ISLAND COUNTY
The location of Island County, at the north end of Puget Sound and east of the Strait of Juan de Fuca, has been and is a valuable asset and an economic limitation. The area attracts people because of the isolated island environment, yet manufacturing is practically non-existent for the same reason. Consequently, the economy of the island is almost entirely based on tourism, the retired population, and the Whidbey Island Naval Air Station which is located on Whidbey Island. At one time, agriculture and forestry were the primary economic activities of the county, however, now they contribute only some measure of diversification.
The two islands which make up Island County, Whidbey and Camano, are favorite destinations for weekend visitors due to their easy access via State Highway 20 over Deception Pass, State Route 532 to Camano, and the Washington State ferry system routes based at Mukilteo and Port Townsend. Whidbey Island is 40 miles long with 148 miles of shoreline and is the longest island in the contiguous United States. Camano Island is 16 miles long and has 52 miles of shoreline. Whidbey Island is 27 miles north of Seattle and 50 miles south of the United States – Canadian border.
In land area, Island County ranks 38th out of 39 counties in the state. However, in density of population, Island County ranks fifth, at almost three times the state average. Population growth in Island County has been steady since the 1930’s, with increases well above the state average. Huge population gains in the 1940’s and 1950’s in Island County were mostly due to the extensive buildup at the Naval Air Station. In 2021 Island County had an estimated population of 87,732, in 2010 the county had a population of 81,100; in 2000 Island County had a population of 71,558; and in 1990 the population numbered 60,240. Reference is made to the population chart on the following page which also includes city and district population totals. The estimated population for 2022 of 86,625 which represents an annual growth rate of approximately one percent per year since 2000.
According to the Island County Economic Development Council, of the 86,625 residents living in the county in 2022, approximately 68 percent lived in the county’s unincorporated areas of which most of the residents are concentrated around unincorporated townships such as Clinton, Freeland, Greenbank, Coupeville, Langley and along the shores of Camano Island. As can be seen by the demographic data above much of the county’s population is in Oak Harbor.
With the advent of World War II and the introduction of the airplane as a strategic weapon, the military began looking for new defense sites. In 1937 plans were made to locate a torpedo rearming and seaplane base on Whidbey Island. Approximately $3 million was appropriated by Congress in 1941 to build the military station, and in September of 1942, it was commissioned. Placed on reduced operating status at the end of the war until December of 1949, plans were then made for the station to be a multiuse, all weather Navy airfield. Since then, the station has dominated the Island County economy.
Whidbey Island was chosen as the site of a major base essentially because of the excellent flight conditions; it has some of the best flying weather in the country; it is not in any major commercial flight routes; is in a rural area with little electrical interference; and on Whidbey Island which is relatively isolated. The current mission of the base is to train and keep pilots proficient for flying the Navy’s electronic warfare squadrons. The A-6, an all-weather attacker and the EA-6B, a radar jammer, are based on aircraft carriers. Recently, numerous P-3 squadrons have been relocated to the Whidbey base for training with an additional squadron added in 2017, which is a positive growth indicator for the base and the community of Oak Harbor.
The air station is also home of the 13th Naval District Reserve which takes care of all the naval and marine reservists from Washington, Oregon, Idaho and Montana. Employment has been somewhat level at the base since 1970. After a brief dip in the military population in 1965 it began climbing the next year, eventually reaching its 2009 level of 7,600 active military and 2,400 civil service personnel. The population attributable to the naval presence has increased steadily over the past decade.
The number of civilian employees has increased slightly over the last 10 years. There is very little anticipated growth for the base in the near future. The total dependent population is 14,566. Payrolls have also been increasing. In 1967 the annual payroll of the base was $37 million, in 1980 it was $124.2 million and in 1990 the payroll was $288.0 million. And in 2018 the annual payroll the air station contributed to the local economy was around $500 million. Further, an estimated 75% of that payroll actually stays on the island. The effect of the base on the area’s population has also been dramatic. In 1942 the population of the town of Oak Harbor was 375, in 1981 it was 12,375 and in 2021 it was 22,820.
Although it isn’t an industry per se, the retired segment of the population constitutes a significant economic factor in the county. According to the 2000 census, 14.3 percent of the total population in Island County was over the age of 65. A substantial number of Navy people retire on the island and usually at a much younger age than typical. Consequently, the number of population aged 45 to 64 in Island County showed an almost 23.7 percent share of the population. A much bigger proportion (28 percent) of people aged 24 to 44 in Island County, is due to the Naval Base. The age group 18 to 24 made up 8.51 percent of the population and the age group 0-18 made up 25.5 percent of the population.
A great many of the retirees are professionals including doctors, lawyers, professors, scientists and business executives. The housing industry in the county has been deeply affected by the retired sector over the years. The influx has been partly responsible for the increasing property values. The growth in the retired population has generated a need for more service oriented businesses in certain areas. Often, retirees themselves have helped fulfill that need by starting a small business of their own. Some of these ventures have been reasonably successful, while some have been more or less hobbies and under other conditions would be marginal. Enterprises include gift and antique shops, cafes, grocery stores, and similar retail businesses. Oak Harbor, in particular, has seen a lot of this kind of activity.
Island County has a unique environment that isn’t found anywhere else in the state. However, it has its own set of problems. Further expansion is inevitable in such sectors such as tourism, commercial services, light industry and its residential base. Growth is limited by the physical boundaries of the islands. Housing development is restricted by the lack of adequate water supplies and septic tank drain fields. Transportation is also a limiting factor. Historical preservation has been under way at many places in the islands for several years and, along with other clean industries, promises to be a positive force into the future.
Summary
Island County has experienced a strong population growth rate and the economy is heavily influenced by the navy base. This economy should continue to experience moderate economic growth due, in part, to its high quality of living environment, strong job base and its attractiveness as a retirement and tourist area.