Reports Confirm Home Building’s Significant Contributions to Washington’s Economy

Two newly released reports from the National Association of Home Builders (NAHB), commissioned by the Building Industry Association of Washington (BIAW), highlight the substantial economic benefits generated by homebuilding across Washington state.

Together, the reports show that residential construction plays a major role in supporting jobs, generating income for residents, and providing critical revenue for state and local governments.

Economic Benefits During Construction

The first report examines the economic activity created during the year homes are built, including job creation, wages, and tax revenue. Using housing production data from the 12-month period ending April 2025 and based on estimates from the Washington State Office of Financial Management (OFM), NAHB analyzed the direct and indirect impacts of new residential construction.

These impacts include not only construction-related employment and income, but also the ripple effects as workers and businesses spend earnings throughout the local economy.

For single-family homes, the construction of 14,348 homes generated an estimated one-year local impact of:

• $5.16 billion in income for Washington residents
• $1.25 billion in state and local taxes and other public revenue
• 44,686 jobs statewide
  

For multifamily homes, construction of 32,368 homes generated an estimated:

• $10.81 billion in income for Washington residents
• $2.18 billion in state and local taxes and other public revenue
• 92,916 jobs statewide

These figures reflect both direct construction activity and indirect economic activity driven by household and business spending.

Ongoing, Annual Economic Impacts

The reports also highlight the recurring annual benefits that continue once new homes are occupied. These impacts reflect the economic activity generated as residents live, work, and pay taxes in their communities

The annual recurring impacts of the newly built homes include:

Single-family homes (14,348 units):

• $978 million in income for Washington residents
• $355 million in state and local taxes and revenue
• 10,041 jobs

Multifamily homes (32,368 units):

• $2.17 billion in income for Washington residents
• $702 million in state and local taxes and revenue
• 22,345 jobs

These benefits continue year after year, underscoring how housing availability supports long-term economic vitality across the state.

Comparing Public Costs and Public Benefits

At a more practical level, NAHB’s findings show that every 100 homes built in Washington generate approximately $34 million in income, $7 million in public revenue, and support nearly 300 jobs—illustrating why residential development produces significant returns for both local economies and public budgets.

A separate NAHB analysis compared the public costs of residential development—such as infrastructure, services, and capital investment—to the revenue generated for state and local governments.

The findings show that, from a public finance perspective, residential development more than pays for itself within the first year.

Over a 15-year period, newly built single-family and multifamily homes combined are projected to generate:

• $18.76 billion in cumulative state and local revenue
• Compared to $9.42 billion in total public costs

Over that same period, the homes are expected to generate approximately $9.34 billion in net revenue, effectively doubling the public investment in infrastructure such as roads, schools, and essential services.

A Broad Benefit for Washington Communities

Taken together, the reports reinforce the far-reaching economic value of homebuilding in our state. Residential construction supports jobs, strengthens local economies, and provides a sustainable source of public revenue that helps fund community priorities across the state.

Resources

• The Economic Impact of Home Building in Washington: Income, Jobs and Taxes Generated — NAHB (November 2025)
• The Economic Impact of Home Building in Washington: Comparing Costs to Revenue for State and Local Governments — NAHB (November 2025)
• Homebuilders Offer Relief for State’s Budget Woes — BIAW (December 1, 2025)

The 2025 Built Green Awards and Holiday Party was an opportunity for those in green building to come together, celebrate 25 years of the Built Green program, acknowledge leaders in the industry, and enjoy one another’s company in a festive and comfortable setting. The event was made possible thanks to sponsorship from King County GreenTools

Dwell Development’s Anthony Maschmedt and Tadashi Shiga, Vice President, Land Division at Realogics Sotheby’s emceed the party to great success, recognizing individuals who are icons in the green building space and providing plenty of entertainment.

Jerry Hall, Executive Director of the Master Builders Association of King and Snohomish Counties, said “One of my favorite things about our community of Built Green members is an overwhelming sense of optimism and hope for the future. Among this community, it’s as if there’s no challenge that is too difficult to overcome. The determination and enthusiasm to improve our world is palpable within Built Green. It’s inspiring!”

