NCW builder adapts to rising costs, remote work trends in custom home market

Chelan-based custom home builder Jerimie John White is the “JJ” in Homes by JJ. He has helped clients build their “final dream homes” in Chelan and Douglas counties since 2018.

But the COVID-19 pandemic in 2020 led to supply chain issues and rising costs for building materials, White said.

“The supply chain was terrible,” White said. “We had a shortage when that came out and that was hard. The materials — it affected all parts of the industry. Parts for wiring for electrical, and parts for glass slowed down, then the steel tariffs. But now it’s starting to get manageable now. And everyone is used to it. You just have to plan way ahead.”

Meanwhile, the cost of building one home has increased by around $500,000 from four years ago, White said. He said many materials have either doubled or quadrupled in price.

Because White’s company specializes in custom-built homes, each project’s cost varies. Most of the homes he builds exceed 2,500 square feet, with an average cost of about $350 per square foot, he added. (That’s about $875,000.)

Despite higher prices, White is not seeing a slowdown in clientele. Since 2020, he has gained two new clients every time he completes a project.

This uptick, he said, can be attributed to a remote-work trend. Around 50% of his clients are remote workers who are relocating to the Chelan-Entiat-Orondo area to work from home.

“Remote work became available for a lot of people and they took advantage of it and expanded out this way,” White said. “There’s less population here. It’s quiet and peaceful. That’s what everyone likes out here.”

The shift to remote work also impacted White’s business operations. During the pandemic, he transitioned his office employees to remote work, and some continue to work from home. White said he’s found that the workflow is more efficient this way.

Many of his clients are from other parts of the state, so online video meetings have become the norm, he said.

White added that some clients are eager to build custom homes now to lock in prices for materials, fearing that prices could rise again in the future.

In terms of design, White said he is seeing a rise in modern and mid-century modern-style homes, which feature open floor plans and natural light. Each design on his team is created by a specialized architect.

“We have a mid-century modern style that is making a comeback and that’s a trend,” White said. “And from there, people are taking a standard design and making it contemporary. So what we will do is that we will take a typical design or layout and add a contemporary modern touch to it with exterior and interior finishes and designs.”

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Richard Tarver, with Chelan Valley Heating & Cooling, places a cap on a return air can, while working on a Homes by JJ house in Chelan in December 2024.

White grew up in home construction. His father and grandfather were both contractors, and he began working in the field during high school in the 1990s. Over the years, he’s noticed that clients often feel stressed about staying within budget, so he ensures that budgeting discussions happen early in the process.

“Our goal is to not make it stressful and (make it) as comfortable as possible, White said. “So, first thing we do is ask for the budget and we work within those parameters, and we try to give them the most for their budget.”

Despite his company’s adaptability to material costs and current housing trends, White acknowledged that the rising costs of materials are still hurting the custom homebuilding industry. He said he doesn’t expect to see significant decreases in material costs or interest rates in the coming year.

“I feel like we are at a bottom, like it’s not going to get any better than where we are at now,” White said. “If interest rates drop, then something else goes up. It’s like a balance; there’s always something.”

White said in November mortgage interest rates were around 7.9%, and the homebuilding industry hoped to see rates closer to 6% to boost business. (As of Dec. 3, the average 30-year fixed mortgage rate fell from 6.34% to 6.31%, Zillow reported.)

Still, White has seen many clients find ways to refinance their mortgages and encourages people not to be discouraged by the current housing market. He added that those looking to build starter homes — around 1,500 square feet — can expect prices to range from $260 to $275 per square foot.

“There are plenty of people out there that can build you a house at a good cost,” White said. “Don’t be afraid to get the loan even with the interest rate that’s a little bit higher because you can always refinance that (mortgage) and get your money back. It’s difficult all around, but shop around and talk to multiple builders before choosing one.”