartz says. “Right now, they’re primarily building single family residences and finishing up two condominiums, though the latter is a project that’s been ongoing for the last 20 years.”

Hot prices and heritage homes
San Juan Island is buzzing with new construction as well, says Sam Buck, a Friday Harbor realtor with Coldwell Banker. “There’s a lot of contractors here and they all seem to be really busy,” he says. “There’s got to be at least 15-to-20 new homes going up on the island each year.”
The buyers come from the Pacific Northwest, from California and Oregon, he adds, though some come from the Northeast attracted by the more moderate climate. “More and more people are buying for a heritage property, a home they want to be part of their estate,” Buck says. “They’re willing to put big dollars into something really nice because they see it being in their family a long time, and creating generations of history. That reduces the likelihood of turnover, which makes the inventory smaller and drives prices up.”
As for median home prices in the San Juan Islands, it’s problematic to get a true reflection of home values says Paul Dossett, San Juan County assessor. “We have over 400 miles of waterfront, so when they take a median house value it’s going to include homes selling on the waterfront and those inland. But the average price is about $400,000,” he says.
Property values are increasing an average of one-to-one-and-a-quarter percent per month across the board, Dossett adds, though properties with good marine views are accelerating faster than those located inland.
The assessor’s office estimates that half the homes in the San Juans are second homes. “We have many affluent folks that have purchased land and built, but live elsewhere in the United States,” Dossett says.
“In 2004 we picked up $85 million in new construction, and $100 million in 2005. But sometimes these homes take two or three years to complete.” One thing he has noticed in the course of conducting 1,000 inspections a year is that the homes are getting larger and more extensive. “The ownership is becoming more affluent and people are wanting larger parcels of land for privacy, to create their estates,” says Dossett. Celebrities? There’ve been a few well-known actors and movie directors, but he isn’t divulging their identities.
The growth in population on the San Juans is putting more demand on county services like the building department, schools, sheriff’s department and emergency services, and it’s difficult for the county to keep up, according to Dossett.
Year-round residents in the San Juans number approximately 14,000. But the density of the islands is such that you never feel crowded. The light density makes it hard to know exactly how many new homes are being erected, says Harvey Olsan, an associate broker with Coldwell Banker on Orcas Island. “The typical density on this island is one home per five acres, so often you don’t even know if there’s a house going up down the road,” he explains.
“It’s been a very strong market,” he adds. “We only have a finite amount of land and the price has been going up dramatically. The demographics of our population is such that there’s a lot of baby boomers who will reach the age of 59 soon, so they can draw from their 401Ks. They’re looking down the line for a place they can enjoy now, and retire in later.”