The Built Green Awards honor companies who are raising the bar when it comes to building green homes; leaders in innovation, sustainability, quality and commitment. One individual who is a vanguard in furthering the mission of green home building is also recognized.

The 2025 winners:

• Custom Builder: Targa Homes
• Small Production Builder: nwBuilt
• Large Production Builder: Tri Pointe Homes
• Medium Multi-Family Builder: Blindheim Company
• Large Multi-Family Builder: Kōz Development
• Built Green Pioneer: Cybil Tribie
• Project of the Year: Green Canopy NODE, for the final phase of the Grow Community on Bainbridge Island

Congratulations to all of the Built Green Awards winners! It was a delight to look back at how the program has evolved over 25 years, and look to the future inspired and hopeful about making progress toward our collective goal of healthy, resilient homes and communities for all.

The 2026 Washington State legislative session kicks off January 12, and it will be fast, fiscal, and highly consequential for housing. As a 60-day supplemental budget session, lawmakers enter Olympia facing mounting housing affordability pressures, limited time, and a constrained budget.

Governor Ferguson’s proposed 2026 supplemental budget aims to address an estimated $2.3 billion shortfall in the 2025-27 biennium. The proposal relies on spending reductions, tapping the state’s rainy-day reserve, and reallocating existing funds, rather than new taxes in the supplemental.

The shortfall reflects slower revenue growth, driven by weaker real estate activity and employment, alongside rising costs to maintain existing services. As a result, budget negotiations are expected to focus on fiscal prioritization and cost containment, with renewed discussion of potential revenue options. This includes proposals such as a payroll expense tax on large employers, changes to property tax growth limits, and renewed discussion of a high-income or “millionaire” tax as lawmakers weigh options to address the budget gap.

Despite these constraints, housing remains a top priority. Lawmakers broadly agree that we cannot address affordability without building more homes—but debate continues over how to do that.

Given budget realities, the most viable housing policies will be those that speed delivery, reduce risk, and avoid adding new costs. That is exactly where Master Builders Association of King and Snohomish Counties (MBAKS) is focused.

MBAKS 2026 Legislative Priorities: A Practical Path to More Homes

In 2026, MBAKS is advancing a focused, solutions-oriented agenda aimed at reducing delays, lowering costs, and expanding housing opportunities across Washington. Our priorities reflect what builders experience every day—and what moves the needle on affordability.

Subdivision Reform & Streamlining

Washington’s subdivision laws are outdated and unnecessarily complex. MBAKS supports modernizing subdivision statutes by clarifying pre-application requirements, requiring administrative approval of plats within urban growth areas, and encouraging concurrent review of plats and construction plans. These changes will shorten timelines, reduce risk, free up local staff capacity, and expand infill housing opportunities (HB 1818; SB 5633).

Clear & Objective Development Standards

Subjective regulations create uncertainty, delays, and higher costs. MBAKS supports legislation to ensure local development regulations are clear, objective, and predictable, leading to faster and more reliable permit approvals (SB 5613).

Self-Certification & Review Cycles

Redundant reviews drive up costs without improving outcomes. MBAKS supports allowing licensed professionals to self-certify code compliance and limiting projects to three review cycles when standards are met, preventing endless delays (SB 5729).

Building Code Pause

Constant code changes add cost and uncertainty. MBAKS supports rebalancing the Building Code Council’s membership and pausing frequent code updates to stabilize construction costs and improve affordability.

Rural Accessory Dwelling Units (ADUs)

Rural communities also need housing solutions. Streamlining Accessory Dwelling Units (ADU) permitting in rural areas can support multigenerational living, expand housing choices, and strengthen rural communities (HB 1010).

Oppose Increases to Fees, Taxes, & Housing Costs

At a time of record affordability challenges, Washington cannot tax or fee its way to more housing. MBAKS will oppose policies that increase housing costs through higher fees or taxes and continue advocating for solutions that make homeownership more attainable.

The Bottom Line

The 2026 session will test whether Washington is serious about addressing housing affordability. With limited time and tight budgets, success will hinge on cutting red tape, restoring predictability, and resisting policies that drive costs higher. MBAKS will remain at the table throughout session, advancing practical reforms that help builders deliver the homes Washington urgently needs.

