Entry is free on Nov. 11 at Mt. Rainier and other national parks on this special day. Since Veterans Day falls on a Saturday this year, you can expect far more people and far less available parking.
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Zoning laws in the U.S. are a bit like that one quirky relative at family gatherings – they have their benefits, they have their drawbacks, and sometimes, they just leave you scratching your head in bewilderment.
The benefits of zoning are innumerable. Suburban residents can be almost assured of the peaceful enjoyment of their home without worrying about a neighbor constructing a rollercoaster or baseball stadium next door. This helps to maintain consistent property values without the highs and lows of that amusement park ride next door.
The laws also play a role in community planning. Zoning helps cities and towns allocate space for essential services like schools, parks and hospitals. Without zoning, your kid’s school might be next to a toxic-waste dump or the nearest park may be an hour’s drive away.
For the most part, we can celebrate the standards established by state and local governments as they evolve into the second century. The first successful zoning laws were established in 1916 to determine building heights in New York City, soon followed by the zoning of residential and business districts. The effort was led by lawyer Edward Bassett, who went on to develop freeways and parkways.
Also thank Herbert Hoover, as Secretary of Commerce, for promoting the model laws to authorize local zoning and comprehensive planning that led to widespread adoption across the country. In the 1920s, about a century ago, Hoover directed the drafting of the first zoning laws for municipalities to use as guideposts. By 1927, a year after the Supreme Court upheld zoning to protect the health and safety of people, more than half of the states had adopted some form of Hoover’s ideals. (Hoover’s Commerce Department was also the first to track housing data.)
The laws can be a double-edged sword. Hoover surely did not anticipate the loopholes and redefining of the law through the decades – not to mention the whopping 30,000 zoning districts in the U.S. While zoning is applauded by most, people also must know that it is a vehicle for perpetuating segregation through exclusionary land use laws and threatening the supply of affordable housing. This, in turn, can lead to shortcomings on many levels – equitability, economic and environmental to name a few.
Zoning also helped lead to the coining of the phrase “McMansion,” a suburban epidemic of oversized, cookie-cutter homes that often look like family sized storage boxes with playground sets or pools in the backyard. Creativity and individuality were often tossed aside by these mass-built developments.
Scholars have called zoning laws a “straitjacket” on housing growth, an impediment to improving our personal and public economic health. Constraints on housing creation, especially among so-called starter homes, arguably limit the number of workers who can access high-producing jobs.
Economists believe that instead of increasing local employment and providing housing, strictly zoned cities push up home prices and curtail opportunities for many. Fortunately, state and local governments are seeing the errors of their ways and moving toward a more flexible zoning concept to help address our housing shortage, particularly when it comes to affordability when living near public transit.
The City of Seattle, for example, has renamed its single-family zoned areas to “neighborhood residential.” That simple act has allowed for more accessory dwelling units as well as four- and six-plex structures on land that was once zoned for one detached house. It has also helped, in many cases, to eliminate off-street parking and owner-occupancy requirements in parts of our region.
Like that quirky relative, zoning laws can be both endearing and exasperating. They are an imperfect solution to the complex challenge of balancing individual property rights with the collective well-being of a community.
We can be hopeful that local governments are addressing the inequalities of the past and attempting to welcome a broader spectrum of residences that will further enrich our cities and towns – not to mention our souls.
AFFORDABLE HOUSING INITIATIVES
The Seattle City Council passed two bills that take significant steps to remove red tape and help push for more affordable housing developments. The first makes permanent a pandemic-related policy that exempts affordable housing from the design review process.
The permanent exemption will apply to rental developments where at least 40% of homes are affordable to people making 60% of our area’s median income ($57,550 for a single person or $65,750 for a couple). It will also apply to for-sale housing projects where at least 40% of the homes are affordable to people making 80% of the area median income ($70,650 for an individual and $80,750 for a two-person household).
The city expects about eight projects to qualify for the exemption each year, with a total of about 725 units of new housing.
