The Evolving Housing Landscape of Seattle: Understanding New Rules and Zoning Changes
Have you ever wondered about the architectural changes in your neighborhood? If so, you're not alone. Recently, our colleague Linda Chou penned an insightful article for the Realogics Sotheby's International Realty blog that caught our attention. Linda, like many of us, was curious about the construction changes on her street. We found the contents of her article so informative and timely that we wanted to share it with our sphere.
A few years back, a diminutive steep lot across from Linda’s home had surveyors mapping its area. Fast forward to today, and there stands a wide, tall building that, to Linda, feels somewhat out of place. It's intriguing to note how, just years ago, she faced a hard denial from the city on a simple variance request, while this new structure appears to defy many of the rules she thought were stringent.
1. So…Why The Drastic Changes?
Seattle's real estate scene has been undergoing significant transformations. The city's surge in pricing is, in no small part, attributed to the booming tech sector, which has ushered in a wave of high-income professionals. This influx has spurred an affordability crisis for many.
To illustrate, data shown below, courtesy of David Drake & Associates, reveals that in just the past half-decade, median rents have skyrocketed by approximately $600 monthly. Compounding the situation is the reduced rental inventory, a fallout from the exodus of local landlords during the pandemic. The reasons? Financial pressures triggered by city-imposed regulations to support the swelling number of laid-off workers.
Yet, contrary to popular belief that many are leaving Seattle, statistics tell a different story. The city is witnessing an influx, which translates to a pressing demand for housing.
For a deeper dive into these trends, check out "Bridging the Supply and Demand Gap" from the 2023 Forecast Report.
2. Enter ADUs and DADUs
To mitigate the housing shortage, Seattle has introduced regulations to foster density on single-family lots. These range from promoting greater density within these lots to a campaign for multi-unit constructions across the city.
For homeowners, this means the ability to erect up to three units on their property. These could either be ADUs (Accessory Dwelling Units), which are apartments integrated into the primary residence with a separate entry, or DADUs (Detached Accessory Dwelling Units), freestanding structures like backyard cottages. Such transformations effectively convert a single lot into three housing units. And for those aspiring to sell these individually, forming an association akin to an HOA becomes vital. Interestingly, the once mandatory additional parking provision is now obsolete.
If you're curious about the construction developments in your vicinity, the City of Seattle offers a search feature that provides an overview of projects by address.
3. The Bigger Picture
Beyond the neighborhood scope, a statewide legislative shift is underway to accommodate more multi-family buildings. Notably in Seattle, proximity to significant transit hubs can greenlight the construction of six-plexes, while other zones are cleared for duplexes and four-plexes. Although the Seattle City Council is still refining the comprehensive plan for this initiative, the momentum is palpable. Areas protected from these densification efforts will be communities with specific association mandates barring multiple homes on a lot.
Expectations are high for an approved plan by fall 2024. However, a sudden construction boom post-approval is improbable. It will be a progressive shift, but Seattle's housing canvas is undeniably evolving.
4. Final Thoughts
The ongoing inventory crunch remains a pressing concern. It's still uncertain if these new zoning rules will alleviate the housing strain or usher in fresh challenges for current homeowners. Rest assured, we're monitoring these developments closely. As global real estate advisors, we're poised to decode the headlines and support your property ventures.
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