In 2025, MBAKS built momentum—together. From policy wins and strong member engagement to measurable returns and meaningful community impact, this year reinforced the power of our collective voice and commitment to making home happen across King and Snohomish counties.

Advocacy That Delivers
MBAKS continued to push for smart housing policy, supporting reforms that expand supply and reduce barriers to building. Highlights include advocacy around HB 1096, ongoing implementation of middle housing and ADU/DADU reforms, and the Affordable Housing Council’s endorsement of 89 pro-housing candidates across 34 jurisdictions.

Community Impact in Action
Members gave back in tangible ways—constructing 27 access ramps across 15 cities through Rampathon, planting 64 new trees in Shoreline, and celebrating 25 years of Built Green, which has certified more than 48,000 units statewide.

Engagement That Strengthens Belonging
Member retention remained strong at 88% year-to-date, outperforming industry benchmarks. Builder members who actively engage with MBAKS programs, events, and councils reached a 94% retention rate—proof that connection matters.

Value You Can Measure
Through GRIP and other benefits, MBAKS delivered real financial returns, with the average GRIP refund totaling $9,459.

Here’s to a great year, and to carrying our shared momentum forward in 2026!

Visit MBAKS Connect for our full analysis of Seattle’s updated Comprehensive Plan.

On Tuesday, Dec. 16, the Seattle City Council adopted its updated Comprehensive Plan, a key requirement of the state’s Growth Management Act (GMA) that sets the city’s 20-year vision. The plan will guide local decisions related to housing, land use, and other priorities to align with Seattle’s long-term goals and community values.

A key update in the Comprehensive Plan is its alignment with House Bill 1110, enacted by the State Legislature more than two years ago. HB 1110 requires local jurisdictions to allow for a broader spectrum of housing choices, including duplexes, townhomes, stacked flats, courtyard apartments, and cottage housing. The law allows for a minimum of four housing units on all residential lots, and at least six on all residential lots within a quarter mile of major transit. By reducing barriers to housing production near jobs and transit, HB 1110 advances the core principles of GMA while maintaining protections for environmentally sensitive and open spaces.

“Seattle’s adoption of its updated Comprehensive Plan means that the city has taken a major step forward in addressing the housing shortage placing homes out of reach for so many,” said Jerry Hall, executive director of the Master Builders Association of King and Snohomish Counties (MBAKS). “We commend Seattle for lowering many barriers to housing choices in the city even as we look ahead to persistent challenges that still exist in the work to make housing more attainable for all. MBAKS will continue to focus on offering our expertise regarding how best to facilitate more housing that is attainable for current residents, newcomers, and future generations.”

Reducing Barriers to Housing in Seattle’s Updated Comprehensive Plan

Seattle’s updated Comprehensive Plan removes several long-standing obstacles to housing production and allows for more efficient use of the city’s buildable land. Notably, the plan:

• Invests in accessory dwelling units as a popular housing option.
• Improves use of limited buildable land for housing.
• Addresses the need for housing and trees. 

Persistent Barriers to Housing Options in Seattle’s Updated Comprehensive Plan

Unfortunately, Seattle’s Comprehensive Plan preserves barriers that will continue to drive up the cost of housing for both renters and homeowners.

Under the plan, Seattle’s Department of Construction & Inspections would retain broad subjective discretion when reviewing new housing proposals related to tree canopy management. MBAKS supports the shared goal of maintaining a healthy urban tree canopy but strongly prefers a clearly defined, objective policy framework that provides transparency, predictability, and timely review for applicants.

The plan also relies on arbitrary minimum tree-per-square foot requirements, which further restrict already limited buildable land. These requirements increase the single greatest cost barrier for new housing: the price of land without demonstratable environmental benefit. Homebuilders are already subject to strict regulations that oversee new construction so that our water, air, and soil are appropriately protected. Homebuilders also routinely plant more trees during construction than are removed.

MBAKS members demonstrate their commitment to environmental stewardship by partnering with local jurisdictions through the association’s Planting a Better Tomorrow event.

