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Breaking news and resources from across the industry.

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  • Sticker Shock: Why Is Housing So Expensive?

    by User Not Found | Sep 21, 2022

    By MBAKS Content Strategist James Slone

    What’s driving up home prices? Supply and Demand.

    Young couple shocked looking at expensive bill

    Pointing out how expensive housing is has become its own genre. How many articles do we really need on hot, hot, hot housing markets? Is there any end in sight for breathless reports on the monthly numbers? Probably not, because even with recent interest rate hikes and some cooling off locally, national home prices are still sky-high.

    According to Axios, in 2022, the national median price for existing homes rose above $400,000 for the first time in history. And that’s on the low side for the Puget Sound region. Earlier this year, the median home price neared one million in King County.

    As of this writing, a recession lurks on the horizon and a “correction” seems inevitable, but the market is unlikely to crash like it did during the Great Recession. Vast numbers of Americans will remain frozen out of the housing market, and there’s a lot of understandable frustration and blame to go around.

    There are a host of interrelated factors that have contributed to these high prices. Let’s take a look at a few.

    Shifting Demographic Sands

    The story about mass flight from cities to suburbs during COVID lockdowns may have sold online subscriptions, but it wasn’t really true for Seattle. In fact, according to the latest census data, the bulk of our region’s demographic growth over the last few years landed in urbanized King County. Seattle is not dying; it’s running full speed ahead.

    Many people are trying to buy homes in popular markets like ours, so demand for limited housing is very high. Robust urban centers remain magnets for young professionals, and families in the millennial cohort have entered the housing market in force. Employers like Amazon mean a high-skilled, high-earning workforce that can afford to buy. It also means a lot of people are priced out.

    The Wages of Inequality

    Many people were never priced in. Perhaps the biggest barrier to housing in the U.S. is economic inequality. It’s not so much the price of housing itself; it’s that earning power has not kept up. Wages for low- to moderate-income workers have stagnated over the last few decades and now workers have to contend with supply chain disruptions and inflation taking a bite of their paychecks.

    With low wages and high costs of living, just making rent means never saving up. As Barron’s reported in February, “full-time workers simply do not earn enough to make a down payment on a home” in many U.S. housing markets—especially after COVID layoffs. On top of this, many historically marginalized people don’t have existing home equity or access to intergenerational wealth, making a down payment on a home insurmountable.

    Tales of Investment Capital

    The old canard that Wall Street investors are responsible for high prices is wrong, but there is a kernel of truth. As reported by Fortune in June of this year, during the COVID housing boom, investors—tempted by loose capital, low mortgages, and high appreciation— bought up housing at record levels.

    In the first quarter of 2022, “investors made up a record 28% of single-family home sales… up from 19% in the first quarter of 2021.” According to a study published by the Harvard Joint Center for Housing Studies earlier this year, this single-family home shopping spree further limited the supply for “potential owner-occupants” like first-time buyers.

    In some cases, homes have been taken off the market and turned into rental units. As Forbes has reported, real estate investors and landlords receive large tax breaks for houses that are not available to live-in buyers. This has incentivized taking housing off the market.

    Construction worker moving lumber

    Getting High on Supply

    It’s not news that COVID led to supply chain disruptions across the entire economy. Perhaps the most notable supply shortage for homebuilders was in the lumber industry. In January, the National Association of Home Builders (NAHB) reported that the rise in lumber prices added $18,000 to the average price of single-family homes. Other materials, such as fixtures and windows, have also been affected by shortages, leading to construction delays and, inevitably, higher prices.

    Labor Shortage Shuffle

    Ever since the Great Recession, the residential construction industry has had a labor shortage. According to Zonda’s Ali Wolf, writing for MarketWatch, “Many skilled workers left the housing industry permanently as they reskilled and found jobs in other industries perceived to be more stable.”

    While the labor market has improved since then, 62% of homebuilders report that they’re still falling short as workers retire or switch careers. The endless search for new employees means spending more money on salaries, recruitment, training, and retention—not to mention costly project delays due to staffing shortages—resulting in higher price tags.

    Land and Regulations

    Whether you’re a developer or a homebuilder, creating housing is very expensive. In some of the hottest markets—like San Francisco and Seattle—land itself is often in short supply, leading to high land values. As explained by housing developer Benjamin Maritz in “Meeting Great Expectations” in the fall 2021 issue of Master Builder, to break even, developers have to charge more for fewer square feet. And whether you’re buying a house or renting, it means paying more.

    Add in regulations like lengthy permitting timelines, expensive tree ordinances, environmental review processes, and other onerous policies, construction becomes a very costly and time-consuming enterprise, reducing supply and passing costs onto homebuyers.

    Even policies designed to create affordable housing can produce unintended consequences that stymie it. Seattle’s own inclusionary zoning policy, Mandatory Housing Affordability, slapped fees and floorspace requirements on townhomes, making starter homes ideal for first-time buyers too pricy to build. (See "The High Cost of Regulation" in the summer 2022 issue of Master Builder.)

    Supply and Demand

    This brings us to the biggest, most general cause of high prices. It’s a stone-cold classic: the law of supply and demand. Simply put, people want homes, and there aren’t enough of them, leading to higher prices. From 2018 to 2020, Bloomberg reports, the U.S. housing shortage increased from 2.5 to nearly 4 million units—and the shortage has only worsened.

    According to an analysis by Pew Research published in March, “the number of active housing listings in the U.S. was at its lowest in at least five years in January 2022, with 408,922 active listings on the market,” a 60% drop from 1 million listings in February 2020. Meanwhile, single-family home prices rose from a median of $327,100 in 2019 to $408,100 in late 2021—a 25% leap!

    Clearly we need supply. So, where is it?

    New construction in downtown Bellevue

    Twilight Zoning

    Along with the aforementioned permitting and environmental review processes, which add time and uncertainty to projects, there is also the dominance of single-family zoning in space-constrained cities like Seattle. You can’t have housing where you can’t build it. Some residents have even used environmental review and public comment to scuttle needed housing.

    It’s natural to ask who benefits the most from these policies. In a 2020 report on the housing crisis, Brookings fellow Jenny Schuetz concluded the biggest beneficiaries are not builders, developers, or investors, but existing homeowners who’ve enjoyed a substantial, largely untaxed return on investment and the “political muscle to continue restricting new housing supply.”

    The Bottom Line

    If there is one takeaway from all this, it’s that there is no one issue to single out. Prices are driven by a complex mix of economic, social, and political factors. But the main driver is lack of supply, and the easiest, most direct way of addressing it is building a lot more housing for all types for all people.

    The demand is there; people want housing. It's time to embrace solutions that support increasing supply of homes for current residents, newcomers, and future generations.


