Affordable housing in Seattle: a touchy subject

By: Mary Strow
12:00 am
September 16, 2016

Housing in Seattle proper, and the greater Seattle region, is expensive. And with many more residents expected to settle here in the coming years, people are looking for ways to increase the housing supply. But adding more housing – especially within the City of Seattle itself – is proving to be a highly controversial issue.

On Monday in the University District, as SeattlePI.com reported, Seattle Mayor Ed Murray faced a protest from members of the Seattle Displacement Coalition, which objects to his plans to "upzone" (ie, create more density in) that and other city neighborhoods.

The PI explains "what the fight is all about:"

In the U District rezone plans, several areas within the urban village boundary would have height limits lifted to as high as 320 feet, depending on use, with other areas upzoned more modestly. The proposal also includes plans for open public spaces, historic preservation and design standards.

Murray’s plan touts that 40 to 275 homes, many considered affordable, will be demolished in the next 20 years, with or without zoning changes. Meanwhile, with the new zoning plan, up to 910 affordable homes will be created.

"Affordable” in this case means housing that would be set aside for people earning up to 60 percent of area median income — $37,980 for a single person up to $71,520 for a family of eight. Rents are set at roughly 30 percent of their income.

Opponents instead see the upzoning destroying roughly 1,500 affordable units, either directly through demolition or indirectly through rent increases spurred by tax hikes (spurred by increased values).

“It will set off a wave of speculative activity,” said John Fox, coordinator for the Seattle Displacement Coalition.

Fox and other opponents believe current zoning would allow for plenty of added density without adding tall towers to the mix.

Meanwhile, yesterday the Master Builders Association (MBA) of King and Snohomish Counties held its 2016 Housing Summit in Bellevue. Seattle King County Realtors was there:

The objectives of the summit “are multi-fold, but all serve a singular goal: to increase the supply of affordable housing for all of our region’s residents,” said Shannon Affholter, Executive Director of the MBA. “It’s troubling that too many families can’t find a home in today’s housing market,” said Affholter.

It's getting harder for homebuyers of more modest means to compete against those with more money:

John DesCamp, Vice President for Washington Trust Bank, gave a presentation about the challenges of homeownership from a lenders perspective. “As down payment decreases, affordability decreases… Just getting a loan can be a barrier to access housing with massive competition coming from cash buyers and quick closings.”

Seattle Times reporter Mike Rosenberg tweeted this photo from a presentation, indicating how difficult it is to buy a home these days:

Washington Research Council affordable housing Seattle King County

Gov. Jay Inslee also spoke:

Inslee was the keynote speaker and gave a presentation on both the opportunities and challenges brought on by population growth. “The reality is we are not keeping pace with the demand… We need to build more housing for people. It should be a fundamental goal of the state.”

Everybody seems to agree on the problem, but it certainly looks like the solution or solutions, as the PI noted, will "be a battle every step of the way."

Categories: Categories , Economy.
Tags: affordable housing , housing