Washington’s ‘upzoning’ law seeks to expand supply as Seattle home prices soar

A new law going into effect this summer in Washington aims to address the state’s housing supply woes. The legislation lifts zoning restrictions to allow for more multifamily development and comes as the median single-family home price in the Seattle area set a new record by exceeding $1 million.

H.B. 1110 was passed in 2023 and seeks to “increase middle housing in areas traditionally dedicated to single-family detached housing,” according to the language of the bill.

The so-called “upzoning law” garnered bipartisan support despite some noted opposition from some Republicans. But the leader of Washington’s minority party was also a supporter, saying that too many land-use restrictions infringed on the rights of owners to develop their property as they see fit.

While a prior version of the bill sought an outright ban on single-family exclusive zoning, the final version took a more measured approach in a way that advocates said could still positively impact the state’s housing supply.

In light of the law becoming effective in July, an NBC News affiliate in Seattle spoke with area real estate brokers and developers on the potential impact it could have on housing availability across the state.

“The homeownership feel isn’t as driven into people as it used to be, but it’s starting to come back,” Tom Skepetaris, a Seattle-based real estate broker, told the outlet. “We’re seeing more inventory, especially on the new construction side of things. So, there is that ability to not rent and give your money away to someone else.”

Dean Jones, CEO of the largest Sotheby’s International Realty affiliate in the Pacific Northwest, also struck an optimistic tone about the potential impact of the bill.

“House Bill 1110 is going to allow an entirely new generation of homeownership and effectively provides a reset button for those that might have missed the last run of real estate in the last 10 years,” Jones said.

Todd Karam, client relations director with local developer Range Properties, described some of the company’s current activity as the “future” of housing in the state.

He cited projects such as one in West Seattle featuring six 800-square-foot homes on a 5,500-square-foot lot. Each home has two bedrooms and 1.5 bathrooms and lists for about $500,000. That price is roughly $1 million lower than a comparable single-family home in the same part of town.

“We’re building what we want to see and what we think the future of building is,” Karam said. “This is what not only builders will want but what end users will want, and it’s about efficiency.”

Part of the reason this could make a difference in an area like Seattle comes down to the area’s high costs. The need for inventory is clashing with limited land availability, permitting fees and construction costs, the report pointed out.

The new law takes effect in July in the wake of other recent moves made by the state to address housing issues.

Earlier this week, Gov. Bob Ferguson (D) signed a package of 10 bills into law that specifically seek to address housing issues. These include a controversial rent-cap bill, property tax relief for veterans, condominium construction and the spurring of development via changes to parking regulations.