By Margo Greenman, 425 Business

With inventory down 25 percent, home values and rents both increasing, and more people moving to the region, the Master Builders Association of King and Snohomish Counties said the local housing market is struggling with a housing affordability crisis.

"Despite efforts to add more housing, including a rise in apartment home construction in the region, the demand for housing has significantly outpaced supply," Master Builders Association executive director Shannon Affholter said in a press release. "Lack of buildable land and other barriers to new home construction have contributed significantly to escalating housing costs and a housing supply shortage in King and Snohomish counties. Unfortunately, this is making it harder for families and workers to find attainable housing near job centers."

Visit MBAKS Connect for our full analysis of Seattle’s updated Comprehensive Plan.

On Tuesday, Dec. 16, the Seattle City Council adopted its updated Comprehensive Plan, a key requirement of the state’s Growth Management Act (GMA) that sets the city’s 20-year vision. The plan will guide local decisions related to housing, land use, and other priorities to align with Seattle’s long-term goals and community values.

A key update in the Comprehensive Plan is its alignment with House Bill 1110, enacted by the State Legislature more than two years ago. HB 1110 requires local jurisdictions to allow for a broader spectrum of housing choices, including duplexes, townhomes, stacked flats, courtyard apartments, and cottage housing. The law allows for a minimum of four housing units on all residential lots, and at least six on all residential lots within a quarter mile of major transit. By reducing barriers to housing production near jobs and transit, HB 1110 advances the core principles of GMA while maintaining protections for environmentally sensitive and open spaces.

“Seattle’s adoption of its updated Comprehensive Plan means that the city has taken a major step forward in addressing the housing shortage placing homes out of reach for so many,” said Jerry Hall, executive director of the Master Builders Association of King and Snohomish Counties (MBAKS). “We commend Seattle for lowering many barriers to housing choices in the city even as we look ahead to persistent challenges that still exist in the work to make housing more attainable for all. MBAKS will continue to focus on offering our expertise regarding how best to facilitate more housing that is attainable for current residents, newcomers, and future generations.”

Reducing Barriers to Housing in Seattle’s Updated Comprehensive Plan

Seattle’s updated Comprehensive Plan removes several long-standing obstacles to housing production and allows for more efficient use of the city’s buildable land. Notably, the plan:

• Invests in accessory dwelling units as a popular housing option.
• Improves use of limited buildable land for housing.
• Addresses the need for housing and trees. 

Persistent Barriers to Housing Options in Seattle’s Updated Comprehensive Plan

Unfortunately, Seattle’s Comprehensive Plan preserves barriers that will continue to drive up the cost of housing for both renters and homeowners.

Under the plan, Seattle’s Department of Construction & Inspections would retain broad subjective discretion when reviewing new housing proposals related to tree canopy management. MBAKS supports the shared goal of maintaining a healthy urban tree canopy but strongly prefers a clearly defined, objective policy framework that provides transparency, predictability, and timely review for applicants.

The plan also relies on arbitrary minimum tree-per-square foot requirements, which further restrict already limited buildable land. These requirements increase the single greatest cost barrier for new housing: the price of land without demonstratable environmental benefit. Homebuilders are already subject to strict regulations that oversee new construction so that our water, air, and soil are appropriately protected. Homebuilders also routinely plant more trees during construction than are removed.

MBAKS members demonstrate their commitment to environmental stewardship by partnering with local jurisdictions through the association’s Planting a Better Tomorrow event.

“While other barriers to housing remain, MBAKS will continue to advocate for policies and partnerships needed to expand Seattle’s housing supply, ensuring everyone has a place to call home,” said Logan Schmidt, MBAKS’s Seattle Government Affairs Manager.

Visit MBAKS Connect for our full analysis of Seattle’s updated Comprehensive Plan.

Homing in on Our Region's Housing Statistics

Though not quite a record low, housing supply is still far from healthy in the Puget Sound region. Year over year, months of supply dropped 42% to 0.57 and 27% to 0.36 in King and Snohomish counties, respectively.

The East of Lake Sammamish MLS map area had the lowest months of inventory for King County, at 0.16; Belltown/Downtown had the highest, at 2.41. King County condo supply was higher, at 0.94 months of supply, than single-family housing supply, at 0.47.

The Southwest Snohomish County MLS map area had the lowest months of inventory for Snohomish County, at 0.25, and Northeast Snohomish County had the highest, at 0.49. Snohomish County condo supply was lower, at 0.24 months of supply, than single-family housing supply, at 0.39. 

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Months' Supply of Housing Inventory

As of October 2021

	King County had 0.57 months' supply of inventory (down from 0.99 months' of inventory a year ago).
	Snohomish County had 0.36 months' supply of inventory (down from 0.49 a year ago).

Many industry analysts consider a four-to-six-month level as an indicator of a healthy market.

Source: Northwest Multiple Listing Service

Median Home Price

October 2021

	The median price of single-family homes and condos was $750,000 in King County and $664,950 in Snohomish County.
	For single-family homes only, the median price in King County rose 10.64%, from $745,000 a year ago to $824,270. The median price in Snohomish County rose 19.83%, from $579,972 to $695,000.
	In Seattle, the median price of single-family homes and condos was $790,000. The median price for single-family homes only was $850,000, a 6.25% increase from $800,000 in October 2020.

Source: Northwest Multiple Listing Service

Building Permit Activity

Jobs

	The seasonally adjusted Washington unemployment rate for October 2021 is 5.0%; for Seattle/Bellevue/Everett, it is 4.9%.
	Construction employment in Washington decreased by 800 between September 2021 and October 2021. Total construction employment is 228,100 statewide and 109,600 for Seattle/Bellevue/Everett specifically.

Source: Employment Security Department: WA Employment Estimates (Seasonally Adjusted), October 2021 and Bureau of Labor Statistics.

Population

The Puget Sound region's population as of April 1, 2021 was 4,330,400. Over the past year, the region added 66,200 people, as follows:

Source: Office of Financial Management

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