Seattle will also temporarily offer the same exemption to certain projects through the city’s Mandatory Housing Affordability program. MHA requires developers building market-rate apartments, townhomes and other developments to either include affordable units on-site or pay fees. Those fees are used to fund affordable housing in the city.
Meantime, Seattle voters will decide this November whether to extend for another seven years a property levy to finance low-income housing and provide accommodation for other lower-income people. Proposition 1 would tax property owners approximately 45 cents per $1,000 of assessed value. Seniors, veterans with disabilities and some others would be exempt from paying the tax.
The levy, if approved by voters on Nov. 7, would raise some $970M and could create about 3100 new affordable homes throughout Seattle. In addition, it will fund the preservation of 635 affordable rental units. It would cost the owner of an $800,000 home in Seattle about $360 in 2024, or more than triple the expiring housing levy of $115.
The King County Council estimates Seattle will need roughly 112,000 additional homes over the next 20 years, including 44,000 for people making less than 30% of the region’s median income. Bellevue has the second-greatest need, according to council forecasts, with a shortfall of 35,000 to make up by 2024. Redmond (20,000) and Renton (17,000) are next.
BY THE NUMBERS
>> Eighty-five percent of people who prepared a wedding registry said they would have preferred to receive money towards a down payment or other home-buying costs. Realtor.com and Censuswide said 82% of the 2291 respondents said they felt obligated to list traditional items – such as furnishings – and 88% reported they registered gifts they really did not want.
>> A typical single-family home is 2191 sq. ft., according to research compiled by the Census Bureau and National Association of Home Builders. That median figure is the smallest measure for a home since 2010 and marks a reversal after a brief increase during the post-Covid building boom.
>> One-third of all homes in the Seattle area are worth $1M+, as of June, according to Axios. That’s down from 39% a year ago. In addition, 7% of all homes sold in King County this year have had a price tag of $2M+.The typical home in the U.S. today sells for $430K.
>> Seattle remains a top destination for technology talent, according to a report from global real estate services firm CBRE. Our city has a 15% in-migration rate for tech grads of up to 3 years experience; that’s No. 1 in the nation in front of Austin, Texas, at 9.7%. Across all experience levels, Seattle was second (12%) behind Austin (15%).
>> A full 19,396 apartment units are under construction in Seattle metro, according to a Q2 report from Berkadia, a U.S. commercial lender and sales broker. Another 26,028 units are in the planning stages and have received approval from permit offices and zoning authorities. A report by RentCafe claims Seattle metro added 36,952 units to the rental market between 2020 and 2022.
>> The rate of homelessness in the U.S. rose 11% this year, according to The Wall Street Journal (paywall), as housing costs and evictions triggered people to lose their homes despite record funding to combat the issue. King County acknowledged receiving a little under $1B in federal aid for homelessness and housing since 2019, yet the local homeless rate rose 14% this past year.
OCTOBER HOUSING UPDATE
Autumn marks a change – shorter days, cooler temperatures, falling leaves … and falling home prices. This is the season when buyers can take advantage of homeowners wishing to sell before the holidays and who show a willingness to budge on price or make other concessions.
We are starting to see all those signs following the release of September housing data from the Northwest Multiple Listing Service (MLS). Unfortunately for buyers, a combination of the typical seasonal trend and higher borrowing costs has shifted housing market activity to an excruciatingly slow pace – and there are concerning signs ahead.
First a look at September’s numbers: A wave of last-chance listings for the year hit the market after Labor Day. That increased new listings by 7.5% (2884 units) and available homes on the market by 12% (3602) from Sept. 1 to Oct. 1 on all home types in King County. Seattle alone saw a 29% (1213) monthly increase in new listings.
Even with the increasing numbers, the total available homes for sale in King are the fewest for any September since at least 1993 when records were first archived online.
Read a detailed assessment of our housing market in my most recent blog post: King County Home Sales Cool as Interest Rates Inch Toward 8%
CONDO NEWS
A survey found that 73% of people who manage condos, homeowners’ associations and co-ops are planning to increase the fees they charge residents to address rising prices. A full 91% surveyed noted their associations have faced surprise expenses in the past year.
