New home construction in Washington surged in 2025, reaching its highest level in a decade as shifting housing market conditions spurred increased building activity.
Planning and Development Director Jon Oliphant shared the update this week during his annual residential and business development report to the Washington City Council. According to Oliphant, the city issued 41 residential construction permits in 2025, nearly doubling the 22 permits issued in 2024 and marking the most active year since 2015, when 90 permits were approved.
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Of last year’s permits, 19 were for single-family homes and 22 were for duplex units, representing a combined construction value of approximately $11.7 million. The average value per residential permit came in at just under $285,000.
By comparison, the 90 permits issued in 2015 included 38 single-family homes and 52 multi-family units, none of which were connected to the city’s post-tornado rebuilding efforts.
Market conditions appear to be playing a role in the recent uptick.
"The existing home market in the area has shown slight signs of weakening, which could contribute to the increased new home construction activity," Oliphant said.
He pointed to local real estate data to support the trend.
"According to data from the Peoria Area Association of Realtors, there were 1.8% fewer new listings for single-family homes in Washington in 2025 compared to 2024.
"The median sales price for those homes sold in 2025 was only 8.9% higher than 2024. The median sales price for homes sold in 2024 was 14.9% higher than 2023."
While residential construction climbed, business-related construction activity dipped slightly. City staff issued 18 permits for business improvements in 2025, with a combined construction value of about $4.5 million, compared with 21 permits totaling $6.5 million in 2024. The average cost of a business improvement project last year was roughly $252,000.
Five permits were issued for new commercial construction, including two projects at Main Street Mini Storage at 2154 Washington Road. Additional permits were approved for The Garages at 1–13 Valley Forge Place, O’Reilly Auto Parts at 2685 Centennial Drive, and 1421–1429 Washington Road.
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Oliphant also reported progress on Protea Place, a mixed-use residential and commercial development located at the southwest corner of U.S. Business Route 24 and Cummings Lane. Building plans have been submitted and permits issued for the first two multi-family buildings in the project.
Construction on the eight-unit buildings is tentatively scheduled to begin in mid-March, weather permitting.
In a separate presentation, the Washington Fire Department delivered its 2025 year-end report, highlighting the installation of 1,033 free smoke detectors for residents. The effort, supported by donations from the Illinois Fire Safety Alliance and completed by volunteer firefighters, ranked first among volunteer departments statewide and third overall in Illinois.
The department also replaced aging equipment, including a 1993 tanker with a 2023 model, and ordered a replacement ladder truck expected to arrive in 2028. Additional upgrades included a new ambulance, station improvements, and kitchen renovations funded through a combination of grants and city support.
Meanwhile, the city council approved a nearly $115,000 payment request for construction of the police evidence building, which is nearing completion.
"Subcontractors are addressing punch list items," said Police Chief Jeff Stevens.
The city has paid $2.307 million toward the project so far, out of a total $2.337 million contract awarded to P.J. Hoerr.
Originally reported by Steve Stein in WCBU.
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