    The Master Builders Association of King and Snohomish Counties (MBAKS) has proposed several ways to make it easier to build, including streamlining permitting processes, making zoning changes to facilitate more “missing middle” housing choices in our urban areas, and supporting workforce development to encourage people to enter the building trades.

    MBAKS also works with policymakers and housing advocates to identify ways to create more affordable housing and offers the Housing Toolkit to help communities pursue policies that create more housing choices. Find out more about what MBAKS is doing.

  • 2022 Built Green Conference Preview

    by User Not Found | Aug 29, 2022

    Author: Sonja O'Claire, Built Green Program Manager

    The annual Built Green Conference, presented by DTG Recycling, is just around the corner and we are thrilled to be hosting this live, in-person event to South Seattle College on September 15.

    This year’s confedrence theme is Becoming the Change. These past few years have been filled with crises, changes, and unpredictable events that have created challenges for many homebuilders. Given unforeseen circumstances, builders have had to learn to adapt and build resiliency in their businesses, designs, and processes. Our speakers and participants in this year’s conference will share how they have become one of those changes and thrived.

    Built Green Conference

    Opening Keynote

    Chris Magwood

    We are excited to welcome keynote speaker Chris Magwood, Director of Research of Builders for Climate Action. Chris concentrates on strategies to reverse climate change by making carbon-storing buildings that are also healthy, beautiful, efficient, and inspiring and assisting others to do the same.

    In 2022, Chris joined the Rocky Mountain Institute’s Embodied Carbon initiative within RMI’s Carbon-Free Buildings team. In 2019, he co-founded Builders for Climate Action and has been leading the development of the BEAM carbon estimator tool for low-rise construction. Chris has authored seven books on sustainable building and is co-editor of the Sustainable Building Essentials series from New Society Publishers. His new book, Building Beyond Zero: New Ideas for Carbon-Smart Architecture, is co-authored with Bruce King.

    Sessions We Are Excited About

    A Tool for Climate Action

    What’s New With the Washington State Energy
Code

    Partnerships for Delivering Sustainable and Affordable Housing

    Design and Construction of a High Performance DADU

    See details on the full conference agenda and sessions.

    New to This Year’s Conference: Foreman’s Guide to Built Green Basics

    A Foreman's Guide to Built Green Basics

    New to the Built Green Conference is our Foreman’s Guide to Built Green Basics training track. This new track is specifically designed for your on-site supervisors to give practical advise on how to manage a project and one's team to set them up for successfully achieving Built Green certification and implementing air-tight building enclosures. Josh Salinger with Birdsmouth Design-Build and Greta Tjeltveit with Evergreen Certified will cover the basics of managing a Built Green project from a site supervisor’s perspective and critical building science construction details related to ensuring air-tight building envelopes and efficient HVAC performance. Not only is this track included in a full conference ticket, but it is also available at a deeply-discounted single-track price.

    Change Makers Keynote Panel

    Don't miss our keynote panel at the 2022 Built Green Conference! Moderated by Tadashi Shiga with Evergreen Certified, these inspiring panelists are change makers within their respective homebuilding markets. Hear how these leaders have not just adapted and pivoted to changes in the market but embraced opportunities to thrive.

    Change Makers Panel

    Throughout the day you’ll be able to network with other attendees, sponsors, and speakers about the sessions and gain professional connections. Explore our Green Product Expo Hall where our sponsors will showcase the latest green products, celebrate Built Green Hammer Award winners, and attend an Ask-Me-Anything session with our keynote speaker.

    Don't miss out on any of the action! Follow Built Green on LinkedIn, Twitter, and Instagram for conference updates. Use the hashtag #BuiltGreen2022 to share your excitement about this year’s conference.

    For complete conference details and to register, visit builtgreenconference.net.

    Thank You to Our Sponsors

    2022 Built Green Conference Sponsors

  • Builders Bulletin: Single Family Permits, Builder Confidence Fall Sharply

    by User Not Found | Aug 25, 2022

    By MBAKS Senior Policy Analyst Allison Butcher

    Data in the latest Builders Bulletin show a mixed bag for building permit activity in the first half of 2022. Multifamily permits in the Seattle Metro Area rose 20% in June, compared to the same period last year, led by King County where it was up 30%. Multifamily permit activity was relatively flat in Snohomish and Pierce counties.

    Meanwhile, single family permits are down 17% across the Seattle Metro area as of June. Separately, the NAHB/Wells-Fargo Housing Market Index, which measures the confidence of single-family builders nationwide, has been falling amid higher interest rates and ongoing supply chain problems. Read NAHB’s latest press release on its builder confidence survey.

    Download this month's report:

    September 2022 Builders Bulletin

  • Beneath the Surface: Conversations With Mohler Design, Distinctive Glass, and Hedlund Painting

    by User Not Found | Aug 16, 2022

    By MBAKS Content Strategist James Slone

    A home is not truly complete until its unique details are set in place. Crystalline shower doors, eye-popping accent walls, and ornate tile floors transform mere rooms into showpieces offering a lifetime of delights.

    It’s not easy putting on the finishing touches. Tile, glass, and paint may be surfaces, but the work they require is anything but skin-deep. I spoke to three trades professionals to find out how they make functional spaces extraordinary.

    Bath project showing off the painstaking work, masterful skill, and artisanal creativity that goes into Mohler Design’s vividly eye-catching tile creations. Photo credit: Cindy Apple Photography

    Bath project showing off the painstaking work, masterful skill, and artisanal creativity that goes into Mohler Design’s vividly eye-catching tile creations. Photo credit: Cindy Apple Photography

    Mohler Design—Striving for Happy Customers

    There is nothing like a glimmering backsplash beckoning from the kitchen or intricately patterned entryway tiles inviting you home. Since 2001, Mohler Design has offered exquisitely detailed tiling services throughout the Seattle area that make everyday spaces stand out.

    Founder Bill Mohler tells me that when he started the company in 2001, “It was just me and two other installers.” But skill, talent, and ambition quickly attracted a highly skilled team of craftspeople united by a passion for creating inspiring designs for kitchens, bathrooms, flooring, and an array of other surfaces.

    “We pride ourselves on education and training and making sure all our [tile] setters are updated on current installation methods,” says Mohler. “We work with all types of tiles from classic to modern to genuinely unique designs.”

    Custom work is a pleasure for Mohler Design and the company never lacks for exciting new projects. “We typically complete over 100 a year,” Bill explains. A project can require as few as one installer, or several if it’s a large custom build. Either way, “It is essential that we work together with other contractors to ensure that projects run smoothly and on time.”

    For Bill, there’s never a dull moment working with individual homeowners or designers and builders on a diverse spectrum of projects. “Our projects can vary greatly in size and detail from a small backsplash to a large custom home build with tiling in multiple rooms.”