The biggest areas where these costs have risen are building management fees (92% of survey respondents), insurance (91%) and maintenance (85%). But raising fees isn’t the only solution people are thinking about. Some are planning to cut costs (41%), defer maintenance work (40%) or reduce how much they spend on landscaping (31%). (Deferred maintenance was believed to be one of the causes of the tragic Florida condo collapse in 2021.)
People are also looking into other options like renegotiating contracts, deciding which projects are most important, making their buildings more energy-efficient, and using money they’ve saved up just for emergencies. Some associations are planning to obtain a loan to cover the rising costs.
This survey was conducted in early 2023 by the Foundation for Community Association Research, which helps us understand what’s going on in these communities. There are about 358,000 of these communities in the U.S., and they’re home to more than 74M people.
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Queen Anne has a new neighbor that blends elements of the past with modern design. The Fitzgerald is a 5-story, 13-unit boutique condo that opened this summer and is already turning heads for its thoughtful design.
Sales information describes the effort as New Traditional and it is delivered through elegant lighting and high-end appliances. What stands out to this observer is the warm color that exudes through the home, everything from oak cabinetry to the countertops and tile that feature veins of brown.
For those who have lived in New York City, you might think this standout structure should be located on the Upper West Side. The exterior follows the same uncomplicated lines, loft-style windows and balconies that adorn only the best pre-World War II classic apartment buildings back East.
Located on the top of the hill at 3rd Avenue West, The Fitzgerald (pictured) offers spacious, 1- and 2-bedroom homes plus a den with more than 1150 total sq. ft. Prices so far are listed from the high $900,000s at a rate of about $1000/sq. ft. and homes come with garage parking and A/C. Contact me to learn more or to schedule a visit.
LUXURY LIVING
We start with a Queen Anne classic and its unparalleled views. This 5-bedroom, 7.25-bath, 9970 sq. ft. mansion delivers delight in every way. Perched atop our city’s highest peak, this 1902-built standout provides never-ending views of the Space Needle, Elliott Bay and Cascades – so picturesque that the 1990 Goodwill Games in Seattle captured the vista from the home’s third floor to create a canvas backdrop shown on the broadcast. A witness to more than a century of history in Seattle, the home includes nine fireplaces, 21 Italian chandeliers, an eight-seat theater, three kitchens(!) and a laundry on each of the three floors. The original stained-glass windows and Corinthian columns are the icing on the cake. The home, which has only had three owners, has been on and off the market since May 2019 when it was first listed at $11M. Now you can get it for a “steal” at $7.3M ($732/sq. ft.).
Looking for a water view in a contemporary setting? Check out this fully updated mid-century modern West of Market home in Kirkland. This 3-bed, 2.5-bath, 2800 sq. ft. home offers windows that usher in splashes of light from everywhere you stand. Vaulted ceilings with skylights, French doors and an electric charging station help blend the charm of old with the needs of today. List: $3.175M ($1134/sq. ft.), recently reduced from $3.249M.
Straddling Seattle’s Denny Blaine-Washington Park boundary, this 5-bed, 4.25-bath, 5546 sq. ft. is an architectural masterpiece nestled among trees on three parcels of land – a true accomplishment that curates color and contemporary styling. Every room has its own palette and personality. Known as 505 Art Häus, the 2006-built, 2-story with basement is a museum piece within an oasis. Solid wood flooring, lighted glass walkways, one-of-a-kind light fixtures, Corian countertops and radiant heat on all levels tell you this is not just any ordinary luxury home. My goodness! List: $5.5M ($992/sq. ft.).
Let’s cap this month’s exploration with a road trip to the San Juans. Check out this 3-bed, 4-bath, 6327 sq. ft., 1-story estate on 8+ acres in Friday Harbor. Resting atop a rocky ledge, this stunner includes refined interior touches but it’s what is outside that captures your attention: spacious front and back areas with enormous terrace views and 136 ft. of west-facing waterfront within a sheltered cove. The home is reportedly being sold by a retired exec from Visa International. List: $6.995M ($1106/sq. ft.), just marked down from $7.5M.
