🏘️ Big Plans for the Former Ostrom’s Mushroom Farm in Lacey

If You Commute Along Steilacoom Road or Live Near the RAC, You’ll Want to Keep Reading

The site of the former Ostrom’s Mushroom Farm—a long-standing landmark near Lacey’s Regional Athletic Complex—is getting a major transformation. After Ostrom’s moved operations to Sunnyside and a fire damaged parts of the facility, the 32-acre property is now slated for a massive residential redevelopment.

National homebuilder D.R. Horton has submitted plans to turn the site into a 179-lot subdivision called Morel Meadows. If approved, this project will bring nearly 180 new homes to one of the fastest-growing areas in Thurston County.

What’s Being Built?

The proposed development will offer a mix of traditional front-load homes and alley-style homes, with lot sizes ranging from 2,700 to 4,000 square feet.

The plan includes:

🏡 179 Single-Family Homes – Designed for a range of buyers, from first-time homeowners to upgraders
🚗 New Access Roads & Infrastructure – Expected to connect to Marvin Road and Steilacoom
🌳 Preserved Green Space & Buffers – To blend into the surrounding neighborhood
🚸 Proximity to Schools, Parks, and Shopping – Just minutes from the RAC, Lacey Costco, and I-5

Why This Project Matters for Lacey

This development will reshape a well-known site and bring new housing to an area that’s seeing rapid population growth. Here’s why it matters:

✔ Addresses Housing Demand – With low inventory across Thurston County, these homes could help ease buyer pressure
✔ Walkable & Commute-Friendly – Easy access to the freeway and key amenities makes this area highly desirable
✔ Raises Community Conversations – While new housing is needed, some neighbors are raising questions around traffic, density, and school capacity
✔ Repurposes an Idle Site – Transforms a fire-damaged and vacant property into a vibrant residential community

What’s Next?

📆 The application was officially deemed complete by the City of Lacey on July 19
🗣️ The public comment period is now open, meaning community members can submit feedback and concerns
🏗️ If approved, construction could begin in late 2025 or early 2026

We’ll keep you updated as the city moves through reviews, hearings, and public meetings.

💬 What Do You Think—Is This the Right Move for Lacey?

Should the area focus on single-family homes, or would mixed-use or affordable housing be a better fit?
Drop your thoughts in the comments—especially if you live nearby or drive Steilacoom often!

🏡 Stay Connected with The Olympia Report!

For more updates on local developments, housing projects, and growth trends from Lacey to Tacoma, subscribe to The Olympia Report today.
📩 Get weekly news you actually care about—delivered straight to your inbox
👍 Share this post with Lacey residents, RAC regulars, or anyone watching the housing market

Work with Aaron & His Team

🏡 Looking to buy, sell, or invest in Lacey? Book a free consultation with Aaron and his team
📈 We’ll walk you through how new housing developments like Morel Meadows may affect home values and resale trends
📞 From smart moves to strategic timing—we’ve got your back every step of the way

📅 Schedule a Consultation