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Housing Affordability in King County

This report highlights the housing affordability crisis in King County and explores potential solutions such as density done right, transit-oriented development, and regional responses to affordable housing needs. It also discusses the importance of government intervention and collaboration between different sectors.

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Housing Affordability in King County

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  1. Housing Affordability in King County August 9th, 2019 Seattle-King County Area Agency on Aging Advisory Council Meeting

  2. HDC’s Purpose • HDC exists solely to serve as an advocate, broker and convener of and for our 180 member organizations and businesses. • Since its inception 31 years ago, HDC and our members have known that it takes a unique set of personal and professional skills to increase the effectiveness, visibility, and impact of the affordable housing sector. • Mission: Through education, advocacy and leadership, HDC supports and inspires its members as they work collaboratively to meet the housing needs of limited-income people throughout King County.

  3. The region has grown by a Seattle Since 2000 the region has grown by 700,000 people, or the equivalent of a city the size of Seattle

  4. Strong job growth has led to a surge in the demand for housing Annual Jobs & Housing Growth Source: OFM

  5. Loss in affordable homes has continued over the last 10 years as units affordable to households at or below 80% AMI have declined by 93k even as total rental stock has grown Unit of measure Unit affordable to households who make certain % of AMI Supply of Rental Units in King County by AMI Tier1 Thousands of Units >100% 80-100% 50-80% 30-50% <30% Projected change2 408 396 387 381 Increase in units largely driven by new construction 360 359 357 97(24%) 356 350 90(23%) 341 85(22%) 28(8%) 80(21%) 39(11%) 26(7%) 48(13%) 327 18(5%) 57(16%) 80-100% AMI units are the fastest growing category, driven by rising rents for units which were previously affordable to 50-80% AMI and new construction 20(6%) 52(15%) 65(18%) 64(18%) 55(17%) 82(23%) 100(28%) 98(26%) 105(29%) 93k affordable units lost over last 10 years 123(32%) 136(34%) 151(37%) Additions driven by new LIHTC, MHA, and MFTE units and rising rents pushing units which were previously affordable to 30-50% AMI tier into 50-80% AMI tier don’t offset losses from increasing rent 151(44%) 137(39%) 154(43%) 152(47%) 139(39%) 122(34%) 134(35%) 122(34%) 120(31%) A majority of housing stock lost due to rising rents and insufficient new construction 116(29%) 112(28%) 94(27%) 92(27%) 81(23%) 72(20%) 74(23%) 64(18%) Few market rate units left, relatively low amounts of new construction due to need for heavy subsidies 46(13%) 44(11%) 35(9%) 29(7%) 24(6%) 28(8%) 28(8%) 28(8%) 27(8%) 27(8%) 27(7%) 26(8%) 25(7%) 24(6%) 24(6%) 23(6%) ^ Greatest Need! 2009 10 11 12 13 14 15 16 17 182 20192 1 Includes those units affordable at the high end of the range and unaffordable at the low end of the range 2 Projection based on 2013-17 CAGR 3 Assumed that >100% AMI rental stock will grow at same rate as households in that income category SOURCE: American Community Survey (ACS); Team Analysis SOURCE: American Community Survey

  6. Lower housing costs require greater government intervention Above 125% AMI Market Rent and Home Ownership 50-80% AMI Rental: Government incentives needed in some markets Home ownership: Subsidy or incentives needed in many markets 80-125% AMI Rental or Home Ownership: Permissive zoning or zoning flexibility needed in some markets 0-30% AMI Rental: Government support needed in all markets 30-50% AMI Rental: Gov’t support needed in many markets 30-50% AMI $48,000 max 50-80% AMI $76,800 max >125% AMI More than $120,000 <30% AMI $28,800 max 80-125% AMI $120,000 max Sources: HUD, 2017; US Census Bureau, ACS 2015; CAI, 2017 Courtesy Community Attributes, King County Housing Affordability Task Force

  7. Connecting Sectors: “Housing and…”

  8. Density Done Right: Density done well means that we accommodate more people and homes in the space that we have, while at the same time improving livability. • Key Aspects of Density Done Right • Solutions that are community led • Transit Oriented Development investments making more livable communities • Promoting Employment Growth at Station Areas in Transit Corridors • Tangible policies that combat displacement

  9. Next steps: • Increase funding for production and preservation of Affordable Housing HB1406 • Diversify the local housing stock • Advocate for long-range plans that recognize population growth will continue • Encourage regional responses to affordable housing need Photo source: Alex Garland, CHH Photo courtesy of Sightline Institute

  10. Inter-local agreements widen each city’s impact • Current Priorities: • Adoption of HB 1406 • Adoption of HB1923 • Collectively pooling resources • Anti-displacement • Equitable Development • Supporting collaboration between Faith-Based organizations and non-profit developers

  11. Questions? Thank you! Mallory Van Abbema Policy & Advocacy Manager mallory@housingconsortium.org

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