“While other barriers to housing remain, MBAKS will continue to advocate for policies and partnerships needed to expand Seattle’s housing supply, ensuring everyone has a place to call home,” said Logan Schmidt, MBAKS’s Seattle Government Affairs Manager.

Visit MBAKS Connect for our full analysis of Seattle’s updated Comprehensive Plan.

As communities across Western Washington begin to assess damage from recent flooding, the Master Builders Association of King and Snohomish Counites (MBAKS) is offering information and resources to help homeowners navigate the recovery and rebuilding process safely and effectively. In addition to MBAKS, resources are available from the National Association of Home Builders (NAHB) on rebuilding and repairing your home after flooding, offering tips on Safety and Cleaning and Avoiding Scams. See also resources from local jurisdictions such as the King County Flood Control District and King County Emergency News. Additional information regarding how to protect your health and safety after a flood may also be found on the public health websites for King County and Snohomish County. Above all, MBAKS encourages property owners to be mindful of the local guidance shared by city, county and state officials as our region works to rebuild safely following the recent flooding.

MBAKS recommends the following steps for homeowners:

• Contact Your Insurance Company: Review your homeowners’ insurance policy and contact your insurance company as soon as possible to report damages.
  
• Stay Safe During Damage Assessments. Structures may have lost stability due to flooding. Take extreme caution as you assess the damage to your home.
• Create a Recovery Folder. Homeowners should take time to organize key contacts, communications, or forms into virtual or physical folders to keep the information centralized and easily accessible. 
• Work with a Professional Homebuilder. Local builders and specialty contractors understand King and Snohomish County codes, permitting requirements, and best practices for repairing flood-damaged homes.
  
• Prepare Homes for the Future. When planning repairs, ask residential building professionals about strategies to improve your home’s resilience to future extreme weather events.

Resource Links:

NAHB: Safety and Cleaning and Avoiding Scams
King County: King County Flood Control District  |  King County Emergency News  |  King County Public Health
Snohomish County: Snohomish County Health Department

MBAKS is the largest local homebuilding association in the country. We believe everyone deserves a place to call home, and our purpose is to make home happen. That includes helping our communities recover from severe weather by sharing the technical expertise of our members. Our members include trusted builders, remodelers, and housing professionals who bring expertise, craftmanship, and problem-solving to every rebuilding effort. Whether you partner with an MBAKS member or not as you work to rebuild following flood damage, we encourage you to keep the above best practices in mind both for rebuilding now and planning ahead for future extreme weather events.

On December 11, 2025, the U.S. House of Representatives passed the National Association of Home Builders (NAHB)-supported Promoting Efficient Review for Modern Infrastructure Today (PERMIT) Act. The legislation focuses on reforming federal permitting requirements under the Clean Water Act with the goal of reducing delays and uncertainty that can slow housing and infrastructure projects.

The vote moves the bill to the U.S. Senate, where lawmakers will continue debating how to balance environmental protections with the need to build homes and infrastructure more efficiently.

What the PERMIT Act Does

The PERMIT Act is intended to streamline environmental permitting and reduce regulatory uncertainty that builders and infrastructure providers say contributes to rising costs and project delays. Key provisions of the bill include:

• Clarifying Clean Water Act jurisdiction by redefining “waters of the United States” and codifying exclusions for features such as waste treatment systems, ephemeral streams, and groundwater.

• Extending and improving nationwide permits to provide longer, more predictable authorization timelines.

• Establishing limits on judicial review timelines to reduce prolonged litigation and project delays.

• Addressing backlogs and inefficiencies in the issuance of jurisdictional determinations.

• Restoring a clearer pathway for states to assume control of their own wetlands permitting programs.

Lawmakers also adopted an NAHB-supported amendment on the House floor that would reduce compensatory mitigation costs through targeted, commonsense reforms. The amendment is intended to maintain environmental protections while improving predictability and supporting economic growth.

Supporters argue these reforms will create regulatory certainty, lower development costs, and help accelerate housing and infrastructure production at a time of acute national need.

What Happens Next

With House passage secured, the PERMIT Act now moves to the U.S. Senate, where its future remains uncertain. The legislation is expected to be part of a broader debate over federal permitting reform, infrastructure delivery, and housing affordability. For homebuilders and policymakers focused on reducing costs and delays, the outcome could have meaningful implications for how quickly new housing and infrastructure projects can move from proposal to construction.

