2026 Legislative Session Recap: Legislature Adjourns Sine Die

The Washington State Legislature adjourned sine die on March 12, ending the 60-day 2026 session. Lawmakers passed several housing reforms aimed at improving permitting, expanding housing flexibility, and supporting homeownership, while the session’s final days were dominated by budget negotiations and a controversial new “millionaires’ tax.”

MBAKS Advocacy During Session

MBAKS members played an active role throughout the session, helping ensure the voice of the homebuilding industry was heard in Olympia. During MBAKS Hill Day, members held 43 meetings with legislators, discussing housing supply challenges and priority housing legislation. Builders also participated in BIAW Hill Day, where members conducted 13 additional legislative meetings. MBAKS members Mark Villwock with DR Horton and Mike Appleby with Chicago Title also provided key testimony on housing legislation during committee hearings, sharing firsthand industry perspectives on how policy decisions impact housing production and affordability.

Key Housing Bills Passed

Condominium Reform (HB 2304)
Allows condominium projects up to four stories and twelve units to use an insurance-backed express warranty, helping reduce litigation risk and encourage smaller condominium development.

Permit Review Streamlining (HB 2418)
Clarifies permit application completeness standards and requires jurisdictions to designate a permit contact, improving predictability in the review process.

Commercial-to-Residential Flexibility (SB 6026)
Allows housing in many commercial and mixed-use zones in cities over 30,000. Cities may require ground-floor commercial uses on no more than 40% of commercial or mixed-use acreage, allowing redevelopment of underutilized commercial property for housing.

Rural Accessory Dwelling Units (HB 1345)
Authorizes counties to allow detached ADUs in rural areas under local regulations.

Middle Housing in Urban Growth Areas (HB 2269)
Extends middle housing types such as duplexes and townhomes to unincorporated urban growth areas.

Building Code Modernization (HB 2228 & SB 5156)
Updates building code provisions by allowing scissor stair designs in certain mid-rise buildings and modernizing elevator requirements.

Budget and Tax Policy

Lawmakers also approved a supplemental operating budget for the 2025–27 biennium totaling more than $80 billion. The budget addresses a projected shortfall through a mix of spending changes, new revenue, and transfers from the state’s rainy-day fund.

The session also saw passage of a new “millionaires’ tax” (SB 6346), imposing a 9.9% tax on income above $1 million starting in 2028. The policy is expected to face legal challenges under Washington’s constitutional restrictions on income taxes.

Looking Ahead

With the session complete, attention now shifts to implementation as state agencies and local governments begin putting these new housing policies into practice.

Read more about the legislative session and a full bill tracker on MBAKS Connect.

Contact: data@mbaks.com

March 2026 Builders Bulletin: Building Permits Slowed in 2025

The March Builders Bulletin features recently released permit data for the Seattle metropolitan area through December 2025. Our three-county metro area (King, Snohomish, and Pierce counties) ended the year with 12% fewer total permits issued than the previous year. This figure reflects a 5% decline in single family permits and a 16% drop in multifamily permits.

Despite the regional slowdown, King County saw a modest bump in single family permits in 2025 while Pierce County experienced an increase in multifamily permits. See the Building Permits section for a complete breakdown by county.

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When housing and environmental policy are designed well, they don’t have to compete. New data from Snohomish County proves it.

A recently released county report confirms that the “right tree, right place” approach is delivering real results. Every residential development completed through 2025 met the county’s tree canopy requirements — and nearly one-third exceeded them. Countywide coverage remains above target, with more than 4,600 new trees planted through new homes built across the county.

What the Data Shows

The report reflects what’s possible when environmental standards are clear, workable, and built into the development process from the start. Builders met the requirements. Many went further. And the county’s canopy continues to grow alongside new home construction.

This is the kind of outcome balanced policy is designed to produce.

Why It Matters

At MBAKS, we advocate for land use policies that allow homes to be built without sacrificing community values — including healthy, sustainable neighborhoods. Snohomish County’s approach demonstrates that sustainability and new home construction aren’t in opposition. With the right framework in place, they advance together.

We applaud the County for taking a data-driven approach to this work and for showing what thoughtful, solutions-oriented policy can achieve.

Read the full report from Snohomish County →

On February 18, Mayor Katie Wilson signed CB 121093 and CB 121135 into law, streamlining SEPA review for infill residential and mixed-use development citywide. MBAKS staff were invited to attend the bill signing and provide brief remarks — an encouraging sign of early collaboration with the new administration.

The event was recorded by Seattle Channel.

