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Building permits slow in 2025; city has large pipeline but fewer issued permits so far, planning director says
Summary
Sandpoint planning staff reported a sharp drop in issued residential building permits in 2025 relative to the recent boom, while the city still holds a substantial number of entitled dwelling units in the development pipeline; staff signaled a shift toward infill and remodeling activity.
Sandpoint's planning and development director told council on June 4 that the city has issued far fewer residential building permits so far in 2025 compared with recent years, even as the number of entitled dwelling units in the project pipeline remains large.
Jason Welker presented quarterly building and permit data showing that year‑to‑date residential dwelling‑unit permits were roughly one‑quarter of the levels seen in recent years. He said the city had issued approximately 10 dwelling‑unit permits so far this year (including single‑family homes, accessory dwelling units and multifamily units) versus about 40 at the same time last year. Welker said total building permit activity remained more robust because smaller commercial and remodel permits continue to be filed.
Welker said the city nonetheless has a substantial number of entitled dwelling units in the pipeline — "something like a thousand dwelling units that are entitled in the pipeline," he said — while permitting and construction activity has slowed, possibly reflecting broader economic factors such as higher interest rates. He described a possible trend toward infill and reinvestment (ADUs, remodels) rather than large greenfield projects.
Welker also updated council on capital projects and parks work: he said final punchlist items remain at Juno construction, that concrete pads and park bench pads were poured and installed at recent projects, and that the Rotary Club showed strong interest in helping construct a new picnic shelter. He said the City Beach grant decision is expected June 11 and that staff is preparing for possible capital work if the grant is awarded.
Councilors asked about timing for specific projects and whether contractors or staff would self‑perform some park construction tasks. Welker said some concrete work might be self‑performed by parks staff and that the city is coordinating with local volunteers and contractors on upcoming projects.
