As Washington State’s population grows, particularly in urban centers like the greater Seattle area, one major concern continues to create obstacles for Washington residents: a lack of affordable housing. If you’ve been keeping up with industry news, you’ve likely come across headlines regarding a major breakthrough in the quest to create more housing. House Bill 1110, also known as the “Middle Housing” bill, was passed with the goal of creating more middle housing (i.e. smaller multi-family units such as duplexes, triplexes, and townhomes). The bill was passed in 2023 but cities will have until July of this year to comply.
Essentially, House Bill 1110 encourages the development of middle housing on single-family lots that have previously been solely zoned for a single-family residence, creating the opportunity to build more multi-family units to house more of the state’s population. As covered in Realogics Sotheby’s International Realty’s (RSIR) recent blog, the bill will affect over 1.2 million sites in the state. Meaning, “Over ten years, assuming just 20% of this land is redeveloped with an average unit size of 1,200 sq. ft. and a conservative valuation of $600 per sq. ft., this equates to $756 billion in new housing development potential.” Developers hoping to get their project off the ground now have a whole avenue to achieve their goals. High-population cities like Seattle are considered “tier 1,” and are required to allow four units per lot or six if the lot is within a quarter of a mile of public transportation or if two of the units will be considered affordable housing.
As the state makes advancements, so does technology, and RSIR has partnered with Realtie to meet the new demands that the bill will bring within the industry. Realtie is a company founded by RSIR’s Executive Director of Land Division Tadashi Shiga and Founder of Real Wave Ofer Avnery. The startup developed AI software that identifies development potential throughout the state, meaning that with House Bill 1110 now creating the opportunity for redevelopment in many areas previously solely zoned for a single-family residence, Realtie will be able to not only find these new development windows but also offer everything from a virtual architect for lots, valuations, land residual analysis, and more.
AI solutions are changing the way we operate, not just in the real estate industry but in nearly every facet of life. Shiga and Avnery have identified the ways in which it can be utilized to provide a platform for developers to optimize their process from the very first step to the completion of their project. A more streamlined approach means less wasted time and resources, as well as fewer hold-ups that often cause projects to come to a pause or even a complete stop. Matthew Gardner, a local economist with Gardner Economics, touched on the strategic nature of the RSIR and Realtie partnership amidst the changing landscape in this new House Bill 1110 era. “This is a crucial policy initiative that will add some oil to the housing engine and generate more inventory at price points that have been remarkably elusive,” said Gardner.
If you’re curious about how these advancements will affect your personal real estate journey, whether you’re looking to purchase, sell your home, or make a savvy investment, reach out to me today. We can chart the best path forward with the latest news and market analysis.