Seattle is different than other cities in many ways. For one, we tend to live alone – a full 156,000 of us city dwellers have no roommates or live-in partners unless you count your pet (we do love our pets!). The figure is a 20% jump from 2019 and represents 43% of all city households, the sixth-highest total in the nation. It also comes as King County recently experienced its first population decline since the 1970s of people under the age of 18.
This may beg the question: Are Americans – and Seattleites in particular – living a more isolated life? Granted, it’s not exactly a happy question to ponder this Valentine’s week.
U.S. Census research from a decade ago that covers all the way back to pre-Civil War strongly suggests the answer is “Yes.” Unlike a century-plus – or even decades – ago, today’s residents in many cases prefer to live alone, especially in urban areas.
Thanks in large part to the powerful influence of Seattle-based Amazon and the businesses that support the commerce and computer storage colossus, we have helped to create a city of solo dwellers. Why? Many can apparently afford to live on their own; people in Seattle with a college degree earn a median income of $116,000, according to Census data from 2022. Also, we enjoy our solitude with the option to mingle at the gym, outdoors with nature, or simply socialize when we want.
Whether this is a healthy existence is another story. In fact, the U.S. Surgeon General released a report called Our Epidemic of Loneliness and Isolation. To address the issue, Dr. Vivek Murthy developed six pillars that spotlight a need for social connectedness.
It reminds me of the positive impact cohousing has on its members. Cohousing is an affordable option that flourishes from an intentional, socially active living environment for its residents. While most own their homes like traditional residential life, cohousing members also follow a participatory way of being. That can include looking after one another as well as holding social gatherings – meals, games, parties and TV watching in a large community setting – and many seniors are adopting cohousing as a lifestyle choice.
A group of students from SuitUp was asked to express their wishes for more community-oriented housing. One of their suggestions was to create a neighborhood of affordable tiny homes with a range of shared facilities. Residences would include kitchenettes, with larger shared kitchens nearby that would encourage neighbors to cook and eat together while keeping costs lower.
The young students might be onto something, particularly for the 76M Baby Boomers in the U.S. who may be facing greater isolation as they age. Smart kids!
In the evolving landscape of urban existence, embracing community-oriented living options like cohousing and affordable tiny homes could be the key to fostering connections. This is especially true as we navigate the challenges of isolation and seek meaningful social bonds in our rapidly changing world.
SPOTTING TRENDS
Builders are hearing from prospective buyers: Please create stylish and functional homes with little compromise on size and at lower prices.
Designers are helping builders broaden options to create homes that consumers can afford – no easy task. Here are a few trends, according to John Burns Research and Consulting, that started in 2023 and will continue this year:
- Designers are starting to remove entire parts of the home, like the formal dining room, basement and garage to free up more space for the bedroom, kitchen or study.
- Builders are partnering with mortgage lenders to deliver lower interest rates, either through temporary or permanent rate-busting promotions.
- Instead of focusing on multigenerational opportunities, more builders are offering the option to create a rental suite or accessory dwelling unit as part of a new home, assuming that some will rent out the space for additional income.
THE YEAR OF HOUSING 2.0
State lawmakers made huge strides last year to help improve the chances of more homes being developed – and affordable ones at that. We have covered this legislative fervor in a previous newsletter in which 23 housing bills became law.
How serious is our housing shortage? The Urban Institute projects the Puget Sound region faces a gap of about 140,000 homes over the next 20 years, even when factoring in the new measures passed in Olympia.
“Our work is not done,” Washington Lt. Gov. Denny Heck told The Urbanist. “The problem is so big, and some of the solutions that were adopted [in 2023] … are going to take quite some time to actually be felt on the ground. It’s not a time to let up.”
The Legislature is back at it – this year meeting for a 60-day session – seeking to build upon (no pun intended) the successes of 2023. Three housing-related topics started this year as a prime focus:
- Lot Splitting – a process that would allow property owners to split part of their lot of land to have a new buildable area of at least 2000 sq. ft. for housing.
