Change is coming to communities across Washington State. Do you need guidance about what middle housing means for your buyers and sellers? Middle Housing - duplexes, triplexes, cottages, ADUs, and increased density - is already impacting what can be built on a property. Knowing where, what, and when these changes are coming to your community will be critically important. The Middle Housing Resource Center, will be chock-full of videos, resources, and more, all designed to help you become an essential expert to your clients.
Club Zebra Members receive a 30% discount during checkout.
I just got back from Spokane where I attended our state legislative meeting for Building Industry Association of Washington (BIAW) and I am here to give you an update on what we have been focusing on and what you can expect over the next year.
Everything I'm going to talk about today affects housing and today we are talking about the top five issues that we are going to be facing in the next few years. This is so important because we are all at such a disadvantage when it comes to housing inventory. Don't let the present increase in inventory fool you into thinking that everything is good.
That sudden increase in inventory isn't because we have more houses, it's because the pressure has been mounting over people who simply can't wait any longer to move. Interest rates have been stuck in place and people just cannot wait any longer for things to change, so we are seeing that resistance to interest rates and home prices start to break. They need to sell. Yes, we have an increase in inventory, but we have a backlog of buyers that also need to buy.
I'll provide more details on these issues and beyond as policy takes shape, but today I'm sharing the big-picture view on building and housing reform.
The problem builders and developers are having is that permitting and inspection times - at the permitting level - are taking too long! For example, maybe you have a wetland report that needs to be inspected. That takes time and unfortunately many of these civil departments that perform this kind of work have been chronically understaffed for years. So, we have been looking at ways to reform this system both at the state and national level.
We need impact fee reform in a huge way. Our utility connection costs vary widely from one city, county, area to another - with some areas having four-or-more times more expensive fees than neighboring areas. We need a more uniform system that makes more sense for how we charge for connections to utilities and our environmental impact fees.
This affects all of our state's drive for more middle housing and now we are moving the density discussion forward onto the topic of lot-splitting, condoization of units, and the creation of workforce housing. With respect to land-use we are looking for ways to utilize government owned land - and there is a lot of it - to use to build more affordable project. Raw land costs continue to climb and the costs of getting land lot-ready has gone through the roof. Reforming government land ownership can bring relief to part of that cost equation, that can help at the other end of the affordability spectrum when it comes to housing.
Whether you prefer "Attainable Housing" or "Affordable Housing," it doesn't change the fact that we need more affordable housing. A lot of our local cities and communities are struggling with balancing their budgets, but have a wealth of land that they control. Great! Sell some of that land at an affordable price. Put requirements on what can be built there so that an affordable product can be built on it. I'm not talking about "low end" housing, I mean affordable workforce housing so that people can afford to live in the communities where they work.
I was recently looking at a map of Bellingham. I was looking at all the available lots - fill lots - that could be bought, but there was a problem preventing building from happening. Local tree canopy laws. These laws protect important cooling and greenery of our cities, but managed regulation around this. Empty lots need a variance to allow builders to find creative solutions for turning empty, buildable lots into housing in our cities. This is just one example of regulation preventing very usable land from turning into housing, land that often doesn't require new infrastructure costs.
These five issues provide opportunities for reform that utilizes resources that we already have to make more affordable housing and building possible. I think Washington State is moving faster on this kind of reform than we are going to see from federal reform. Our next legislative session runs from January to April and it is going to be robust! I'll be meeting with other members every Tuesday morning as an advocate for real estate agents and more housing opportunities.
I urge you to also get involved. Whether with your local association, at the state level, or even nationally. Decision makers need to hear the expertise and opinions of brokers "in the trenches." Whether you feel like you are an expert yet or not, your voice matters. We always want more people to be involved.
By Denise Lones CSP, CMP, M.I.R.M.The founding partner of The Lones Group, Denise Lones has over three decades of experience in the real estate industry. With agent/broker coaching, expertise in branding, lead generation, strategic marketing, business analysis, new home project planning, product development and more, Denise is nationally recognized as the source for all things real estate. With a passion for improvement, Denise has helped thousands of real estate agents, brokers, and managers build their business to unprecedented levels of success, while helping them maintain balance and quality of life.