​How Land Limits Make Washington’s Housing Crisis Worse

​How Land Limits Make Washington’s Housing Crisis Worse

Washington State is facing a serious housing affordability crisis. A recent study from the Building Industry Association of Washington shows that despite builders responding to growing demand, strict land-use rules make homes expensive and difficult to find. Let’s explore how these rules work and why they make housing less affordable.

Rising Costs and Limited Land

When the Growth Management Act (GMA) was passed in 1990, it required that urban growth happen within designated Urban Growth Areas (UGAs). This rule was intended to protect open spaces and guide development wisely. However, it also restricts where new homes can be built. Today only a small fraction of Washington’s land is available for homes, even though builders are building more homes per person than 35 years ago
These limits increase land prices, especially near cities where jobs are. As land grows costlier, the price of building homes increases. The state now needs well over a million new homes in the next 20 years, yet about 80 percent of households cannot afford a median-priced home

How Policies Add Costs

Over the years, home values in Washington have grown much faster than incomes. In 1990, the median home prices were under 300 percent of the median income. Now they are about 646 percent—more than double that share part of the problem is that land-use regulations make it harder to build. Permitting delays, fees, and zoning rules that ban multi‑unit housing in many neighborhoods add thousands to the cost of building a home

What Lawmakers Could Do

Experts and the Building Industry Association suggest easing restrictions on Urban Growth Areas and creating more moderate density‑ zoning. Allowing duplexes, triplexes, fourplexes, and other types of “missing middle” housing in more neighborhoods could open up more options and lower prices.

For example, expanding UGAs by just a few percent in fast-growing‑ counties could create room for thousands of homes. Simplifying permits and reducing fees would also help builders respond more quickly to housing demand

Washington’s housing crisis is not only about demand. Well-intended land rules and zoning restrictions have created a narrow supply of buildable land and increased costs. Reforming these rules and allowing more housing options—in well-planned ways—could make housing more affordable and available. You can explore the full report and obtain all the details of the HERE.