What else is happening in and around your Seattle?
Pumpkins and Much More, through Oct. 31
Enjoy the season with pumpkin patches, hayrides, corn mazes, apple cider and more for Halloween. Here is a selection of events and locations: Snohomish County, Eastside, Greater Puget Sound, as well as a day of pumpkins and animals during Pumpkin Bash at Woodland Park Zoo (5500 Phinney Ave. N., Seattle) on Oct. 28-29, 9:30am-3pm
Release the Kraken, starting Oct. 17
The National Hockey League is back for another year of high speed, high tension and high expectations for the Seattle Kraken. The franchise set a league record by adding 40 points in the regular-season standings from their inaugural season to their second campaign. Can they continue on the path of success and Stanley Cups? The home opener at Climate Pledge Arena (334 1st Ave. N.) is on Tuesday (7pm) against the Colorado Avalanche and continues with memorable regular-season matches against Vegas at T-Mobile Park on New Year’s Day and a Presidents’ Day arena matinee against Detroit. Various times. Tickets
Home Show, Oct. 20-22
The Evergreen Home Show promises 200 booths of “specialized local businesses ready to help you customize, update, or even design the home you have always wanted” at Evergreen State Fairgrounds (14405 179th Ave. SE, Monroe). Friday, 12-6pm; Saturday, 10am-6pm; Sunday, 10am-5pm.
Pancake Breakfast, Nov. 5 and Dec. 3
The Swedish Cultural Club (1920 Dexter Ave. N.) opens its doors to the public every first Sunday of the month for a delicious – and filling – pancake breakfast. Servings include three Swedish pancakes with your choice of lingonberries or strawberries, along with two pieces of ham, juice or milk, and coffee. (Whipped cream, powdered sugar, butter and syrup are available.) All for $14.33! Kids pay $12.13. 8am-1pm.
Lights at the Zoo, Nov. 10-Jan. 14, 2024
WildLanterns is back! The popular event features “large-scale animal and nature scape lanterns representing wild places from around the globe.” The outdoor fun takes place at Woodland Park Zoo (5500 Phinney Ave. N.) 4-8:30pm. Last entry: 7pm. (Closed Nov. 23, Dec. 24, 25 and most Mondays.)
Lights of India, Nov. 11
Celebrate the victory of light over darkness, good over evil, and knowledge over ignorance at Diwali: Lights of India. The event features classical and folk dances, henna and face painting, Indian food, an art gallery and craft-making at Seattle Center Armory (305 Harrison St.). Free. 12-6pm.
Veterans Day, Nov. 11
First known as Armistice Day, Nov. 11 was chosen as a day of memorial to mark the end of fighting in World War I – on the 11th hour of the 11th day of the 11th month in 1918. We continue to remember those who paid the ultimate price so we can enjoy the freedoms of today. Bellevue will hold a solemn event at Sunset Hills Memorial Park (1215 145th Place SE) at 11am, and Auburn will mark the day with an observance (9:45am at 411 E St. SE), parade (11am at E Main St., from E St. to A St.), marching band competition (1-10pm, 801 Fourth St. NE) and other activities.
Free National Park Day, Nov. 11
Entry is free at Mt. Rainier and Olympic national parks on this special day. Since Veterans Day falls on a Saturday this year, you can expect far more people and far less available parking. (Did you see those amazing colors on Paradise at Mt. Rainier atop the newsletter? Wow!)
Events are subject to change. Please check with venues to confirm times and health-safety recommendations.
In case you missed it….
My Living the Dream blog has been educating readers for five years now. At least one story is published every week. The blog has recently focused on helping home buyers. Here are three of the latest examples of how we work to educate you:
- Mortgage Insights: Intricacies of the Buydown
- How to Check for Flood Risk During Home Buying
- Covenant Homeownership Program of Washington
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