    With two decades of experience and a reputation for excellence, Mohler Design has established strong working relations with the finest tile and stone distributors in the industry and have collaborated with top designers, builders, and general construction firms in the area.

    Bill takes great pride in the company’s long-standing relationships throughout the community. “We have been honored,” he says, “to work on some very cool projects over these past 20 years.” Quite a few have netted significant accolades, including several Trades Excellence in Remodeling Awards from MBAKS.

    Awards are great, says Bill, but they’re not the biggest motivator. “When all is said and done, we strive to ensure our clients are happy.”

    Distinctive Glass—A Legacy in Glass

    Custom glasswork courtesy Distinctive Glass. Highlights include shimmering glass shower walls and doors showcasing a minimalist rack wine room.

    Custom glasswork courtesy Distinctive Glass. Highlights include shimmering glass shower walls and doors showcasing a minimalist rack wine room.

    For a quarter of a century, Distinctive Glass Inc. has offered glass design, fabrication, installation, and sales services to homes throughout Washington, specializing in iridescent shower doors and luminous mirrors. Their production team handles everything in-house, with an eye for accuracy and efficiency.

    Principal Brian Bergstrom says that every project is given careful consideration. “We set up a site visit with the client or the team of designers, architects, and contractors to help understand what they’re looking for in terms of design and product specifications.”

    “We ask a lot of questions, listen carefully, and do our best to help the client get what they envision. It’s so fun to see [a client’s] dream bathroom completed with a really nice shower door or mirror. It puts that finishing touch on their home.” The effort involved is worth it but takes time.

    “An average shower door takes about four to five weeks to fabricate, but some custom showers can take as long as eight. With sales, estimating, production, and installation, it takes seven to nine different people to finish an install. We complete about 15 per day.”

    The company has a sixth sense for what the customer wants, and experience means they can deliver. “We have 10 employees who’ve been with us for 20 years,” says Brian. “What makes the company is the quality of people we have working with us.”

    Brian’s passion for glass is a family legacy. “I’m a third-generation glass guy,” he says. “My father and grandfather were lifelong glass guys. Both of my boys are now in the industry and love it. My co-founder and business partner Dennis Vogt started in the 1970s.

    “Dennis and I had a vision of being known for the highest-quality glass work in the state. We try very hard for that.” Now, says Brian, they’re doing it in more than one state.

    A longtime Distinctive Glass employee Matt Dunston recently opened a new location in Arizona to bring the shop’s high-quality work to the Grand Canyon state. “It is doing very well, and we are excited about what the future will bring.”

    Hedlund Painting put the finishing touches on this stunning
Kirkland update with gorgeous interior and exterior paint that makes the home seem lighter than air.

    Hedlund Painting put the finishing touches on this stunning Kirkland update with gorgeous interior and exterior paint that makes the home seem lighter than air.

    Hedlund Painting—Picture-Perfect Finishes

    A house is just a structure before you add paint. With vivid colors and tactile textures, Lynnwood-based Hedlund Painting transforms mere collections of floors, walls, beams, and ceilings into homes brimming with vibrancy and life.

    Their luminous work has won numerous awards, including several Best of Houzz Awards and Angi Super Service Awards in 2019, 2020, and 2021.

    Hedlund Painting doesn’t just paint. They offer a full range of services, including interior and exterior staining, cabinetry refinishing, millwork, drywall repair, and wall texturing—and they do it all on point. But the power of their work is about more than mere craft and artistry. It’s also a matter of pride.

    The company’s success, says owner Christopher Whitman, lies in their dedication to customer service and quality results. With years of experience painting thousands of households, the company has developed highly efficient work processes that keep projects on-time and on-budget.

    Their website declares, “We are not looking for a single job; we build relationships that last.” This is accomplished by “showing up when we say we will, respecting the job site and everyone we interact with, and by being honest and ethical.”

    To ensure that the end result meets or exceeds client expectations, Hedlund maintains strong lines of communication with clients, emphasizing punctuality, cost-effective technique, and perfect finishes.

    Whitman says that Hedlund’s team, both office and field staff, work closely together. “Office Manager Carmen oversees internal operations while Charlie, Rigo, and Zak provide estimates and other customer-facing services. Vince and Erika handle day-to-day field tasks such as scheduling the crews, material orders, and onsite customer relations. All in all, it’s a team effort and we strive to emphasize that to each other and our clients.”

    From the moment they contact the client, Hedlund initiates a “very friendly and informative” process. “When conducting the walk-through, we provide the client a detailed and organized list of their requests and our tasks.” The client agrees to the work to be completed before a single brush is dipped.

    “Upon agreement, the task list is given to the project managers who execute all the details and tasks discussed during the initial walk-through.” The work is always aligned with the customer’s wishes. What they dream up is what they get.

    Christopher loves the process. “I have a lot of fun helping clients achieve the changes they’re looking for. Painting as a whole is a reasonably cost-effective way to make huge aesthetic changes in your home. I personally find making that connection on a personal basis very rewarding.”

    For Hedlund Painting, that human connection is the real finishing touch.

  • Builders Bulletin: Supply of Homes for Sale on the Rise

    by User Not Found | Aug 03, 2022

    By MBAKS Senior Policy Analyst Allison Butcher

    June housing data from the Northwest Multiple Listing Service show a growing inventory of homes for sale, with 1.34 months’ supply available in both King and Snohomish counties. This marks the first time the housing measure has exceeded one month’s supply since September 2020 in King County and May 2020 in Snohomish County. While this moves us toward greater balance in the market, many analysts consider a four-to-six-month level as an indicator of a healthy market.

    Download this month's report:

    August 2022 Builders Bulletin

  • Building Spaces of Belonging

    by User Not Found | Aug 02, 2022

    Author: Sonja O'Claire, Built Green Program Manager

    Building a home has always been more than a construction project on a plot of land. It’s the creation of a place of physical and psychological safety where hopes and dreams can flourish, a place to make connections with others, raise families and grow old, a place to call home. These spaces of belonging are the foundation for building community.

    Young girl with construction hat playing

    Despite the myriad benefits of owning a home, many community members don’t have access to homeownership or are subjected to higher rates of environmental pollution due to codified and institutional systems that persist to this day. Many also lack living-wage jobs that would make homeownership more attainable. In order to overcome these disparities, an equitable, just, and inclusive approach is required, one that opens the door to homeownership as well as living-wage jobs in the building trades.

    Sustainability Venn diagram

    Social institutions and equity are core components of sustainability and sustainable development and have been a value of the Built Green program from its beginning. Other green building certifications have looked to address equity by encouraging the construction of affordable housing units. Built Green was the first residential certification in the country to establish a requirement that focused on how the entire home building process – from developer to homebuyer– can move the needle on equity and social justice.

