Positive Changes Allow for Growth in Washington State
If you’ve been keeping up with Washington state housing news, you’ve likely encountered articles about House Bill 1110, or the “Middle Housing Bill,” passed in 2023. House Bill 1110 aims to increase the availability of affordable “middle housing” in the state by allowing increased development of multi-family buildings on land that was formerly zoned to only allow for single-family properties. The number of units in these new, now-allowed developments varies based on factors like the city’s size and how far the building would be from public transit.
However, even though there are restrictions on when and what you can build—as there always will be with new construction—the bill opens up the possibility for more multi-family housing and more opportunities for people who may not be able to afford a single-family home at this time to still own property. Although this bill’s effects are statewide, it is particularly exciting for densely populated areas, like Seattle and Tacoma, where so many residents of the state reside and work.
The bill not only creates ownership opportunities for buyers but also allows developers and investors to expand their businesses. One of my current listings on the market, a residential/commercial mixed-use zoned lot in Tacoma, is the perfect example of how this bill allows for expanded possibilities. The lot, sited in a central location mere blocks from the Link Rail system and close to UW Tacoma, shops, and entertainment, beckons builders who are interested in utilizing the land for anything from townhomes, a duplex, triplex, or mid-rise apartments. As we increasingly see the effects of House Bill 1110, properties like the one I am representing in Tacoma will become even more valuable.
For even more insights into the bill and how it’s expected to transform our local real estate market, tune into Realogics Sotheby’s International Realty’s new podcast series “Market Perspectives”. Episode one features my RSIR colleague, friend, and land acquisition and development expert Tadashi Shiga. Hosted by RSIR CEO and President Dean Jones, Tadashi and Dean dive into the positives of the bill, particularly given the lack of new development projects coming down the pipeline in the next few years in Seattle. Tadashi delves into the stark difference between the number of permits for new development construction in Seattle in 2020—which was 20,000—compared to the number of permits in 2024—currently only 6,000. A figure that low will affect the number of new buildings we see in 2025 and 2026, and, as we know, demand for middle housing is only rising.
In additional noteworthy local news, Seattle’s Sound Transit 3 project (a $53 million project first proposed in 2016) will potentially build 37 additional transit stations in an effort to provide more public transportation options to Seattle residents. Like the addition of more multi-family housing, more public transportation stops increase the livability within the growing city. Additional stations create more options for multi-family housing, as under House Bill 1110, the opportunity for development increases due to its requirements around proximity to public transit stops. Seattle continues to draw people in, both for work and recreation, with a projected number of 800,000 additional people living in the city by 2040. As the city grows, projects like the Sound Transit 3 and legislature like House Bill 1110 allow for our infrastructure and housing to grow with the population—a necessary change to ensure our cities remain affordable, innovative, and inclusive.
If you’re interested in discussing our local news and market trends, please reach out to us.