The State of Seattle's Housing Affordability

“Uncoordinated and unplanned growth, together with a lack of common goals...pose a threat to the environment, sustainable economic development, and the health, safety, and high quality of life enjoyed by residents of this state. It is in the public interest that citizens, communities, local governments, and the private sector cooperate and coordinate with one another in comprehensive land use planning.” (RCW 36.70A.010)

"I believe this (a comprehensive plan) is the most important thing we're undertaking in this city for the next 20 years”

Norm Rice Seattle City Mayor1994

HighPrices:Priceisaquantitativemeasureof

supplyanddemand

“Housingisnotaffordable!”Bytaking

averagewagesofcertainjobsandcomparingto

averagehousingprices,thisconclusionisreached.

“Costburdenedhouseholds.”Acountof

howmanyhouseholdsinthecityarepayingsome

amountover30%oftheirgrossincomeonhousing.

“Weneedunits!”Thisprocessleadsinevitablyto

amandatetocreatesubsidizedunitsequalto

thenumberofexistingcostburdened

households.

Solutions

Use better measures of the problem using data from market studies, not census data;

Affordability is defined arbitrarily (30 percent standard) and we need a better measure;

We need to understand why housing costs what it does to produce and how to reduce those costs and barriers to the market (e.g. ULI’s Bending the Cost Curve study);

Households struggling with housing costs are usually struggling with many other expenses as well;

Producing subsidized units is necessary, but it doesn’t address the critical issues of price and current need;

We need to consider broader and thinner tax models that are based on inefficient use of land (e.g. tax large lot single-family, land value taxes);

Use direct cash payments to ameliorate housing and other costs, save unit construction for the poorest and neediest; and

Explore financing tools like Tax Increment Financing (TIF)

Discussion Questions

• Is your community facing a housing “crisis?” When did it start? How will you know it’s over?

• Is there a better way to measure affordability?

• Wouldn’t direct payments to cost burdened households be more efficient than buying land and building units?