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March 2026 Builders Bulletin: Building Permits Slowed in 2025

The March Builders Bulletin features recently released permit data for the Seattle metropolitan area through December 2025. Our three-county metro area (King, Snohomish, and Pierce counties) ended the year with 12% fewer total permits issued than the previous year. This figure reflects a 5% decline in single family permits and a 16% drop in multifamily permits.

Despite the regional slowdown, King County saw a modest bump in single family permits in 2025 while Pierce County experienced an increase in multifamily permits. See the Building Permits section for a complete breakdown by county.

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2026 Legislative Session Recap: Legislature Adjourns Sine Die

The Washington State Legislature adjourned sine die on March 12, ending the 60-day 2026 session. Lawmakers passed several housing reforms aimed at improving permitting, expanding housing flexibility, and supporting homeownership, while the session’s final days were dominated by budget negotiations and a controversial new “millionaires’ tax.”

MBAKS Advocacy During Session

MBAKS members played an active role throughout the session, helping ensure the voice of the homebuilding industry was heard in Olympia. During MBAKS Hill Day, members held 43 meetings with legislators, discussing housing supply challenges and priority housing legislation. Builders also participated in BIAW Hill Day, where members conducted 13 additional legislative meetings. MBAKS members Mark Villwock with DR Horton and Mike Appleby with Chicago Title also provided key testimony on housing legislation during committee hearings, sharing firsthand industry perspectives on how policy decisions impact housing production and affordability.

Key Housing Bills Passed

Condominium Reform (HB 2304)
Allows condominium projects up to four stories and twelve units to use an insurance-backed express warranty, helping reduce litigation risk and encourage smaller condominium development.

Permit Review Streamlining (HB 2418)
Clarifies permit application completeness standards and requires jurisdictions to designate a permit contact, improving predictability in the review process.

Commercial-to-Residential Flexibility (SB 6026)
Allows housing in many commercial and mixed-use zones in cities over 30,000. Cities may require ground-floor commercial uses on no more than 40% of commercial or mixed-use acreage, allowing redevelopment of underutilized commercial property for housing.

Rural Accessory Dwelling Units (HB 1345)
Authorizes counties to allow detached ADUs in rural areas under local regulations.

Middle Housing in Urban Growth Areas (HB 2269)
Extends middle housing types such as duplexes and townhomes to unincorporated urban growth areas.

Building Code Modernization (HB 2228 & SB 5156)
Updates building code provisions by allowing scissor stair designs in certain mid-rise buildings and modernizing elevator requirements.

Budget and Tax Policy

Lawmakers also approved a supplemental operating budget for the 2025–27 biennium totaling more than $80 billion. The budget addresses a projected shortfall through a mix of spending changes, new revenue, and transfers from the state’s rainy-day fund.

The session also saw passage of a new “millionaires’ tax” (SB 6346), imposing a 9.9% tax on income above $1 million starting in 2028. The policy is expected to face legal challenges under Washington’s constitutional restrictions on income taxes.

Looking Ahead

With the session complete, attention now shifts to implementation as state agencies and local governments begin putting these new housing policies into practice.

Read more about the legislative session and a full bill tracker on MBAKS Connect.

Forty MBAKS members and staff traveled to Olympia Thursday, January 29 for our Annual Hill Day where we met with elected leaders to advocate for housing. The event was timed strategically just before the first policy committee cutoff, ensuring that industry voices were heard at a pivotal time for our priority bills.

MBAKS took part in 43 meetings with legislators from King and Snohomish counties, as well as the Governor’s office and Lieutenant Governor Denny Heck, to elevate our housing priorities.

“This year marks the highest number of face-to-face meetings ever held on one of our Hill Days,” said Dylan Sluder, MBAKS’s state government affairs manager. “Many thanks to our MBAKS members who showed up, shared their expertise, and helped make the day such a success!”

Read MBAKS’s 2026 State Legislative Priorities to learn more about the bills members highlighted in conversations with state leaders.

In addition to meetings with legislators, MBAKS had the opportunity to participate in a legislative hearing on one of our priority bills to modernize and streamline state subdivision laws, SB 5633. The bill was heard by the Senate Local Government Committee on January 29.

Special thanks to MBAKS members Mark Villwock of DR Horton and Ian Faulds of Core Design for joining MBAKS General Counsel Brian Holtzclaw in testifying on behalf of this priority legislation.

Hill Day is MBAKS’s most important advocacy event of the year. It’s an opportunity for members to engage directly with Washington state legislators and share real-world perspectives on how state policies affect housing supply, affordability, and our ability to deliver homes in our communities.

Read our latest Legislative Session Update.