A Strong Start

As Seattle enters a new chapter of leadership, MBAKS is focused on partnering to create productive, solutions-oriented outcomes. Being included in this milestone reflects the ongoing dialogue between our association and the Mayor’s Office around housing supply, affordability, and regulatory modernization.

Housing outcomes improve when policymakers and housing providers work together. Early engagement helps ensure policy is practical, predictable, and effective.

What the Legislation Does

CB 121093 exempts qualifying residential and mixed-use development from project-level SEPA review until the City’s residential growth targets are met. After that, fallback thresholds exempt residential projects of up to 200 dwelling units citywide.

The reform reduces duplicative review while maintaining environmental protections already required under Washington’s Growth Management Act and the Shoreline Management Act, along with Seattle’s existing land use and critical areas regulations.

Continuing the Work

MBAKS testified in support of the legislation at the February 4 Land Use Committee hearing and submitted a formal letter of support.

We appreciate the Mayor and Council’s leadership and look forward to continuing our partnership with the administration to advance balanced policies that expand housing opportunities across Seattle.

Making home happen requires collaboration — and this is a strong step forward.

Contact: data@mbaks.com

February 2026 Builders Bulletin: Housing Inventory Rises

Mortgage interest rates continued to trend lower in January as housing inventory for sale increased. While this shift offers some relief for homebuyers, other indicators in the February Builders Bulletin point to continued headwinds for the housing market, including higher unemployment in Washington state and the Seattle region in December and declining builder confidence in January.

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New analysis from the National Association of Home Builders (NAHB) shows how rising home prices, mortgage rates, and property taxes are pushing more households out of the housing market—both nationally and here in Washington. Nationally, about 65% of U.S. households are already unable to afford a median-priced new home, and in Washington state, every $1,000 increase in the price of a median-priced new home prices an additional 2,070 households out of the market, including 982 households in the Seattle-metro area alone.

The NAHB “priced-out” analysis illustrates how even modest price increases can have outsized impacts in high-cost regions, while rising construction costs, fees, and regulatory requirements often amplify final home prices and further constrain housing supply. Read the full NAHB analysis and explore state and metro-level data through NAHB’s interactive affordability dashboard.

Forty MBAKS members and staff traveled to Olympia Thursday, January 29 for our Annual Hill Day where we met with elected leaders to advocate for housing. The event was timed strategically just before the first policy committee cutoff, ensuring that industry voices were heard at a pivotal time for our priority bills.

MBAKS took part in 43 meetings with legislators from King and Snohomish counties, as well as the Governor’s office and Lieutenant Governor Denny Heck, to elevate our housing priorities.

“This year marks the highest number of face-to-face meetings ever held on one of our Hill Days,” said Dylan Sluder, MBAKS’s state government affairs manager. “Many thanks to our MBAKS members who showed up, shared their expertise, and helped make the day such a success!”

Read MBAKS’s 2026 State Legislative Priorities to learn more about the bills members highlighted in conversations with state leaders.

In addition to meetings with legislators, MBAKS had the opportunity to participate in a legislative hearing on one of our priority bills to modernize and streamline state subdivision laws, SB 5633. The bill was heard by the Senate Local Government Committee on January 29.

Special thanks to MBAKS members Mark Villwock of DR Horton and Ian Faulds of Core Design for joining MBAKS General Counsel Brian Holtzclaw in testifying on behalf of this priority legislation.

Hill Day is MBAKS’s most important advocacy event of the year. It’s an opportunity for members to engage directly with Washington state legislators and share real-world perspectives on how state policies affect housing supply, affordability, and our ability to deliver homes in our communities.

Read our latest Legislative Session Update.

Each year, MBAKS members and community volunteers come together to build free wheelchair access ramps for neighbors across King and Snohomish counties. Everyone deserves safe access to their home and community.

If you or someone you know could benefit from a ramp, or if you’re a builder interested in leading a build, join us for Rampathon.

Apply for a Wheelchair Access Ramp

Rampathon provides free, custom-built ramps for individuals with disabilities or limited mobility, including:

• People living with conditions such as cerebral palsy
• Individuals recovering from accidents who can no longer safely navigate stairs
• Older adults who need safer, easier access in and out of their homes

Priority application deadline: March 31
Applications will continue to be accepted through May 1.

We often receive a large number of applications, and while we do our best to match applicants with available builder members, we cannot guarantee a ramp for every applicant due to high demand. Eligible applicants are strongly encouraged to apply by the priority deadline for the best consideration.

Apply today! 

Captain a Rampathon Team

Are you a builder interested in leading a ramp build as a Ramp Captain? Ramp Captains play a vital role by organizing volunteer teams and overseeing ramp builds that restore safety and independence for our neighbors in need.

Ramp Captain Commitment Form closes on May 31.

Fill out a Ramp Captain Commitment Form here.

When Does Rampathon Take Place?

Rampathon season typically runs from April through July, with build dates depending on the availability of volunteer builder members and recipients.

How MBAKS Members Make an Impact

MBAKS members volunteer their time and skills to design and construct ramps that make a meaningful difference in people’s lives. Through Rampathon, members help neighbors connect to their communities safely and independently.

Get Involved Year-Round

In addition to Rampathon, MBAKS hosts two other annual community stewardship events:

• Planting a Better Tomorrow in October
• Painting a Better Tomorrow in November

These programs offer additional opportunities to give back and strengthen our communities throughout the year.

If you’re interested in applying for a ramp or volunteering, we encourage you to get involved and help make home accessible for all.

Together, we’re building more than ramps. We’re building access, dignity, and community.

Any questions? Please email stewardship@mbaks.com to learn more.

Note: In a recent LinkedIn post, MBAKS Executive Director Jerry Hall shares his views on Microsoft’s proposed initiatives and strategies to address the housing shortage in Washington. Below is a modified version of his original post.

Microsoft recently published Closing Washington’s Housing Gap, a report that lays out a clear-eyed assessment of Washington’s housing supply and affordability challenges. In doing so, the report reinforces what builders and housing advocates have been saying for years: we cannot solve the housing crisis without addressing the policies and constraints that limit supply and drive up costs.

Microsoft gets several fundamental points right:

“Housing at all income levels benefits everyone and is essential to economic growth, workforce stability, equity and environmental responsibility.”

“We are not building enough housing, fast enough, at all income levels.”

“…regulations that govern development have not kept pace with realities…”

“Large portions of our state remain off-limits to housing development… inflating land prices.”

“For decades, housing has been treated as a sector that can ‘absorb’ escalating fees, taxes and regulation.”

“Well-intentioned policies… have layered new costs and complexities onto every project.”

“Every added cost ultimately shows up in rent…”

“We cannot increase supply without addressing regulatory and cost barriers.”

Much of this analysis aligns squarely with what the Master Builders Association of King and Snohomish Counties (MBAKS) has long advocated for. In particular, Microsoft’s report reinforces three priorities that are essential to meaningfully reducing Washington’s housing shortage:

Unlock more buildable land.
Restrictions such as urban growth boundaries, setback requirements, historic preservation rules, and environmental protections have steadily reduced the amount of land available for housing. When large portions of the state are effectively off-limits to development, land scarcity drives up prices and limits housing production across all price points.

Reduce the cost to build.
Homebuilding costs continue to rise due to code requirements, system development charges, impact fees, excise taxes, and land prices inflated by scarcity. Unlocking more land is necessary, but it is not sufficient on its own. Without addressing these underlying cost drivers, housing affordability will remain out of reach for many Washington residents.

Eliminate unnecessary complexity.
Lengthy and unpredictable permitting timelines, expanded public process requirements, constantly changing codes, and inconsistent interpretation of regulations all increase the time, risk, and expertise required to build a home. The more complex the process becomes, the fewer builders are able to participate—particularly when it comes to delivering entry-level and workforce housing.

Progress will require tradeoffs. There is no path forward that satisfies every stakeholder on every issue, but nothing will move forward without compromise. In his original post, MBAKS Executive Director Jerry Hall put it plainly: “If we truly want to prioritize alleviating our housing shortage, we’ll have to respect and accept some tradeoffs.”

Microsoft is right: we cannot address Washington’s housing shortage without tackling regulatory and cost barriers head-on. Many of these policies were adopted with good intentions, but they have produced unintended consequences that now limit supply and worsen affordability. If we want to ensure that everyone has a place to call home, we must be willing to revisit—and unwind—the policies that contributed to today’s shortage. That means unlocking more buildable land, implementing real cost-reduction strategies, and eliminating unnecessary regulatory complexity.

Contact: data@mbaks.com

January 2026 Builders Bulletin: Building Permits Weakened in October

U.S. Census Bureau data released recently show continued decline in building permits for the Seattle metro area in the first 10 months of 2025. The latest Builders Bulletin reports 5,208 single-family permits were issued year to date in King, Snohomish and Pierce counties as of October 2025, down 8% compared to the same period in 2024. Multifamily permits saw an even steeper drop with 7,225 permits issued, representing a 17% decrease compared to 2024. Release of this data by the Census Bureau was delayed due to last year’s federal government shutdown.

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