    Developers, designers, and builders direct how capital resources are distributed through site selection, design aesthetics and function, who is hired for the job, and what vendors are used to source materials. Using these investment decisions to create spaces of belonging and centering equity in turn provides economic and growth opportunities, reduction in turnover costs, and increases the applicant labor pool for builders to capitalize on.

    Built Green implemented the Equity and Social Justice (ESJ) Section into its latest checklists to codify the intent of addressing inequality and alleviating barriers experienced by marginalized populations. To accomplish this the Built Green team started by reallocating long-standing credits for building accessory dwelling units, stakeholder engagement, and transit-oriented, pedestrian-friendly, and accessible design into this new section. Additional new credits were conceived to offer flexibility to a variety of company sizes, project types, and site contexts. The new credits were crafted through a process of stakeholder outreach and taking inspiration from existing equity scorecards and of what some Built Green members were already doing.

    The ESJ credits are intended to support developers, designers, and builders in their efforts to promote equity and inclusion, one home at a time. They provide mutually beneficial actions builders can take to address workforce supply and retention, climate resiliency, accessibility, and homeownership.

    To alleviate concerns about how builders can incorporate this new Built Green requirement into their projects, the remainder of this article offers clarification on writing a project-specific ESJ Plan and implementation examples for different star levels.

    Writing a Project-Specific ESJ Plan

    Anyone who has managed a project, especially as one as complicated as building a home, knows that if it’s not written down in the plan it doesn’t get done. A project-specific ESJ plan is like any other plan that is produced as part of the project management process: a project team must first consider their options given project constraints, then develop objectives, determine actions to take, assign responsibilities, and create a timeline to achieve each objective. A project-specific ESJ plan is required for all projects seeking 4-star certification or higher.

    A sample process for writing an ESJ plan is described below.

    1. With the project team, consider the project, site, and the company’s context. Based on that context, brainstorm some ways the project could incorporate equity and social justice into its design, build, or sales process. Tip: Look to the ESJ section of the checklist for ideas of how this could be done.

    2. Using the Builder’s letterhead write a memo, using an extended outline format that describes possible ESJ objectives that could be incorporated in the project. For each ESJ objective provide the specific action items that will achieve its intent (including as much specific details as possible), ESJ credits related to these actions, responsible party accountable for implementation, and anticipated completion timeline/project phase. Tip: Action items could be the specific ESJ credits associated with those objectives. See handbook for examples.

        a. Only list realistic and relevant objectives and actions that could be used by the project. For example, if the project was financed and planned to be sold for market rate, then the objective of providing workforce housing is not realistic or applicable. If the home is built on a sloped property than having a stepless front entry would not be a realistic action item to an objective of increasing universal access.

        b. Alternatively, Gantt chart can also be used as a format for the ESJ plan to document the objectives, actions, responsible party and implementation timeline.

    3. Highlight or bold the text of any priority ESJ objectives in the list. Priority ESJ objectives are defined as those with the highest possible impact to increase equity and social justice. Tip: Priority items may not always be the most expensive or time consuming. Community or stakeholder outreach can provide valuable insight to what is considered a priority of local residents and also earns ESJ credits.

    4. Of all the objectives and actions that are possible, document which ones the project team is committed to achieve on this project.

    5. If any of the priority objectives or actions were not committed to, describe the reasons why they were not selected.

     

    ESJ plan snapshot text

    The ESJ plan will not be graded on which objectives or actions are listed or how many of them are implemented on the project. The intent is for project teams to start building their ESJ muscles and to begin considering it like any other part of the project’s planning process. Like with other new green building strategies, with each project, teams will learn from the experience, create a palette of ESJ actions that streamline the process, and eventually weave it into the company’s culture.

    ESJ Implementation

    The following tables layout example strategies a hypothetical project team could perform to earn points for ESJ credits at each star level. Please keep in mind there are multitudes of credit combinations and ways for each of these credits to be implemented, and that some ESJ credits will also earn the project points in other sections of the checklist:

    3-Star Single Family home in rural community (15 points minimum)

    ESJ Action/Credit Implementation Points
    6-14: Stepless front entry and stepless other entry No steps to access home’s front door and stepless access to garage 3
    6-16: Install exterior accessible hard surface gathering area Home has a patio that requires no stairs or steps to access from the home 1
    6-23: Bedroom, bathroom, kitchen, and laundry appliances on main floor Home’s main entry leads to the main floor that was designed for aging in place 8
    6-26: Design low maintenance outdoor spaces Landscape designed with drought tolerant and native perennials, trees, and shrubs* 1
    6-32: Design to promote and encourage pedestrian-friendly and safe neighborhoods No fence in the front yard, bicycle access through garage, street trees in courtesy strip 3
    Total Points 16

    *Earns project credits in Site and Water section

    4-Star Single Family infill home in Kirkland (20 points minimum)

    ESJ Action/Credit Implementation Points
    6-3: Offer equity-focused trainings and workshops to staff, subcontractors, and other building partners GC has staff attend MBAKS and ANEW Rise Up workforce development trainings 5
    6-9: Develop a project-specific ESJ plan clearly indicating equity objectives; identifying priority elements. Required ESJ plan includes measurable actions that could be implemented, including the ones on this chart 3
    6-28: Build within 1/4 mile of a transit stop Infill project site located near bus line 3
    6-29: Build on a lot that is within 1/2 mile of at least six essential services Infill project site located in walkable neighborhood* 3
    6-36: Hire temporary employees or apprentices through Weld Works or ANEW GC hires Weld Seattle workers for 25% of the temporary work hours on the project during site clearing and demolition 5
    6-40: Builder offers mentorship program to employees GC maintains a mentorship program for employee’s professional development, which requires leadership staff to attend equity-focused trainings 3
    Total Points 22
    Over Achievement Opportunity—6-8: Build an ADU or DADU +10 points 32

    *Also earns points in Site and Water section

    5-Star Single Family townhomes in Seattle’s Ballard neighborhood (25 points minimum)

    ESJ Action/Credit Implementation Points
    6-9: Develop a project-specific ESJ plan clearly indicating equity objectives; identifying priority elements. Required ESJ plan includes measurable actions that could be implemented, including the ones on this chart 3
    6-15: Hard-surface stepless grade changes at exterior to allow access to essential maintenance locations All units have a stepless path from the garbage can storage area to municipal pick-up area 1
    6-28: Build within 1/4 mile of a bus stop Site located near a bus line 4
    6-29: Build on a lot that is within 1/2 mile of at least six essential services Infill project site located in walkable neighborhood* 3
    6-32: Design to promote and encourage pedestrian-friendly and safe neighborhoods No fence in the front yard, bicycle access through garage, street trees in courtesy strip 3
    6-39: Offer vacant properties to WELD Seattle for use as temporary housing GC contracts with Weld Seattle to allow the site’s existing home for temporary housing prior to its deconstruction 8
    6-44: Annually provide pro bono or reduced rate services to nonprofit or historically marginalized community organizations GC builds a ramp at MBAKS annual Rampathon event 5
    Total Points 27

    *Also earns points in Site and Water section

    4-Star Multifamily mid-rise, mixed-use apartment in Seattle’s Beacon Hill neighborhood (30 points minimum)

    ESJ Action/Credit Implementation Points
    6-40: Engage Local Community groups to assess community needs to inform the project-specific ESJ plan Project team held outreach meetings with Beacon Hill residents and community leaders so they could collaborate on a design that could address known disparities in noise and outdoor air pollutants experienced in Beacon Hill 8
    6-9: Develop a project-specific ESJ plan clearly indicating equity objectives; identifying priority elements. Required ESJ plan includes measurable actions that could be implemented, including the ones on this table and more from universal design credits 3
    6-12: Site, design, and construct to counter known disparities identified through engagement with community stakeholders Based on community’s comments the project team designed the building to include Triple pane windows, HRV and HEPA filters in the air-tight building, and a pedestrian-friendly exterior design with additional trees.* 15
    6-28: Build within 1/4 mile of a bus stop Site located near a bus line 4
    6-29: Create mixed use building Building designed with retail and live/work units on ground floor with 4 stories of apartments above 10
    6-10: Implement priority elements of project’s ESJ plan Implemented all identified priority ESJ objectives from the project’s ESJ plan 7
    Total Points 47

    *Also earns credits in Site and Water and Energy Efficiency sections

    Want to dive deeper into the details on this section? Watch the Mastering Built Green: Equity and Social Justice Credits webinar:

    Please note this was recorded prior to the ESJ section being renamed from Section 1 to Section 6. All credits mentioned correspond with Section 6 of the checklists.

    Further Resources

    2021 Single-Family/Townhome New Construction Handbook (starts on page 254)

    2021 Multifamily Handbook (starts on page 187)

    The Business Case for Diversity and Inclusion in the Construction Industry

    An Antidote to the Great Resignation - Look To Your Culture and Values

    Codifying Prejudice

    Racial Inequities In Housing

    NAACP: Guidelines for Equitable Community Involvement in Building & Development Projects and Policies

    A Key Challenge for Minority-Owned Subcontractors? Misperceptions.

    Building Mentorship Programs for People of Color

    Master Builder Association of King and Snohomish programs that deliver ESJ credits:

    MBAKS Workforce Development

    MBAKS Classes and Education

    MBAKS Community Stewardship

  • Made to Order: Two Firms Elevating the Northwest Custom Home

    by User Not Found | Jul 20, 2022

    By MBAKS Content Strategist James Slone

    What makes a house a home? Is it an inviting place to raise a family, an escape from life’s worries, or a vantage point to take in nature? Is it a sustainable retreat or a base of operations in a bustling city? It’s all up to the people living there.

    But what makes a home amazing? Building a truly inspiring abode requires a touch of magic. To find out what that magic is, I talked to two local firms with very different sets of priorities and approaches to custom homes—CAST architecture and Everton Homes—to learn how they create spaces that enchant.

    Letting the light in: Villanueva Residence in Seattle by CAST architecture. Photo credit: Andrew Giammarco Photography

    Letting the light in: Villanueva Residence in Seattle by CAST architecture. Photo credit: Andrew Giammarco Photography

    CAST architecture: Cast in the Northwest

    There is something singular about the Northwest. Maybe it’s the vast open spaces, or forward-looking communities. Perhaps it’s the vivid contrast between the sun-dappled lands east of the Cascades and the rain-blanketed forests of the maritime coast.

    Whatever it is, Seattle-based CAST architecture has channeled it since 1999 with a focus on sustainable, contemporary design that reflects the diverse landscapes of this region.

    The firm casts a wide net of services—construction administration, feasibility studies, and master-planning—aimed at municipalities, businesses, and early education providers. But it’s their arresting portfolio of homes that truly captures the imagination.

    Designing With Place in Mind

    When it comes to designing homes, the Northwest is always front and center. “Balancing the environment with our clients’ needs is the most important part of what we do as architects,” explains Stefan Hampden, a principal at CAST.

    He offers an example of contrasts. “In Methow Valley [in Eastern Washington], we design for snowy winters and sunny summers, with simple roof planes that stretch out and over the conditioned spaces to create protected, accessible outdoor spaces usable during seasonal weather extremes.”

    But when building west of the Cascades they use flexible massing and rooflines to keep out the rain and “create a graceful transition” from inside to out. “With thoughtful planning,” says Stefan, “we are able to create indoor-outdoor spaces that bring a sense of connection to nature even in our light-challenged winters.”

    Principal Tim Hammer expands on the theme. “A home that provides abundant natural light to interiors can be a huge benefit in a region that is gray for much of the year. Successful homes take advantage of what the natural environment provides and connect our clients to their surroundings.”

    Demands differ based on location, says Hammer. “When designing in the city, finding a balance of privacy and connection to nature and the outdoors is always a challenge. Working in rural areas, we have a lot more freedom to capture views and connect to the immediate surroundings.”

    Nelson Residence in Methow Valley is a vacation home for family and friends to enjoy and explore outdoor recreation. Photo credit: CAST Architecture

    Nelson Residence in Methow Valley is a vacation home for family and friends to enjoy and explore outdoor recreation. Photo credit: CAST Architecture

    Casting a Single-Family Spell

    When it comes to single-family homes, CAST’s work is spellbinding. Their buildings are not just designed for function and comfort; they’re stunning, visually cohesive spaces embodying new construction techniques and traditional craft. Open floorplans seem to segue right into the landscape.

    Describing CAST’s style, Hampden says, “While we’re guided by the context and client’s preferences, we tend to embrace an expressive Northwest modernism.” That translates to legibility in materials and structural systems, celebrating what the building is made of instead of hiding it.

    The 12-member CAST team utilizes a wide spectrum of materials, looking for unassuming colors and textures that invite nature in. Despite their eye for handcrafted details, the overall construction is relatively simple to make the most efficient use of resources and energy.

    Dream Cast

    Given the ambition of CAST’s work, I was curious about what they look for in clients. “Clients who are excited about the process and keen to collaborate,” Hampden replies. “Standout projects happen when clients have a dream and are reaching for something larger— sustainability, social equity, or even something playful. The best projects and clients tend to be ones that are aspirational.”

    The magic ingredient to CAST’s success is careful listening and clear communication. Through close collaboration, the CAST team creates a vision that sets project goals and parameters and works with clients and contractors to overcome any challenges that arise.

    “Our clients are often drawn to our projects because they speak to them,” Hammer tells me. “If they’re realistic about time and budget and their values align with ours, we’re off to a good start. It is important we feel like trust and good communication will come easily as we navigate the project.”

    Durable Design

    CAST draws on LEED, passive house, Living Building, and Built Green design principles to ensure the client gets the “budget, performance, and longevity” they want out of their home, and that building resources are responsibly managed throughout the home’s life cycle.

    To CAST, sustainable means architecture that lasts, a “legacy of enduring, high-performance buildings that work with their environment and site.” When I asked how CAST balances resilience, aesthetics, and comfort, Hampden offered another way of looking at it.

    “I don’t view it as striking a balance. I see function as an opportunity for expression rather than something to be covered up.” That can mean super-deep eaves with photovoltaic panels as an awning or an interactive water feature that feeds a water catchment system.

    CAST emphasizes durability, structures that last and require little effort to maintain. “We put a great deal of thought into how structures will weather and wear and choose our structural elements and finishes accordingly.”

    This careful consideration of how a home blends in makes CAST’s homes feel less like alien impositions of style on the environment and more like complementary features. Whether embedded in a city block or a forest in the foothills, they’re an elemental part of their surroundings. They’re built to last.

    This Kirkland residence, by Everton Homes, takes indoor-outdoor living to the next level. Photo credit: Everton Homes

    This Kirkland residence, by Everton Homes, takes indoor-outdoor living to the next level. Photo credit: Everton Homes

    Everton Homes: The Intersection of Luxury and Livability

    Everton Homes offers a captivating mix of familial warmth and sleek modern design, packed with high-end finishes and smart home features. For this Bellevue and Kirkland-based boutique builder, it’s all about the flow and function of the living space. Surfaces dazzle, but it’s the thoughtful floorplans that make their homes warm and inviting.

    Each house is unique, Co-Owner Igor Tsapenko tells me, tailored to the preferences of their owners. “We’re all fans of a spectrum of architectural styles ranging from contemporary, modern, and hybrids of both, including farmhouse and craftsman styles.” But what really matters is what’s inside.

    The first word that comes to mind when touring an Everton is quality. Everything from layout to fixtures is top-notch. It’s all about having the right team, says Tsapenko. “We employ people who are passionate about what they do and creating a standout product. They will not settle for anything short of perfect.”

    “We hope that interior design features catch people’s attention and admiration,” says Tsapenko. “We want them to look at some of the elevated features like a work of art in a gallery.” But don’t be fooled by the spectacle. What Everton cares most about is the experience of actually living in their homes.

    Multiple Generations Living Together

    According to Frank Bua, Everton’s lead designer, “Creating a home is not just going down a checklist of rooms and amenities or making them all as big as possible. It’s considering how the homeowner moves from one space to another.” Everton designs spaces to make their occupants feel comfortable, relaxed, and immediately familiar with certain elements.

    Bua says their designs must also be responsive to changing lives. “In 1923, Le Corbusier described a home as, ‘a machine for living in.’ The way we live in our homes continues to evolve like everything else, so the space’s functionality has to be both current and adaptable” to the needs of future generations.

    Co-Owner Iryna Sysenko says that when Everton designs homes, they picture a family with children and multiple generations living together under the same roof. They always include a junior master suite and spacious kids’ bedrooms. “We try to anticipate features that offer the best use of spaces for future homebuyers.”

    This luxurious yet functional five-bedroom, five-bathroom home in Bellevue is nestled on a large, quiet lot. Its spacious floor plan caters to the owners’ active lifestyle, while large doors from main rooms seamlessly transition to the outdoor space. Photo credit: Everton Homes

    This luxurious yet functional five-bedroom, five-bathroom home in Bellevue is nestled on a large, quiet lot. Its spacious floor plan caters to the owners’ active lifestyle, while large doors from main rooms seamlessly transition to the outdoor space. Photo credit: Everton Homes

    Tech-Friendly, Not Technocratic

    Comfort doesn’t just mean a flowing space. It also means green, healthy design. For Everton Homes, that means efficient use of technology to save energy and maintain a healthy environment— smart heating, advanced insulation, EV chargers. But they tuck away the gadgetry to keep the house feeling like home.

    Technology, says Sysenko, is a natural fit. “Everton’s founders came from the local tech industry, so smart technology is naturally on the top of our list of priorities, and we deploy it to make our homes more relaxing and more secure for families.”

    “Along with standard smart home fare like smart thermostats, locks and chimes, switches, surround-sound audio, and irrigation control, we’ve also started providing wired security cameras and dedicated equipment closets that [discreetly] connect it all.”

    Sysenko says that tech is not the main feature so much as a means to an end. “As tech gets better and smaller, it stops being a design centerpiece. This is crucial because we want to create a warm family environment.” For Everton Homes, hearth and home are always front and center.

    Making the Next House the Best House

    Everton Homes is involved in every aspect of homebuilding, from lot acquisition and design to construction and sale—starting from market research and ending with the buyer moving in. Getting it all right is an iterative process. “Ideally, we’d start building, staging, and selling in rapid succession after permitting,” says Tsapenko. “The reality is that we constantly go back to the design.

    “We may get feedback from our open houses and sales or quality assurance info from the construction team, or perhaps learn new design techniques between projects or simply have to deal with material availability issues.” But for Everton Homes, revisiting the design isn’t a bug—it’s a feature.

    As Tsapenko elegantly puts it, “All of this drives the next house to be the best house.”

  • The Cottage Company—Ida Pearl House Remodel & Post Cottage

    by User Not Found | Jul 01, 2022

    Vital Stats

    Section

    Remodel Points

    DADU Points

    Location: Seattle
    Star Level: 4-Star
    Checklist: Remodel & 2018 New Construction Single-Family/Townhome
    Verifier: Evergreen Certified
    Site and Water 105 146
    Energy Efficiency 95 83
    Health and Indoor Air Quality 99 103
    Material Efficiency 94 70
      Total Score 393 472

    While many urban areas with single-family zoning constantly battle NIMBYism (“Not In My Backyard”), The Cottage Company embraces the concept of “Neighbors for More Neighbors” via density infill at their Ida Pearl House Remodel & Post Cottage new construction project.

    The Cottage Company—Ida Pearl House Remodel & Post Cottage

    Inspired by the 19th century farmhouse ‘compounds’ of clustered worker cottages, this site, located in the Olympic Hills neighborhood of Seattle, created moderate density by constructing a detached accessory dwelling unit behind a newly renovated 1928 Tutor cottage in a single-family neighborhood a short walking distance from shops and transit in Northeast Seattle’s Lake City Urban Village.

    The project team sought to preserve as much of the existing cottage as possible including elements like the clear fir and oak flooring with inlay, mouldings, arched doorways, divided light windows, stone fireplace, and ‘Dutch’ front door. The Ida Pearl House kept much of the original exterior aesthetic, but finished the existing basement and built-up portions of the roof to allow for more total livable area. While designing for more livable spaces within the home, the envelope, structure, and systems were also brought up to and, in some cases, beyond code. To maintain much of the existing interior finishes and aesthetic, a centralized heat pump air handler replaced the existing HVAC system that serviced the basement and main floor and supplemental ductless mini-splits were installed at the top floor. Additionally, all existing exterior walls and roofs were insulated, and a hybrid heat pump water heater was installed to address the domestic hot water needs.

    The Cottage Company—Ida Pearl House Remodel & Post Cottage
    The Cottage Company—Ida Pearl House Remodel & Post Cottage
    The Cottage Company—Ida Pearl House Remodel & Post Cottage
     

    The newly constructed Post Cottage is separated from the Ida Pearl House by a green ‘buffer’ space, keeping the lots private from one another, but allowing for connectivity to nature. The interior design features a large, vaulted ceiling great room, dining nook, and Douglas fir flooring throughout the one-story, two-bedroom space. In tangent with a robust liquid-applied weather resistant barrier (Enviro-Dri) to protect the home from moisture and air leakage, high-efficiency systems including a centralized, ducted heat pump air handler and Energy Star appliances were installed to perform over 20% better than a new code-built house.

    The entire project is centered around the concept of preservation: from the reuse/refinishing/retention of existing interior elements and large heritage cedar trees on site, to the naming of the homes based on the original farmstead owners, nod to the historical architectural style of the time, and an extensive owners’ manual that includes the site’s history as well as a “Who Built My Home” section for major subcontractors involved in the project.

    The Cottage Company—Ida Pearl House Remodel & Post Cottage
    The Cottage Company—Ida Pearl House Remodel & Post Cottage
    The Cottage Company—Ida Pearl House Remodel & Post Cottage
     

    Built Green Highlights

    Site and Water

    • Large cedar trees retained on site
    • All pervious hardscaping
    • 100% stormwater management on-site
    • Private outdoor areas for both homes

    Energy Efficiency

    • All-electric site
    • Designated outlet for EV charger at garages
    • Remodel: Upgrades implemented to bring the home beyond code and perform 20% better than new construction
    • Remodel: Hybrid heat pump water
    • DADU: High-efficiency, centralized heat pump air handler
    • DADU: Enviro-Dri liquid-applied WRB

    Health and Indoor Air Quality

    • Detached garages (Remodel carport rebuilt as garage)
    • Moisture management methods beyond code implemented (dampproofing paint, dimple drainage mat, interior footing drain)
    • Remodel: Comprehensive improvement for existing dining room crawl space
    • DADU: No carpet

    Materials Efficiency

    • Over 7 regionally produced materials used throughout each unit
    • Remodel: Reused majority of original framing material (donated the rest), original interior trim at windows/doors, original front door and bathroom door, window and door hardware
    • Remodel: Refinished all original wood flooring on main and upper floors
    • DADU: Salvaged or SFI Certified Sourcing Montana Douglas Fir flooring
    The Cottage Company—Ida Pearl House Remodel & Post Cottage

    Photos Courtesy of The Cottage Company, Clarity NW Ryan Slimak Photography

  • Builders Bulletin: Washington, Puget Sound Region Continue to Grow

    by User Not Found | Jun 30, 2022

    Homing in on Our Region's Housing Statistics

    By MBAKS Senior Policy Analyst Allison Butcher

    The Office of Financial Management (OFM) released its annual population estimates this week for the state of Washington and its counties, cities, and towns. The report shows that as of April 1, 2022, the Puget Sound region’s population (King, Snohomish, Pierce, and Kitsap counties) is 4,383,300, an annual increase of 52,550. Most of the growth occurred in King County, which added 30,650 over the past year. This is down from the average of 33,800 people per year in King County between 2010 and 2020. Snohomish, Pierce, and Kitsap counties also saw a smaller population increase than the previous year. For more information, see OFM’s press release.

    Please contact data@mbaks.com with questions or feedback. We want to know what data would be useful to you!


    Months' Supply of Housing Inventory

    As of May 2022

    icon showing a house for sale King County had 0.83 months' supply of inventory (up from 0.55 months' of inventory a year ago).
    icon showing a house for sale Snohomish County had 0.85 months' supply of inventory (up from 0.34 a year ago).

    Many industry analysts consider a four-to-six-month level as an indicator of a healthy market.

    Source: Northwest Multiple Listing Service

     

    Median Home Price

    May 2022

    icon showing a price tag The median price of single-family homes and condos was $880,000 in King County and $782,800 in Snohomish County.
    icon showing a price tag For single-family homes only, the median price in King County rose 14.82%, from $869,975 a year ago to $998,888. The median price in Snohomish County rose 16.93%, from $697,000 to $815,000.
    icon showing a price tag In Seattle, the median price of single-family homes and condos was $899,475. The median price for single-family homes only was $1,025,500, a 11.59% increase from $919,000 in April 2021.

    Source: Northwest Multiple Listing Service

     

    Building Permit Activity

     

    Jobs

    icon showing a hand holding a hammer The seasonally adjusted Washington unemployment rate for May 2022 is 3.9%; for Seattle/Bellevue/Everett, it is 2.7%.
    icon showing a hand holding a hammer Construction employment in Washington increased by 800 between April 2022 and May 2022. Total construction employment is 232,400 statewide and 107,600 for Seattle/Bellevue/Everett specifically.

    Source: Employment Security Department: WA Employment Estimates (Seasonally Adjusted), May 2022 and Bureau of Labor Statistics.

     

    Population

    icon showing a group of people The Puget Sound region's population as of April 1, 2022 was 4,383,300. Over the past year, the region added 52,550 people, as follows:
     

    King County

    +30,650

    Kitsap County

    +3,200

    Pierce County

    +9,200

    Snohomish County

    +9,500

    Source: Office of Financial Management

    Icons made by Freepik from flaticon.com

  • Green Machine: Green Canopy NODE’s Quest for Sustainable and Affordable

    by User Not Found | Jun 21, 2022

    By MBAKS Content Strategist James Slone

    Built Green 4-Star townhomes at 5200 Renton Avenue South in highly-walkable Columbia City

    Reducing greenhouse emissions means housing more people in healthier, more energy-efficient homes in cities near jobs, amenities, and transit. Unfortunately, a lack of affordable options has priced residents out of booming cities like Seattle and into sprawling suburbs with long, carbonintensive commutes.

    A new generation of homebuilders understands that the lack of affordable housing and climate change are related problems requiring interlinked solutions. One of the leading lights in this new way of thinking and acting is Green Canopy NODE.

    Where housing is located and who can afford it matters as much as how it’s built—a realization Green Canopy NODE intuitively grasps. For them, solving the housing problem at scale means creating a new paradigm where green housing is accessible to people of all income levels. It sounds easy, but it’s complicated.