- Accessory Dwelling Units – expand permitted use of detached ADUs to include rural portions of the state.
- Transit Oriented Development – redefine TODs to include higher density housing in a wider radius of transit facilities (within a half-mile of rail stations and a quarter-mile of rapid bus stops), require a higher rate of affordable homes in these zones, and permit state funds to support both this type of development and related infrastructure projects.
Sensing this urgency, House lawmakers got to work on Day 1 of the new session and passed a lot-splitting bill, 94-4, that was carried over from last year. We learned this week that the Senate is no longer reviewing the measure. No explanation was immediately available.
The measure to increase the number of ADUs on rural land never made it out of committee. However, a bill passed by Senate lawmakers and now with the House could waive property taxes on ADUs (attached to a single-family home or detached) as a means of incentivizing additional rental housing.
A variation of the TOD legislation is working its way through the Senate after passing the House.
Among other items under discussion:
> The state is weighing proposals to help fund affordable housing efforts that recently came into effect. One option: Raise the excise tax by a percentage point – to 4% – on home sales above $3M never got out of committee. Another option: Appoint the state’s Department of Commerce to provide low-interest loans for eligible organizations to deliver affordable housing to low-income households; it has strong support and is under review by the Senate after passing the House.
> Lawmakers are looking into the idea of co-living housing, which are sleeping units that are independently rented and lockable but whose total occupants would share kitchen facilities. Local governments may also call this congregate living, single-room occupancy or a boarding house. The House approved the legalization of this housing and has sent the measure to the Senate.
At least 27 pieces of housing-related measures passed through one of the House or Senate committees, with 14 of them receiving approval by one of the full chambers so far. The last day of this year’s session is on March 7. Watch this newsletter and my Facebook page for updates.
BY THE NUMBERS
>> Seattle jumped five notches between 2019 and 2022 among big U.S. cities for people living alone, according to the U.S. Census Bureau. Of its 367,000 total households, the Emerald City had 43% single occupants, up from 38%, or 11th place nationally, three years before. Washington, D.C., was No. 1 at 49%, followed by Atlanta (47%). Our city averages 2.1 people per household.
>> Seattle metro ranks third in the nation on a measurement of factors that combine economic conditions, workforce quality and quality of life. The so-called STEMdex from Real Estate Consulting puts our city behind only Austin and Denver in an annual ranking of markets most likely to see the strongest STEM (Science, Tech, Engineering, Math) job growth.
>> The typical home fix-and-flip in the U.S. reaped a net profit of 30% in Q3 of 2023 for owners, according to information released in December by ATTOM Data Solutions, up from 22% in the same quarter of 2022. The smallest home-flipping rates were in Seattle metro – 3.8% of resold properties.
>> King County’s net new housing need is 308,677 units between 2019 and 2044, according to county planning policy experts. The cost of an affordable home in the county is estimated to be $475,404; that compares with the median price for market-rate sales in January of $760,000.
>> Commercial real estate firm Berkadia projects about 21,700 apartment units will come online in 2024 across King and Pierce counties combined. Rental occupancy rates will end this year at 95%, the research firm forecasts.
FEBRUARY HOUSING UPDATE
The Seattle/King County housing market appears to have come through the worst of times with a slightly stronger showing in January than in previous months. The number of newly listed homes more than doubled from December and increased moderately compared with the same time last year, according to data from the Northwest Multiple Listing Service. Total inventory remains low, however, keeping prices higher on an annual basis.
The final months of 2023 were among the quietest periods in recent memory for residential real estate amid a slow year overall. Annual sales across King County totaled 21,515 homes – down an incredible 24% from the year before and the fewest since 2010 (20,761). The market is now in the process of thawing after a lengthy cool down, as buyers begin anew to seek change in their home dynamics.
