The 2026 Washington State legislative session kicks off January 12, and it will be fast, fiscal, and highly consequential for housing. As a 60-day supplemental budget session, lawmakers enter Olympia facing mounting housing affordability pressures, limited time, and a constrained budget.

Governor Ferguson’s proposed 2026 supplemental budget aims to address an estimated $2.3 billion shortfall in the 2025-27 biennium. The proposal relies on spending reductions, tapping the state’s rainy-day reserve, and reallocating existing funds, rather than new taxes in the supplemental.

The shortfall reflects slower revenue growth, driven by weaker real estate activity and employment, alongside rising costs to maintain existing services. As a result, budget negotiations are expected to focus on fiscal prioritization and cost containment, with renewed discussion of potential revenue options. This includes proposals such as a payroll expense tax on large employers, changes to property tax growth limits, and renewed discussion of a high-income or “millionaire” tax as lawmakers weigh options to address the budget gap.

Despite these constraints, housing remains a top priority. Lawmakers broadly agree that we cannot address affordability without building more homes—but debate continues over how to do that.

Given budget realities, the most viable housing policies will be those that speed delivery, reduce risk, and avoid adding new costs. That is exactly where Master Builders Association of King and Snohomish Counties (MBAKS) is focused.

MBAKS 2026 Legislative Priorities: A Practical Path to More Homes

In 2026, MBAKS is advancing a focused, solutions-oriented agenda aimed at reducing delays, lowering costs, and expanding housing opportunities across Washington. Our priorities reflect what builders experience every day—and what moves the needle on affordability.

Subdivision Reform & Streamlining

Washington’s subdivision laws are outdated and unnecessarily complex. MBAKS supports modernizing subdivision statutes by clarifying pre-application requirements, requiring administrative approval of plats within urban growth areas, and encouraging concurrent review of plats and construction plans. These changes will shorten timelines, reduce risk, free up local staff capacity, and expand infill housing opportunities (HB 1818; SB 5633).

Clear & Objective Development Standards

Subjective regulations create uncertainty, delays, and higher costs. MBAKS supports legislation to ensure local development regulations are clear, objective, and predictable, leading to faster and more reliable permit approvals (SB 5613).

Self-Certification & Review Cycles

Redundant reviews drive up costs without improving outcomes. MBAKS supports allowing licensed professionals to self-certify code compliance and limiting projects to three review cycles when standards are met, preventing endless delays (SB 5729).

Building Code Pause

Constant code changes add cost and uncertainty. MBAKS supports rebalancing the Building Code Council’s membership and pausing frequent code updates to stabilize construction costs and improve affordability.

Rural Accessory Dwelling Units (ADUs)

Rural communities also need housing solutions. Streamlining Accessory Dwelling Units (ADU) permitting in rural areas can support multigenerational living, expand housing choices, and strengthen rural communities (HB 1010).

Oppose Increases to Fees, Taxes, & Housing Costs

At a time of record affordability challenges, Washington cannot tax or fee its way to more housing. MBAKS will oppose policies that increase housing costs through higher fees or taxes and continue advocating for solutions that make homeownership more attainable.

The Bottom Line

The 2026 session will test whether Washington is serious about addressing housing affordability. With limited time and tight budgets, success will hinge on cutting red tape, restoring predictability, and resisting policies that drive costs higher. MBAKS will remain at the table throughout session, advancing practical reforms that help builders deliver the homes Washington urgently needs.

Contact:
Stephanie Giralmo, Public Relations & Media Manager
Master Builders Association of King and Snohomish Counties
p 425.457.7067

FOR IMMEDIATE RELEASE

MBAKS Promotes Jerry Hall to Serve as Executive Director

“For me, the importance of the association’s purpose is heartfelt and personal,” said Jerry Hall, Executive Director of MBAKS. “We are fortunate to live in a region that has enjoyed extraordinary economic success over the last few decades, yet, because the supply of housing did not keep pace with our growth, the cost of housing has reached unattainable levels for too many.”

Hall holds a Bachelor of Arts in Economics from Whitman College and a Master’s in Business Administration from Harvard Business School. With decades of business leadership experience, he joined MBAKS in August of 2018, serving as its Chief Operating Officer. Shortly thereafter, he began serving as its Chief Financial Officer, and most recently as the organization’s Interim Executive Director.

“We are at a tipping point in our region and access to housing is becoming increasingly difficult” stated Hall. “I’m honored to be given the opportunity to lead the vital work MBAKS does in making home ownership possible for generations to come.”

About MBAKS

Founded in 1909 and headquartered in Bellevue, Washington, the Master Builders Association of King and Snohomish Counties (MBAKS) is the nation’s oldest and largest local homebuilders’ association. Like our founders, our members continue to take a leading role in all facets of homebuilding and support the planning for a growing region. From new technology to advances in sustainability, from collaborative public policy efforts to investing in our communities, our commitment to a thriving, inclusive and well-planned region never wavers. We are the professional homebuilders, architects, remodelers, tradespeople (carpenters, framers, roofers, plumbers, electricians), planners and engineers, suppliers, manufacturers, and sales and marketing professionals in your community who believe everyone deserves access to a healthy and productive place to call home.

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By MBAKS Senior Policy Analyst Allison Butcher

Housing Demand Continues to Outpace Supply

The September Builder's Bulletin shows signs that our region's housing supply and demand continues to be out of balance, with housing inventory for sale hovering around one-month's supply in King and Snohomish counties and home prices still on the rise. The median price of single family homes in King County rose 18.56 percent year-over-year in July to $658,000. The median price in Snohomish County rose 11.87 percent to $453,085.

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: