Washington State, October 2, 2025
News Summary
Washington state has reported a significant drop in residential construction permits, returning to levels not seen since 2013. About 33,000 permits were issued last year, contrasting with previous peaks before the pandemic. Industry leaders are concerned about various factors such as policy changes, rising costs, and lengthy permit timelines contributing to the decline. Local efforts are being made to streamline the permitting process, particularly for Accessory Dwelling Units, in an attempt to boost housing supply amid escalating prices and demand.
Washington State Sees Sharp Decline in Residential Construction Permits, Returning to 2013 Levels
The number of residential construction permits issued in Washington state has sharply decreased, returning to levels not seen since 2013, according to a report by the state Economic and Revenue Forecast Council (ERFC). In 2013, approximately 33,000 residential housing permits were issued. This figure increased to around 46,000 permits by 2017, reflecting a growing demand for housing.
However, the impact of the COVID-19 pandemic caused a downward shift. State-imposed lockdowns classified construction as a nonessential business, leading to a decline from 48,000 permits in 2019 to 44,000 in 2020. The situation temporarily improved in 2021 when the number of permits soared to about 52,000, but the optimism was short-lived as numbers have again declined in subsequent years.
The ERFC predicts a potential increase in housing permits over the next few years, yet they are still expected to remain below the levels experienced during 2021-2022. This ongoing trend has raised several alarms among community leaders and industry experts.
Shocking Decline and Future of Housing
Jan Himebaugh, the Vice President of External Affairs at the Building Industry Association of Washington (BIAW), expressed disbelief at the significant drop in permits and warned that if the building process does not become easier, many builders may cease their pursuit of constructing new homes in the state. Various policy changes are believed to contribute to this decline.
For instance, the recent revisions to the State Energy Code are now requiring the installation of heat pumps, adding additional complications and costs to construction projects. Furthermore, Initiative 2066, which aims to protect the use of natural gas from government bans, has created an even more challenging environment for builders to navigate.
Compounding the issue are buffer zones around wetland areas that restrict the availability of land for development, making it difficult to meet the growing demands for housing. Jennifer Anderson, the Director of Government Affairs for the Master Builders Association of King and Snohomish Counties, noted that uncertainty surrounding permit timelines and escalating costs further deters builders from pursuing new projects.
Housing Affordability Crisis
As of the second quarter of the year, the median sales price for a single-family home in Washington rose to $675,600, marking a staggering 133.5% increase from a decade ago when it was $289,300. This affordability crisis is alarming, as approximately 80% of families in Washington state now find homes beyond their financial reach.
In July, King, Snohomish, and Pierce counties issued 3,742 single-family permits, which is a 7% decline from July 2024. Despite the passage of House Bill 1110 in 2024, which aimed at increasing middle housing, multifamily permits also saw a significant drop of 37% compared to July of the previous year.
Local policies, such as Seattle’s mandatory housing affordability fees applied to townhomes, have also contributed to the decline in permits and the rising costs associated with home construction. Data shows that from 2019 to 2024, the permits for new townhomes in Seattle fell by approximately 87%, leading to an estimated loss of $775 million in construction-related tax revenue over the next twenty years.
Call to Action on Housing Supply
Building advocates emphasize the urgent need to boost the housing supply to positively impact the housing market. The Federal Way city council is preparing to vote on code changes that aim to improve the permitting process for Accessory Dwelling Units (ADUs), which could facilitate their construction.
The proposed changes would allow for at least two ADUs on all single-family zoned lots, limit impact fees, remove entrance restrictions, permit ADUs in existing structures, and reduce parking requirements near main transit stops. These adjustments are part of the Federal Way Housing Action Plan, which prioritizes encouraging homeowners to build ADUs to expand housing variety and density.
ADUs can provide accessible housing options, particularly beneficial for intergenerational households as well as individuals with disabilities, simultaneously increasing income potential for homeowners on fixed incomes. However, data from 2023 illustrates that permit applications for ADUs in Federal Way have been remarkably low, with only 13 applications submitted and just two permits issued so far.
As communities express diverse opinions on new developments, some residents in Boise are voicing concerns regarding the Hawkins Cos. planned five-story apartment complex on Federal Way. Local residents believe it may negatively affect the character of the neighborhood and lead to increased traffic.
Frequently Asked Questions
What is the current trend in residential construction permits in Washington state?
The number of residential construction permits issued in Washington state has decreased to levels seen in 2013, with approximately 33,000 permits issued.
How has COVID-19 affected construction permits?
The COVID-19 pandemic led to state-imposed lockdowns, categorizing construction as nonessential; permits fell from 48,000 in 2019 to 44,000 in 2020.
What is the current median sales price for a single-family home in Washington state?
The median sales price for a single-family home in Washington rose to $675,600 in the second quarter of the fiscal year, marking a 133.5% increase from a decade prior.
How affordable are homes in Washington state?
Approximately 80% of families in Washington state cannot afford a home.
Deeper Dive: News & Info About This Topic
Additional Resources
- The Center Square: Washington State Sees Sharp Decline in Residential Construction Permits
- Federal Way Mirror: Backyard Cottages and More Could Soon Be Easier to Build in Federal Way
- Idaho Statesman: Latest Business News
- BoiseDev: Wastewater Pipe Building Updates
- NBC Right Now: House Bill 1403 Could Bring More Condo Construction Across Washington
- Wikipedia: Construction
- Google Search: Washington housing market
- Google Scholar: Residential construction permits Washington
- Encyclopedia Britannica: Housing Construction
- Google News: Construction permits Washington
Author: Construction TX News
TEXAS STAFF WRITER The TEXAS STAFF WRITER represents the experienced team at constructiontxnews.com, your go-to source for actionable local news and information in Texas and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Texas Construction Expo, major infrastructure unveilings, and advancements in construction technology showcases. Our coverage extends to key organizations like the Associated General Contractors of Texas and the Texas Building Branch, plus leading businesses in construction and real estate that power the local economy such as Austin Commercial and CMiC Global. As part of the broader network, including constructioncanews.com, constructionnynews.com, and constructionflnews.com, we provide comprehensive, credible insights into the dynamic construction landscape across multiple states.