Read a detailed assessment of our housing market in my most recent blog post: Mostly Positive Start to 2024 Housing Activity in Seattle/King County
The monthly price map (below) shows a wide range of year-on-year price variations across the King County condo market. Year-on-year price changes include a jump as high as 42% in Sammamish ($900,000) to a decline as low as 16% in Maple Valley ($424,950).
CONDO NEWS
The newer condo buildings around Seattle enjoyed a good sales year in 2023 with hundreds of homes changing hands.
Spire led the way with 57 units sold to new buyers, including nine deals in March. Opened in 2021, the 41-story luxury condo on Denny Way – near the former Elephant Car Wash – offers amazing top-floor amenities and the first auto-valet residential parking system in Seattle. Every remaining luxury home for sale either includes parking or has the option to purchase a space in the automated system (see my story on how it works).
KODA came in second across the region (and city) for annual sales with 28; that’s 14% of the building’s 201-unit inventory. Also opened in 2021, the 17-story condo in the Japantown section of the city’s International District features unobstructed rooftop views of Puget Sound to the west, downtown to the north and the stadiums just to the south.
Insignia Towers also sold 28 units this past year but that’s a fraction of the total 698 units in the community. The twin high-rises opened in 2015 and 2016 and sold out quickly. Unlike Spire and KODA, Insignia’s sales typically originate from the first owners.
Each year I summarize sales turnover and owner-occupancy rates for Belltown/downtown Seattle condos. It’s helpful for me and my condo clients to chart the trends and understand which buildings have a high percentage of owners living in the building.
The chart below is my handiwork and unofficial. You’ll notice sales rates were mostly lower for buildings in 2023, thanks to the overall housing market slowdown. I expect sales will pick up this year.
Do you have a question about the local condo market or, perhaps, another condo building? Contact me for more information.
LUXURY LIVING
Jeff Bezos is (indirectly) in the news with a new listing of his former Bellevue home. The 1-story, mid-century abode is on the market for the second time in 4-plus years. It’s a 3-bedroom, 1.75-bathroom, 1540 sq. ft. property on a just-shy, 0.2-acre lot (yes, that’s small!). Bezos was renting the vaulted-ceiling residence in 1994 when he converted the garage into the HQ for his fledgling bookselling business Amazon.com. (The West Bellevue home is close to what would become Bezos’ residence in Medina, and he has/had properties in nearby Hunts Point and Yarrow Point.) List price for this piece of local history: $2.28M ($1481/sq. ft.).
Medina is also home to an 8-bedroom listing that hit the market in January. Built in 2019, the home includes 7.25 baths within its 7650 sq. ft. on 0.6 acres which is a stone’s throw from Lake Washington. The home offers a stately, contemporary design that is warm and inviting. There is a Bezos connection here too: The reported homeowner, Peter Neupert, was recruited by Bezos, a friend and neighbor, to run drugstore.com back in the ‘90s when amazon.com was heavily invested in the online pharmacy. (Neupert would leave the business after about 5 years and join Microsoft for a second stint where he helped to run a new health-solutions group.) List: $10.5M ($1373/sq. ft.)
Staying in this bedroom community, here’s a 3-bed, 1.5-bath, 2700 sq. ft., multi-level home with a fully furnished daylight basement. This charming mid-century residence – with original wood-beam ceilings and wide-open floor plan – sits within close distance of Meydenbauer Bay and Lake Washington. Loads of natural light inside and spacious enclosed yard. Great location. List: $3.58M ($1326/sq. ft.).
What else is happening in and around your Seattle?
Flower Show, through Feb. 18
Spring comes early at the Northwest Flower & Garden Festival. The annual show features more than 20 garden displays and hundreds of sessions to experience and learn about flora and fauna. Catch the fun at the Seattle Convention Center (705 Pike St.). Tickets. Thurs.-Sat., 9am-8pm; Sun., 9am-6pm.
