The Seattle City Council on Monday, October 2, approved an upzone to allow taller buildings in the Uptown neighborhood of Seattle, known to most as lower Queen Anne. It’s the latest area in a series of upzoning approvals, following the University District, downtown and South Lake Union, Chinatown International District, and certain spots in the Central District.

For those not in the know, upzoning is the ability for builders to create taller buildings to facilitate more homes or businesses. The lower Queen Anne upzone approval, which passed with a vote of 7-0, at its maximum will see an increase of building heights from 85 to 160 feet near South Lake Union, and from 40 to 85 feet for most of lower Queen Anne—which is twice as tall as existing buildings near Seattle Center. Much of the approved surrounding land, however, will see more modest changes.

Residents have already weighed in on the approval, some worried about an eventual "lack of daylight" or new views dominated by steel and glass. Others, however, see a sunnier side, noting that the greater Seattle area needs new, affordable housing where it can get it.

Speaking on affordability, another factor in the approval is the inclusion of Seattle’s Housing Affordability and Livability Agenda (HALA) program, a "multi-pronged strategy," according to seattle.gov, that will in this case require developers to include rent-restricted apartments in their project plans or face fees. Fees paid will go toward nonprofit efforts to build rent-restricted apartments in the lower Queen Anne area or elsewhere. The rent-restricted homes are aimed at those who make no more than 60 percent of the area’s median income—currently just over $40,000 in the City of Seattle for a single occupant, or $57,000 for a family of four.

Developers are required to dedicate 5 to 10 percent of each commercial development and 7 to 10 percent of residential projects to affordable housing or shell over $8 to $29.75 per square foot, depending on the project.

The HALA program goal, led by Councilmember Rob Johnson, is to create 50,000 new housing units in the next 10 years, including 20,000 units dedicated to lower income households. The goal for 2018 is to focus on a citywide rezone package, which will include a proposal to increase building heights and affordable housing requirements to areas that will likely include Rainier Beach, Othello, upper Queen Anne, Crown Hill, and Wallingford.

Homing in on Our Region's Housing Statistics

Housing inventory remains low and housing prices continue to rise, with a 19.73% and 21.74% increase in median single-family home prices in King County and Snohomish County, respectively. In more optimistic news, construction employment in the Seattle-Bellevue-Everett metro area has hit a record high.

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Months' Supply of Housing Inventory

As of July 2021

	King County had 0.66 months' supply of inventory (down from 1.13 months' of inventory a year ago).
	Snohomish County had 0.53 months' supply of inventory (down from .73 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

July 2021

	The median price of single-family homes and condos was $789,000 in King County and $675,000 in Snohomish County.
	For single-family homes only, the median price in King County rose 19.73%, from $727,500 a year ago to $871,000. The median price in Snohomish County rose 21.74%, from $575,000 to $700,000.
	In Seattle, the median single-family home price for July was $896,500, an 11.37% increase from July 2020.

Source: Northwest Multiple Listing Service

Building Permit Activity

Jobs

	The Washington unemployment rate for July 2021 is 5.1%; for Seattle/Bellevue/Everett, it is also 5.1%.
	Construction employment in Washington increased by 1,900 between June 2021 and July 2021. Total construction employment is 226,700 statewide and 110,800 for Seattle/Bellevue/Everett specifically.

Source: Employment Security Department: WA Employment Estimates (Seasonally Adjusted), July 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

Icons made by Freepik from flaticon.com

By MBAKS Content Strategist James Slone

Reducing greenhouse emissions means housing more people in healthier, more energy-efficient homes in cities near jobs, amenities, and transit. Unfortunately, a lack of affordable options has priced residents out of booming cities like Seattle and into sprawling suburbs with long, carbonintensive commutes.

A new generation of homebuilders understands that the lack of affordable housing and climate change are related problems requiring interlinked solutions. One of the leading lights in this new way of thinking and acting is Green Canopy NODE.

Where housing is located and who can afford it matters as much as how it’s built—a realization Green Canopy NODE intuitively grasps. For them, solving the housing problem at scale means creating a new paradigm where green housing is accessible to people of all income levels. It sounds easy, but it’s complicated.

Green at Scale

Green Canopy NODE brought together Seattle-based carbonmitigating construction firm NODE with Green Canopy, a green development and construction company based in Seattle and Portland with a long history helping lead the net zero revolution.

In a 2021 press release announcing their merger, Green Canopy NODE Co-CEO Bec Chapin said that the company’s aim was “an evolution of the industry to build more houses faster that create greater health, wellbeing, and resiliency for people and communities now and in the future.”

For Aaron Fairchild, Green Canopy NODE co-CEO, it’s as much a moral question as a practical one.

“As humanity continues to grapple with the need to house more people, our communities and planet feel the strain. We’re trying to lessen the strain and offer more regenerative solutions that help build communities while prolonging the life of the resources required to do so.”

For Green Canopy NODE, transforming the homebuilding industry requires a multifaceted approach: building more housing where it’s needed, offering a full suite of development services to other housing providers, prefabricating building components offsite, and deploying an impact investment fund for projects.

Build, Build, Build

Green Canopy and NODE’s coming together allowed them to pool their respective experience in green development and technological innovation to scale up construction, leading to their multifaceted approach. I recently chatted with Fairchild to find out more about each aspect of their overall work.

