By MBAKS Senior Policy Analyst Allison Butcher

The latest Builders Bulletin shows year-to-date permit activity through April fell 18% for single-family homes and 37% for multifamily homes in King County compared to the same period last year. Single-family permits were up 6% and multifamily permits up 60% in Snohomish County. Pierce County saw a 5% drop in multifamily permits and a 21% increase in single-family permits. Meanwhile, the May jobs report shows construction employment increased by 30,000 between April and May, reflecting a gain from the previous month’s significant job losses due to the construction shutdown.

The Builder's Bulletin is intended to provide a convenient way to track housing in our market and includes information from the Northwest Multiple Listing Service, State of the Cities Data Systems, Office of Financial Management, and the Washington State Employment Security Department.

Download this month's report:

Homing in on Our Region's Housing Statistics

King County multifamily construction is on the upswing after three months of depressed permits following the implementation of the 2018 Energy Code. 91.7% of those multifamily units—and all of the multifamily growth in King County—are in buildings with five or more units; permits for two- to four-unit housing remain low. King County single-family permits have also hit a high for the year, although it is slightly lower than permit numbers at the same time last year. With less than one month of supply in both King and Snohomish counties, more housing production is desperately needed.

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Months' Supply of Housing Inventory

As of August 2021

	King County had 0.62 months' supply of inventory (down from 1.16 months' of inventory a year ago).
	Snohomish County had 0.49 months' supply of inventory (down from 0.69 a year ago).

Many industry analysts consider a four-to-six-month level as an indicator of a healthy market.

Source: Northwest Multiple Listing Service

Median Home Price

August 2021

	The median price of single-family homes and condos was $771,750 in King County and $667,410 in Snohomish County.
	For single-family homes only, the median price in King County rose 14.41%, from $742,950 a year ago to $850,000. The median price in Snohomish County rose 25.21%, from $555,000 to $694,900.
	In Seattle, the median price of single-family homes and condos was $799,000. The median price for single-family homes only was $875,000, a 6.06% increase from $825,000 in August 2020.

Source: Northwest Multiple Listing Service

Building Permit Activity

Jobs

	The Washington unemployment rate for August 2021 is 5.1%; for Seattle/Bellevue/Everett, it is also 5.1%.
	Construction employment in Washington decreased by 1,600 between July 2021 and August 2021. Total construction employment is 224,200 statewide and 107,300 for Seattle/Bellevue/Everett specifically.

Source: Employment Security Department: WA Employment Estimates (Seasonally Adjusted), August 2021 and Bureau of Labor Statistics.

Population

The Puget Sound region's population as of April 1, 2021 was 4,330,400. Over the past year, the region added 66,200 people, as follows:

Source: Office of Financial Management

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Administrative design review processes implemented due to COVID-19 are permitting housing faster. We should consider making them permanent.

Excerpt from design review document for Queen Anne mixed-use Safeway redevelopment

Washington state is experiencing an unprecedented shortfall of housing, coming short 225,000 homes between 2000–2015 to meet housing needs. The Puget Sound region is projected to add 1.8 million more people and 1.2 million more jobs by 2050, which means if we want to accommodate for growth, we cannot afford to stall building.

On April 27, 2020, Seattle City Council passed CB 119769. With COVID-19 rendering the usual community meetings unsafe and projects backing up in the pipeline, this emergency measure allowed projects subject to full design review to opt into administrative design review (ADR) instead.

Developers and builders could choose this expedited process or wait until the design review board resumed business. Under ADR, city staffers, rather than volunteer design review boards, had final approval. Public comments on projects continued through email in a 14-day window. Affordable housing projects were exempted altogether.

SDCI also implemented video or virtual inspections of approved projects, meaning that wait times for land use, permitting, and final inspections have also been streamlined as city staffers continue to work from home.

These streamlined methods meant to alleviate pressures during a health crisis show us that these same expedited processes can also help address our housing crisis.

We have the technology readily available for moving public comments and inspections onto virtual platforms, helping to mitigate costs and ultimately move affordable and missing middle housing through the pipeline faster.

What kind of benefits would a streamlined process produce?

More Affordable Housing

Unnecessary delays add up. The high cost of design review is passed down to renters and buyers alike and can have devastating consequences. Having proposals return for review and comment through multiple meetings, stalling construction for six months to two years, costs thousands of dollars for every month of delay. Multifamily projects that spend less time in design review ultimately end up being less expensive.

For an in-depth look: How Seattle’s Design Review Sabotages Housing Affordability, Dan Bertolet, Sightline Institute

More Housing Types

Exempting affordable housing projects frees up more time for city staff to look over other projects that sit in design review limbo for too long. On top of that, certain housing types, like townhouses and smaller multifamily buildings, could get faster approval processes or be exempted completely based on their size. More housing types means more housing choices means more housing for everyone.

Administrative design review shows us a glimpse of what could be an effective alternative, pending a more intensive design review overhaul in the city of Seattle. Cities looking to address rising housing costs and create efficient permitting processes could—and should—consider eliminating design review altogether.

We understand those concerned about not having a say in how their neighborhoods are designed. We know it’s important for neighbors to come together in shaping their communities. But it should not come at the expense of people having a safe and healthy place to call home.