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Washington’s subdivision laws are outdated and unnecessarily complex.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.

By MBAKS Senior Policy Analyst Allison Butcher

Statistics from the Northwest Multiple Listing Service, highlighted in the October Builder’s Bulletin, show an increasing supply of homes for sale in the month of August. King County had 1.92 months’ supply of inventory, up from 0.93 months’ supply a year ago. Snohomish County had 1.70 months of inventory, up from 1.11 a year ago. This increase in supply, while still low, has moderated price increases.

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, State of the Cities Data Systems, Office of Financial Management and the Washington State Employment Security Department.

Download this month's report:

Each election cycle, our Affordable Housing Council (AHC) interviews candidates at the city, county, and state levels to determine their degree of support for our industry.

The following candidates have received an AHC endorsement for the 2021 election cycle. 

Ballots will be mailed out Wednesday, July 14 and are due Tuesday, August 3. Your vote in support of AHC-endorsed candidates will go a long way toward affecting the outcome of these critical races. 

For dropbox locations, ballot questions, and more, visit King County Elections or Snohomish County Elections.