Housing permit applications in Seattle have plummeted 94% from their 2020 peak—a staggering decline that reflects barriers making it increasingly difficult and expensive to build new homes.
The impact extends beyond builders. New home construction in Washington generated $11.1 billion in wages and supported 138,000 jobs in 2025, generating $3.43 billion in public revenue. Fewer homes in the pipeline now means higher prices, less economic activity, and shrinking opportunities for homeownership.
The MHA Problem
Since adopting the Mandatory Housing Affordability (MHA) program in 2019, Seattle has seen townhome permit applications drop 91%—even as affordable housing revenue doubled. The issue: MHA fees increase building costs that get passed directly to homebuyers. According to the National Association of Home Builders, every $1,000 added to median home prices prices out roughly 982 households in the Seattle metro area.
Recent data from two 2025 reports showed these fees are making middle-housing projects—townhomes, condos, cottages—increasingly infeasible. Yet this summer, Seattle delayed the proposed MHA Accelerator, a practical policy that would temporarily reduce some housing fees while protecting affordable housing revenues through the voter-approved housing levy.
The Bottom Line
Seattle's leaders chose endless deliberation over data-driven action. Meanwhile, residents compete for fewer homes, costs rise, and working families face displacement. If the city is serious about affordability, it needs to make building easier—and it needs to act now.
decline-in-permit-applications-shows-that-mha-staggered-progress