Tracy Doriot of Doriot Construction says it is time for the government to get out of the way and let builders build in an effort to make housing affordable in Clark County
Paul Valencia
Clark County Today
Now in his 50th year of building homes, Tracy Doriot knows a thing or two about the economy.
He can meticulously explain how a geopolitical event in Europe can change the price of a product in Clark County.
He has seen how labor shortages drive up costs.
There are so many factors, he said, in what has become what many experts describe as a housing crisis. Affordable housing is out of reach for so many people.
There are no easy, quick-fixes, he added.
Still, Doriot does see one way to get things headed in the right direction.
“The solution revolves around the phrase: Let builders build,” Doriot said. “The government needs to get the hell out of the way. They need to start with a culture of ‘Yes’ as opposed to a culture of ‘No.’”
Tracy Doriot of Doriot Construction says he got his registration in the “formerly great state of Washington” in the 1970s. His passion is homebuilding.
Lately, though, it has been a struggle. And his home state is not so great for his industry.
“So many things have taken the fun out of homebuilding. It’s not so much an art or science anymore as it is a battle, particularly in the state of Washington … and Clark County,” he said. “No one makes it easy.”
A couple months ago, Doriot impressed a crowd of conservative leaders at the kickoff event for Future 42 Clark County. He was the keynote speaker on the subject of affordable housing. These are some of the highlights of his address.
Doriot wears a lot of hats in the region and the state. He is the past president of the Building Industry Association of Clark County, as well as BIA Washington. He serves with the BIA’s political action group, plus he is the chair of BIA’s Washington Affordable Housing Council. He also is the state’s representative for the National Association of Homebuilders.
He is a subject-matter expert.
This week, Doriot sat down with Clark County Today to discuss his speech from December, and to provide more insight.
He once described himself as a genie. Why? Because what he does — and all quality homebuilders do — is grant wishes.
What’s your dream? How do we make this a reality?
Those are questions for potential clients, he said.
“It’s getting tougher and tougher,” he added.
This is not just a problem for the higher-end clients. The conditions affect first-time buyers and those who are hoping to one day, years from now, be able to afford a home.
Regulations. Codes. Permitting. Delays. It all adds up to price out a potential buyer and/or take away the incentive for a homebuilder to take on a project.
“I would build anything for anyone anywhere that’s economically viable,” Doriot said. “If the numbers are not doable, we won’t do it. … I hear that from all of my contemporaries all around the state.”
The Growth Management Act, Doriot said, might have some good intentions, but there are some costly consequences, as well. It is limiting the amount of land for homebuilders.
Many cities are hoping to build vertically. Doriot said some planners would prefer to take away existing homes and build a three-, four-, or five-story unit.
That might be good for some, but he believes that would mostly benefit a national build-to-rent operation.
Home ownership is key to generational wealth, Doriot said. While renting has its pros, it should not be encouraged for the long term, he said.
Then there is regulation. Some might say overregulation. Doriot said he has to add up to $30,000 to a home just for energy code mandates. The state is also pushing builders to go solar, which is not cheap.
Then there is the stereotypical lack of efficiency from government agencies.
“Permit timelines are problematic. Most large jurisdictions have extremely slow permit cycle times,” Doriot said. “The city of Vancouver is terrible. Clark County is better than it was.”
Delays cost more money.
Doriot also pointed out that his generation of builders is aging out, and that includes skilled laborers. There is a shortage of skilled labor all across the country, and that drives up the costs.
There has been a push in Southwest Washington in recent years to encourage young people to open their minds to the possibility of skilled labor — an industry that is financially rewarding.
The Washington legislature last year passed more taxes, and there is talk of an income tax on the wealthy that could be coming to Washington, as well.
“We’re just being taxed to death,” Doriot said.
As a business owner, though, he has a not-so-secret secret regarding taxes.
“I have never paid a tax or fee in my life. My clients pay it. Everything trickles downhill,” Doriot said.
That is true for all businesses, he said.
“You have to pass the cost of any product or service. There is a pain threshold in all things,” Doriot said. “When the pain gets too severe, people just stop.”
The taxes, codes, regulations, the permit process, and the labor shortage make up a perfect storm for this housing crisis.
“Everything that can really go wrong with housing is going on right now,” he said.
This is why Doriot is talking to lawmakers and policy wonks, hoping to persuade them that what Washington is doing right now is not working, and listening to homebuilders would help housing to become more affordable.
“It just makes good sense,” he said. “I am not an economics major, but I understand a few things about it.”
That would be 50 years of experience for Tracy Doriot.
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