    Green at Scale

    Green Canopy NODE brought together Seattle-based carbonmitigating construction firm NODE with Green Canopy, a green development and construction company based in Seattle and Portland with a long history helping lead the net zero revolution.

    In a 2021 press release announcing their merger, Green Canopy NODE Co-CEO Bec Chapin said that the company’s aim was “an evolution of the industry to build more houses faster that create greater health, wellbeing, and resiliency for people and communities now and in the future.”

    For Aaron Fairchild, Green Canopy NODE co-CEO, it’s as much a moral question as a practical one.

    “As humanity continues to grapple with the need to house more people, our communities and planet feel the strain. We’re trying to lessen the strain and offer more regenerative solutions that help build communities while prolonging the life of the resources required to do so.”

    For Green Canopy NODE, transforming the homebuilding industry requires a multifaceted approach: building more housing where it’s needed, offering a full suite of development services to other housing providers, prefabricating building components offsite, and deploying an impact investment fund for projects.

    kitchen, Built Green 4-Star townhomes at 5200 Renton Avenue South in highly-walkable Columbia City

    Build, Build, Build

    Green Canopy and NODE’s coming together allowed them to pool their respective experience in green development and technological innovation to scale up construction, leading to their multifaceted approach. I recently chatted with Fairchild to find out more about each aspect of their overall work.

    Obviously, the first is building housing, lots of it.

    Green Canopy NODE builds rowhouses, townhomes, and multifamily units because they’re a more affordable option for families who want to live in high-quality neighborhoods with jobs and amenities. They are experts in the “missing middle” with the real estate chops to secure land for infill development.

    Not an easy ask in a city where land value is through the roof.

    “It’s hard to build affordable housing in urban areas where housing is needed most,” Fairchild explains. “It requires greater subsidies and a more flexible approach. As time goes on, private, nonprofit, and public partnerships will become the norm.”

    It’s not enough to just build them. They also have to be green.

    “Nearly 100 percent of our homes are Built Green or Earth Advantage Certified,” says Fairchild. “At Green Canopy, we historically focused on energy efficiency. We’ve always built all-electric homes and have completed several net zero homes,” or homes that produce more energy than they take from the grid.

    Building green homes not only helps the environment; it also makes housing a more affordable proposition. “Because we build homes that perform well beyond code, utility costs are lower, and residents save money.” Remarkably, the company is able to deliver net-zero-ready homes to the market at the same price as code-built.

    But decarbonization is no longer just about saving energy. Green Canopy NODE has recently started focusing on carbon emitted from the production of their building materials, what’s known as embodied carbon. Making sure embodied carbon doesn’t outweigh a home’s performance is the next frontier in green building.

    Promoting Innovation

    Perhaps the most essential element of lowering green construction costs is using new technologies to increase productivity, including standardizing building components, modernizing the workforce by training them in the latest in construction methods, and manufacturing pre-fab building components.

    For Fairchild, manufacturing is especially important. “To scale up and lower costs, the industry will need to embrace the power of off-site manufacturing more and more. It is the only known pathway to the sort of efficiencies required to build more sustainable, higherquality, lower-cost housing.”

    By manufacturing offsite in the controlled environment of a factory and quickly assembling components onsite, Green Canopy NODE avoids inefficiencies. The company is investing heavily in pre-fabricated solutions that can be moved directly from manufacturing facilities to project sites.

    They’re especially excited about fabricating cross-laminated timber (CLT)—an engineered wood product made from wood stacked and glued together at 90-degree angles—for residential mid-to-low rise construction.

    CLT is easy to carve and groove with computer-controlled cutting machines, making it uniform and easy to install. The best part? “Along with being a beautiful and exceptionally strong building material,” Fairchild enthuses, “CLT also sequesters carbon and can be reused at the end of a building’s life."

    Built Green 4-Star homes at 2450 NW 63rd Street in Ballard

    bathroom, Built Green 4-Star homes at 2450 NW 63rd Street in Ballard

    Spreading the Love: Development Services and Impact Investment

    To deliver the high volume of housing needed to have a substantial impact, Green Canopy NODE also needs to be able to employ their strategies on an expansive multi-project scale. The best way to do that is by extending a helping hand to other builders and nonprofit housing providers.

    Their real estate development services have helped complete hundreds of homes reliably and cost-effectively. Current projectpartners include Sunnyside Village Co-Housing, Habitat for Humanity, Africatown Community Land Trust, Homestead Community Land Trust, and Grow Bainbridge.

    Their services cover all aspects of homebuilding, including acquisition, finance, estimating and feasibility, architecture, construction, and warranty services. The key to their services’ effectiveness, says Fairchild, is that they’re vertically integrated.

    “Vertical integration means our team can work with you at any stage of the development process, avoiding the headache of external bottlenecks.” It lowers the cost of developing housing projects because it cuts construction costs by consolidating different stages like R&D and procurement.

    The result is a high degree of flexibility and control. “We’re able to rapidly respond to requests, enhancing our ability to collaborate.” And because the company manages real estate funds, they can drive housing demand in a way that’s “aligned with our sustainability and technology goals.”

    The company created an impact investment fund management firm, Green Canopy NODE Capital, to invest in infill building projects in Seattle and Portland.

    Currently, Green Canopy NODE offers both investment and fund management for more than 90 shareholders and over 45 limited partners. Over the last decade, the company has leveraged their building expertise and knowledge of the housing market to raise and manage over $70 million in accredited investor capital.

    Heart and Soul

    Green Canopy NODE has already tallied an enviable list of accomplishments. As of this writing, they have built more than 300 Built Green and Earth Advantage Certified homes in and around Seattle and Portland, mitigated 33,000 metric tons of greenhouse gas, and steered investment to six major infill projects. And they’re just getting started.

    This success isn’t just an outcome of their business acumen. It’s driven by a housing philosophy. Housing is the “nexus of our lives,” their website declares, “providing shelter, safety, and security,” a place “where one can develop a sense of love, belonging, acceptance with friends and family.”

    Housing is also a solution to sprawl, homelessness, and climate change. Its importance goes far beyond profitability. It may seem idealistic, but the company genuinely believes that a change in paradigm requires a change in thinking. Fairchild says that a sense of mission permeates their company culture.

    The Green Canopy NODE team, he says, shares a sense of purpose, and “a desire to regenerate communities and environments.” When they take on new team members and partners, they “look for people from communities seeking greater empowerment and renewal.”

    Of course, technology, experience, and expertise are crucial to carrying out the day-to-day work. But it’s their focus on community that may be the key to unlocking the new homebuilding paradigm. It’s the heart and soul of Green Canopy NODE.

     

    Article photos courtesy of Green Canopy NODE

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