The downtown Wenatchee landscape is transforming rapidly. The area is drawing developers and outside investors to an area once defined by family-owned businesses.
But for many longtime small-business owners, rising rents, changing demographics and ongoing construction have made it harder to stay.
Among them is Luz Covarrubias, who closed her family hair salon, Becky’s Beauty Salon, in the spring. Covarrubias had been in business for more than a decade. She said a rent increase and redevelopment plans along Wenatchee Avenue in the city’s downtown left her with few options.
Covarrubias immigrated from Jalisco, Mexico, 24 years ago. She settled in Orondo and commuted daily to Wenatchee, where she built her business from scratch.
“When I started, I had no clients. Some days I didn’t make anything,” Covarrubias said in Spanish. “But little by little, treating people kindly, I built a base.”
Becky's Beauty Salon offered haircuts, coloring and waxing. Covarrubias said the salon thrived, thanks to its convenient location near a bus stop, strong foot traffic and its family-oriented atmosphere.
But downtown economics shifted. Covarrubias said her rent increased in stages. In 2014, she said her rent was $500 per month. By 2024, her monthly rent had surpassed $1,100.
“Rent started low. Then it went up $200, then another $200 year by year,” Covarrubias said. She raised haircut prices — which once cost between $10 to $12 — to $25 or $30. But some longtime clients stopped coming.
In early 2024, Covarrubias received notice that the building would be torn down to make way for apartments and retail space. With few affordable alternatives, she decided not to reopen elsewhere.
A month-to-month lease extension was offered for her salon. Covarrubias said she didn’t think it was worth it, because it is hard to compete in a changing market
Today, she rents a chair to work from at Alexander's Hair Salon in the north part of the city and is slowly rebuilding her clientele. She says developing her skills and is taking more cosmetology classes.
“People from places like Seattle are investing here,” Covarrubias said. “They can afford the rising rents, but small businesses like ours can’t compete.”
She said the economic slowdown during the COVID-19 pandemic also took a toll on her business. “The salon was my second home,” she said. “The transition has been hard.”
Covarrubias’ story reflects a broader trend downtown. Her salon was one of four businesses that were shut down by a major redevelopment project led by Weidner Apartment Homes.
The project, stretching from Wenatchee Avenue to Kittitas Street, includes demolition of storefronts that housed Taco Loco, Becky’s Beauty Salon, Jade Nails and Ditto Thrift Store. The owners of these businesses did not return requests for comment by publication time. El Potro Western Wear already moved down the block in November 2023.
Covarrubias said she worries that Wenatchee’s rising costs are pushing some people to consider returning to Mexico, where expenses are lower. For now, she and her husband are staying put while their children finish school. But she isn’t ruling out a move in the future.
“Maybe we’ll move back once the kids are fully independent,” she said. “We’ve already given something to this country. We deserve to rest, too.”
Developers say the new projects promote economic vitality, create jobs and generate tax revenue. According to the Wenatchee Valley Chamber of Commerce, tourism generated about $458 million annually in 2023.
According to a report by the Wenatchee World, city officials and planners point to a regional housing shortage and say building new apartments downtown is part of the solution. This project is part of a multi-year plan, Reimagine Wenatchee, the city’s plan to improve housing, expand commercial space, and make roads more accessible for walking and biking.
At the same time, community leaders and advocates are working to support small-business owners through the transition. The Wenatchee Valley Chamber of Commerce provides bilingual networking events, translated materials and workshops for Hispanic and Latino entrepreneurs.
“Growth is going to happen with or without us,” said D’Andre Vasquez, the Hispanic business and community relations coordinator at the chamber. “Our goal is to help prepare our business owners so they can thrive as the community evolves.”
Vasquez said it is important to meet people where they are. A major goal, he said, is to ensure resources are available in Spanish and maintain consistent communication with business owners. His work focuses on building those relationships.
Similarly, the nonprofit CAFE, the Community for the Advancement of Family Education, is offering free marketing assistance, licensing guidance and Spanish-language networking. Small-business coordinator Joanna Sánchez-Aviña said many owners feel pressure to raise prices but don’t always have the tools to explain rising costs to customers.
“Social media and educational workshops are crucial,” Sánchez-Aviña said. “These help small businesses push through change.”
Sánchez-Aviña said she’s seen growth among Hispanic and Latino entrepreneurs in the valley. She said with more economic development, there’s new opportunities and a growing market for those businesses.
“This year especially, we’ve seen more people come to us wanting to start businesses, which makes me happy,” she said. “It shows our services are reaching the community, and our Hispanic community is feeling more confident about launching their own businesses.”
Many small businesses, such as the owners of Mima’s Famous Salsa and Mimi's Cabbage, have found these resources useful. CAFE has helped businesses like Mimi's with grants and loans.
Covarrubias said the changes extend beyond downtown storefronts. She sees shifts in the valley’s agricultural landscape as well, with family-run farms struggling while large-scale operations expand.
“Wenatchee isn’t what it was 24 years ago,” she said. “It’s still beautiful, but not the same. More traffic, more houses … tourism drives up prices — not just rent, but everything.”
Some advocates including Sánchez-Aviña and Vasquez say the city needs policies to protect existing businesses and residents. They point to ideas like inclusionary zoning, which requires affordable housing units in new developments, stronger lease protections and public-private partnerships that help preserve legacy businesses.
As Wenatchee grows, planners and advocates say the challenge is finding a balance between growth and inclusivity, building housing and attracting investment while also supporting the businesses and families that give Wenatchee its character.
“We’ve held listening sessions,” Vasquez said. “We want to understand what our Hispanic business owners need.”
Sánchez-Aviña said that more entrepreneurs are attending workshops this year as a sign of growing confidence, though many remain vulnerable.
Covarrubias hopes her decision to stay in Wenatchee will work out, but she admits the future is uncertain. For now, she’s focused on rebuilding her clientele, one haircut at a time.
Reneé Diaz may be contacted at [email protected]. Collaborative reporting by The Wenatchee World, NWPB and Murrow College of Communication Newsroom Fellowship.
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