Complimentary Healthcare, Feb. 15-18
Seattle/King County Clinic offers dental, vision and medical care to anyone for no charge. Tickets will be limited and available from 5:30am in Fisher Pavilion (near the corner of Lenny Wilkens Wy. and 2nd Ave. N.). No ID is required. Free parking is available in Mercer Street Garage (650 3rd Ave. N.).
Recreational Vehicle Show, Feb. 15-18
Special vehicles and accessories will be showcased at the Seattle RV Show. Come for the RVs, seminars, as well as adult beverages at Lumen Field Event Center (800 Occidental Ave. S.). Free admittance for children. Thurs.-Fri., 11am-6pm; Sat., 10am-7pm; Sun., 10am-5pm.
Free Classical Music, Feb. 21
Seattle Symphony performs with young musicians during Side-by-Side with the Seattle Youth Symphony Orchestra at Benaroya Hall (200 University St.) It’s free but seat reservations are recommended. 7:30pm.
Asian American Film Festival, Feb. 22-25
Seattle Asian American Film Festival features artists who create innovative media. Meet filmmakers and attend Q&A sessions after screenings at Broadway Performance Hall (1625 Broadway Ave.) and Northwest Film Forum (1515 12th Ave.). Can’t make it to the festival? Then bring the festival to you with virtual showings, Feb. 26-Mar. 3.
Home Show, Feb. 22-25
Seattle Home & Garden Show has exhibits about building, remodeling, decorating and landscaping homes. See for yourself at Lumen Field Event Center (800 Occidental Ave. S.) 10am-6pm every day.
Comicon, Feb. 29-Mar. 3
It’s that time again! Emerald City Comic Con returns for another moment of comics, anime, gaming, entertainment and pop culture, where attendees come as they wish. The costumes worn often act as a great show on its own. Actors Chris Evans and Christina Ricci will be among the guests attending. Washington State Convention Center (705 Pike St.). Tickets.
Seattle Sounders home opener, Mar. 3
One of the first signs of spring is the start of the Major League Soccer season. The Sounders kick off their 34-match campaign on Feb. 24 at LA FC, the team that knocked Seattle out of last season’s playoffs. That’s followed by the home opener on Mar. 3 at Lumen Field (800 Occidental Ave. S.) against Austin FC. Messi and his Miami FC squad do not face the Sounders this year. Tickets.
Wearin’ the Green, Mar. 15-17
For most of us, we may have lost the meaning behind St. Patrick and his bringing of Christianity to Ireland. Now it is a day to celebrate Irish culture with festivities beyond simply wearing green on the 17th. This year is no different. Mark the occasion on the 15th with the landing of St. Patrick by boat on South Lake Union at 5pm and the laying of the green stripe at the beginning of the parade route at Jefferson St. and 4th Ave. in downtown Seattle. 7pm. On the 16th, the parade will run along 4th Ave. downtown and feature Irish bands, pipers, dancers and more. 12pm. The Eastside celebrates St. Patrick on the same day at the Kirkland Performance Center (350 Kirkland Ave.). 7pm. And, everyone becomes Irish on the 16th and 17th at Seattle Center Armory (305 Harrison St.), showcasing music and dance performances, films, children’s activities and plenty of food. ~12pm both days.
Events are subject to change. Please check with venues to confirm times and health-safety recommendations.
In case you missed it….
Living the Dream, my blog, continues to showcase helpful content week in and week out.
I have researched, written and recently published insightful stories on new state initiatives aimed at improving housing equity and the importance for buyers to have a home inspected before closing the sale.
Lastly, I made the case as to why owning a home is better than renting – even in pricey King County. I have the numbers to back it up!
A final note: Thank you to all of you for reading this newsletter – a labor of love for me. I have been amazed by the uptick in subscribers – closing in on 600 after hitting the 500 mark in October. Consider asking your friends and colleagues to sign up here.
Thanks!