Obviously, the first is building housing, lots of it.

Green Canopy NODE builds rowhouses, townhomes, and multifamily units because they’re a more affordable option for families who want to live in high-quality neighborhoods with jobs and amenities. They are experts in the “missing middle” with the real estate chops to secure land for infill development.

Not an easy ask in a city where land value is through the roof.

“It’s hard to build affordable housing in urban areas where housing is needed most,” Fairchild explains. “It requires greater subsidies and a more flexible approach. As time goes on, private, nonprofit, and public partnerships will become the norm.”

It’s not enough to just build them. They also have to be green.

“Nearly 100 percent of our homes are Built Green or Earth Advantage Certified,” says Fairchild. “At Green Canopy, we historically focused on energy efficiency. We’ve always built all-electric homes and have completed several net zero homes,” or homes that produce more energy than they take from the grid.

Building green homes not only helps the environment; it also makes housing a more affordable proposition. “Because we build homes that perform well beyond code, utility costs are lower, and residents save money.” Remarkably, the company is able to deliver net-zero-ready homes to the market at the same price as code-built.

But decarbonization is no longer just about saving energy. Green Canopy NODE has recently started focusing on carbon emitted from the production of their building materials, what’s known as embodied carbon. Making sure embodied carbon doesn’t outweigh a home’s performance is the next frontier in green building.

Promoting Innovation

Perhaps the most essential element of lowering green construction costs is using new technologies to increase productivity, including standardizing building components, modernizing the workforce by training them in the latest in construction methods, and manufacturing pre-fab building components.

For Fairchild, manufacturing is especially important. “To scale up and lower costs, the industry will need to embrace the power of off-site manufacturing more and more. It is the only known pathway to the sort of efficiencies required to build more sustainable, higherquality, lower-cost housing.”

By manufacturing offsite in the controlled environment of a factory and quickly assembling components onsite, Green Canopy NODE avoids inefficiencies. The company is investing heavily in pre-fabricated solutions that can be moved directly from manufacturing facilities to project sites.

They’re especially excited about fabricating cross-laminated timber (CLT)—an engineered wood product made from wood stacked and glued together at 90-degree angles—for residential mid-to-low rise construction.

CLT is easy to carve and groove with computer-controlled cutting machines, making it uniform and easy to install. The best part? “Along with being a beautiful and exceptionally strong building material,” Fairchild enthuses, “CLT also sequesters carbon and can be reused at the end of a building’s life."

Spreading the Love: Development Services and Impact Investment

To deliver the high volume of housing needed to have a substantial impact, Green Canopy NODE also needs to be able to employ their strategies on an expansive multi-project scale. The best way to do that is by extending a helping hand to other builders and nonprofit housing providers.

Their real estate development services have helped complete hundreds of homes reliably and cost-effectively. Current projectpartners include Sunnyside Village Co-Housing, Habitat for Humanity, Africatown Community Land Trust, Homestead Community Land Trust, and Grow Bainbridge.

Their services cover all aspects of homebuilding, including acquisition, finance, estimating and feasibility, architecture, construction, and warranty services. The key to their services’ effectiveness, says Fairchild, is that they’re vertically integrated.

“Vertical integration means our team can work with you at any stage of the development process, avoiding the headache of external bottlenecks.” It lowers the cost of developing housing projects because it cuts construction costs by consolidating different stages like R&D and procurement.

The result is a high degree of flexibility and control. “We’re able to rapidly respond to requests, enhancing our ability to collaborate.” And because the company manages real estate funds, they can drive housing demand in a way that’s “aligned with our sustainability and technology goals.”

The company created an impact investment fund management firm, Green Canopy NODE Capital, to invest in infill building projects in Seattle and Portland.

Currently, Green Canopy NODE offers both investment and fund management for more than 90 shareholders and over 45 limited partners. Over the last decade, the company has leveraged their building expertise and knowledge of the housing market to raise and manage over $70 million in accredited investor capital.

Heart and Soul

Green Canopy NODE has already tallied an enviable list of accomplishments. As of this writing, they have built more than 300 Built Green and Earth Advantage Certified homes in and around Seattle and Portland, mitigated 33,000 metric tons of greenhouse gas, and steered investment to six major infill projects. And they’re just getting started.

This success isn’t just an outcome of their business acumen. It’s driven by a housing philosophy. Housing is the “nexus of our lives,” their website declares, “providing shelter, safety, and security,” a place “where one can develop a sense of love, belonging, acceptance with friends and family.”

Housing is also a solution to sprawl, homelessness, and climate change. Its importance goes far beyond profitability. It may seem idealistic, but the company genuinely believes that a change in paradigm requires a change in thinking. Fairchild says that a sense of mission permeates their company culture.

The Green Canopy NODE team, he says, shares a sense of purpose, and “a desire to regenerate communities and environments.” When they take on new team members and partners, they “look for people from communities seeking greater empowerment and renewal.”

Of course, technology, experience, and expertise are crucial to carrying out the day-to-day work. But it’s their focus on community that may be the key to unlocking the new homebuilding paradigm. It’s the heart and soul of Green Canopy NODE.

Article photos courtesy of Green Canopy NODE