Washington state and the Puget Sound region are experiencing a significant housing supply shortage. The latest numbers from the Northwest Multiple Listing Service show that we have less than a two-week supply of homes for sale in King and Snohomish counties. For perspective, many industry analysts consider a four-to-six-month supply as an indicator of a healthy market.

The Puget Sound Regional Council has said in their Housing Needs Assessment that our four-county Puget Sound region needs 800,000 new homes by 2050 to meet the future need. For King County alone, the Regional Affordability Task Force has reported a total of 244,000 net new homes are needed by 2040 to meet demand. At this point we are already starting several hundreds of thousands of homes behind.

Why does this matter?
Limited housing supply increases the costs of homes, which makes becoming a homeowner out of reach for more community members.

According to the Northwest Multiple Listing Service January data, the median price for single-family homes in King County rose 9.46%, from $740,000 a year ago to $810,000. In Snohomish County, the median price rose 22.06%, from $573,495 to $700,000.

What created this housing supply shortage?
There are several factors that contribute to the housing supply shortage in our region and hinders our industry’s ability to add more affordable housing choices. These factors include:

• Inflation driving up the costs of building materials 

• Limited land supply on which to build

• Local development regulations not aligned with meeting the urgent need for more housing

• Permit delays

• Persistent labor shortages making is challenging to keep projects on schedule

• Supply chain disruptions

Additionally, King County is experiencing a shortage of concrete due to a nearly three-month long strike across numerous local concrete companies. Most American home foundations are concrete, along with other integral outdoor features such as pathways, stairs, and sidewalks. The inability to get concrete to builders’ jobsites is inhibiting their ability to meet the demand for additional housing.

Where does MBAKS fit into this?
Driven by our mission, MBAKS is committed to ensuring all people can attain housing. One way we do this is through our advocacy work. Our government affairs team is dedicated to making sure our members have a voice in policy and regulatory debates that directly impact the housing industry. Only through our direct participation in this dialogue can we hope to create a better climate for housing.

On December 11, 2025, the U.S. House of Representatives passed the National Association of Home Builders (NAHB)-supported Promoting Efficient Review for Modern Infrastructure Today (PERMIT) Act. The legislation focuses on reforming federal permitting requirements under the Clean Water Act with the goal of reducing delays and uncertainty that can slow housing and infrastructure projects.

The vote moves the bill to the U.S. Senate, where lawmakers will continue debating how to balance environmental protections with the need to build homes and infrastructure more efficiently.

What the PERMIT Act Does

The PERMIT Act is intended to streamline environmental permitting and reduce regulatory uncertainty that builders and infrastructure providers say contributes to rising costs and project delays. Key provisions of the bill include:

• Clarifying Clean Water Act jurisdiction by redefining “waters of the United States” and codifying exclusions for features such as waste treatment systems, ephemeral streams, and groundwater.

• Extending and improving nationwide permits to provide longer, more predictable authorization timelines.

• Establishing limits on judicial review timelines to reduce prolonged litigation and project delays.

• Addressing backlogs and inefficiencies in the issuance of jurisdictional determinations.

• Restoring a clearer pathway for states to assume control of their own wetlands permitting programs.

Lawmakers also adopted an NAHB-supported amendment on the House floor that would reduce compensatory mitigation costs through targeted, commonsense reforms. The amendment is intended to maintain environmental protections while improving predictability and supporting economic growth.

Supporters argue these reforms will create regulatory certainty, lower development costs, and help accelerate housing and infrastructure production at a time of acute national need.

What Happens Next

With House passage secured, the PERMIT Act now moves to the U.S. Senate, where its future remains uncertain. The legislation is expected to be part of a broader debate over federal permitting reform, infrastructure delivery, and housing affordability. For homebuilders and policymakers focused on reducing costs and delays, the outcome could have meaningful implications for how quickly new housing and infrastructure projects can move from proposal to construction.

For more details, view the NAHB blog or contact Dylan Sluder, State Government Affairs Manager, at MBAKS via 425.451.7920 for additional information.

By MBAKS Senior Policy Analyst Allison Butcher

Seattle Metro Area Sees Uptick in Single Family Permits in 2016

King County ended 2016 with a 7 percent increase in single-family permit activity compared to 2015 and a 7 percent decline in multifamily permits, according to U.S. Census Bureau data. Meanwhile, Snohomish County saw a 13 percent increase in single family permits and a 2 percent increase in multifamily permits at year's end. Both counties continued to have less than one month's supply of housing inventory for sale during January 2017.

The Builders' 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: