By Marc Stiles, Puget Sound Business Journal (subscription required)

The size of new houses on Mercer Island will be limited more than anywhere else in the region starting Nov. 1, when new restrictions that the city council approved on Tuesday take effect.

The council voted 5-1 to update the city's residential design standards and approved a new rule to protect mature trees.

The code update affects all of the 6,950 single-family lots on the island, which is a choice market for builders of new homes. The island's average household income of $183,200 is the Puget Sound region's second-highest behind Medina, according to Puget Sound Business Journal research.

New construction and remodeling projects can still be vested under the old code until the end of October, city spokesman Ross Freeman said.

After that, new homes won't be able to cover more than 40 percent of a lot, down from 45 percent. Maximum heights have been cut from 35 to 30 feet, and at least 30 percent of large trees must be kept when a lot under goes major construction. The rules also limit the amount of "hardscape" surfaces, such as decks and patios, to 9 percent of a lot.

Residents who pushed for the change raised concerns about how quickly the character of their neighborhoods have been changing, with old houses being replaced by larger ones.

While the city has been working on the update for about a year, critics say the city rolled out the new rules hither and yon, discussing different changes at different times. They were not discussed as a comprehensive package, according to the Master Builders Association of King and Snohomish Counties, which asked council members to slow down the process and consider their recommendations.

"This is a lose-lose. The (homebuilding industry) was not heard and the community's primary concerns were not addressed," David Hoffman, a government affairs staff member for the homebuilders, said after Tuesday's council vote.

People are still going to build big houses that will upset some neighbors, he said.

By MBAKS Senior Policy Analyst Allison Butcher

The number of multifamily permits pulled in King, Snohomish, and Pierce counties rose 53 percent during the first quarter of 2017, compared to the same period last year. Single-family permits declined 8 percent. Meanwhile, King and Snohomish counties continue to see less than a months’ supply of housing inventory for sale during April. The low supply coupled with strong demand has continued to drive home prices up.

The Builder’s Bulletin is intended to provide a convenient way to track housing in our market and includes information from the Northwest Multiple Listing Service, U.S. Census Bureau, Office of Financial Management and the Washington State Employment Security Department.

Download this month's report:

Homing in on Our Region's Housing Statistics

Despite headlines about a housing market cooldown and home prices dipping slightly compared to last month, median housing prices continue to rise year over year, with an 8.03% rise and a 22.29% rise in King and Snohomish counties, respectively, for combined single family and condo sales. Likewise, for-sale housing supply continues to drop, with both King and Snohomish counties—and much of the state—more accurately described as having weeks of supply, not months. Year over year, months of supply dropped 59% in King County and 37% in Snohomish County. There is at least some relief on the horizon, however, as year to date residential building permit activity is up 30% in our two-county region.

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Months' Supply of Housing Inventory

As of November 2021

	King County had 0.38 months' supply of inventory (down from 0.93 months' of inventory a year ago).
	Snohomish County had 0.24 months' supply of inventory (down from 0.38 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

November 2021

	The median price of single-family homes and condos was $740,000 in King County and $658,505 in Snohomish County.
	For single-family homes only, the median price in King County rose 12.25%, from $730,500 a year ago to $820,000. The median price in Snohomish County rose 22.79%, from $566,000 to $695,000.
	In Seattle, the median price of single-family homes and condos was $765,000. The median price for single-family homes only was $850,000, a 3.66% increase from $820,000 in November 2020.

Source: Northwest Multiple Listing Service

Building Permit Activity

Jobs

	The seasonally adjusted Washington unemployment rate for November 2021 is 4.7%; for Seattle/Bellevue/Everett, it is 4.4%.
	Construction employment in Washington increased by 1,800 between October 2021 and November 2021. Total construction employment is 229,400 statewide and 110,200 for Seattle/Bellevue/Everett specifically.

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