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Seattle ends traditional Single-Family Zoning — But don’t expect a building boom just yet

June 29th, 2025 10:57 AM by Sam Kader MLO130505

Starting this week, Seattle is officially phasing out traditional single-family zoning. Thanks to a new state law (House Bill 1110), developers can now build up to four homes per lot in most residential neighborhoods—and up to six homes in areas near transit or when affordable housing is included.

This move is part of Washington’s broader effort to combat the housing shortage by promoting “middle housing,” such as duplexes, triplexes, townhomes, and cottage clusters. It’s a significant step toward making housing more accessible and increasing density in neighborhoods once limited to a single detached home per lot.

But despite the promise, a development surge isn’t expected immediately. Builders still face major challenges:

  • High construction costs
  • Elevated interest rates
  • Weakened buyer demand
  • Regulatory and permitting hurdles

Many developers are taking a cautious approach, delaying projects until the market stabilizes. While more parcels are now eligible for infill housing, current conditions mean we’re unlikely to see rapid transformation in most neighborhoods.

Still, some builders are moving forward with offers on single-home lots, planning four-unit townhomes or cottage-style developments. Areas like Ballard, Capitol Hill, Greenwood, and Wedgwood are expected to see the most early activity.

Ultimately, this zoning reform lays the groundwork for more diverse housing options, especially for middle-income buyers. However, meaningful change will likely come slowly over the next decade—depending on how the market, policy, and consumer demand evolve.

What This Means for Buyers, Builders, and Agents

If you're a homebuyer looking to invest in one of Seattle’s newly upzoned neighborhoods—or a builder planning your next infill project—now is the time to partner with a trusted mortgage professional who understands the local lending landscape and zoning changes. And if you're a real estate agent helping clients navigate this evolving market, let’s work together to provide financing solutions that match today’s opportunities.

Contact us today to discuss pre-approvals, land financing, or construction loan options tailored to Seattle’s changing housing market. 

Posted by Sam Kader MLO130505 on June 29th, 2025 10:57 AM

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