For more details, view the NAHB blog or contact Dylan Sluder, State Government Affairs Manager, at MBAKS via 425.451.7920 for additional information.

Contact: data@mbaks.com

November Mortgage Rates Fall to Lowest Level in Over a Year

Mortgage rates continued to trend lower in November, with the 30-year fixed-rate mortgage (FRM) averaging 6.24% — the lowest level in over a year — while the 15-year averaged 5.51%. Rates remain down compared to a year ago, and the month also saw a slight uptick in the 10-year Treasury yield and ongoing market uncertainty reflected in the wider mortgage–Treasury spread.

DOWNLOAD THE REPORT

On November 19, Snohomish County Superior Court Judge Jennifer Langbehn issued a final decision in a lawsuit challenging Initiative 24-03. The lawsuit was brought by the Master Builders Association of King and Snohomish Counties, together with several of its homebuilder members and other businesses operating in Everett and Snohomish County. The initiative, sponsored by Standing for Nature, was approved by Everett voters in the November 2024 general election. Consequently, the City of Everett was the named defendant in the lawsuit. However, the city agreed with MBAKS that Initiative 24-03 exceeded local initiative powers and “undermines all of the efforts of the City to protect the environment without shutting down all development and industry within the City.”

Judge Langbehn, in her ruling on MBAKS’s motion to declare Initiative 24-03 invalid, agreed with MBAKS and the city. She confirmed that under state law “[t]his initiative’s provisions are directly contrary to the water rights system established by the State and is outside the scope of the City’s authority.” Judge Langbehn therefore concluded that “Plaintiffs are entitled to a declaratory judgment that Initiative 24-03 exceeds the scope of the local initiative power and is therefore invalid.”

This is an important win for housing, the environment, and the community. “As a trade association with members proudly building homes in the City of Everett, we are grateful that the Judge Langbehn affirmed the position we fought for with city officials and local businesses that Initiative 24-03 is invalid,” said Jerry Hall, executive director of MBAKS. “Homebuilding must already adhere to strict local and state regulations that protect our water, air, and land. We know that environmental protection and housing are not competing goals, they depend on each other. The invalidation of Initiative 24-03 allows this existing framework to continue working as intended. We filed suit because it was necessary to protect the public’s best interest and ensure that our shared values of environmental stewardship are upheld as new homes are built and existing homes are remodeled for current residents, newcomers, and future generations.”

Under the laws governing local initiatives, City of Everett officials acted consistently with their obligation to put Initiative 24.03 before voters once the required number of signatures was verified. State law does not permit the city to consider whether the content of Initiative 24-03 complies with local initiative powers when determining ballot eligibility. As a result, the initiative appeared on the November 2024 ballot in Everett. Following the election, MBAKS asked the Snohomish County Superior Court to invalidate the unlawful initiative.  

On Saturday, November 15, more than 50 volunteers came together for Painting a Better Tomorrow, an annual one-day service event hosted by the Master Builders Association of King and Snohomish Counties (MBAKS). This year’s project supported Domestic Violence Services of Snohomish County (DVS), the county’s only provider of emergency shelter and comprehensive, confidential services for survivors of domestic abuse.

Together, we made a tremendous impact.

A Fresh Coat for a Critical Community Space

With enthusiasm, teamwork, and a whole lot of paint, volunteers transformed 15,000 square feet of interior space at DVS. Hallways, common areas, offices, and program rooms all received much-needed refreshes—areas that see constant use but are often last in line for updates due to limited budgets and high operational demands.

Painting may seem simple, but for organizations like DVS, it represents hope, safety, and dignity. A bright, clean environment helps create a welcoming space for survivors taking steps toward healing and stability.

Fifty Volunteers, One Shared Mission

What makes Painting a Better Tomorrow special is the spirit of community it brings. MBAKS builder members and community volunteers worked side by side—some attending for the first time, others returning as annual supporters.

Our volunteer Team Leaders opened the morning with tutorials and safety guidance, and crews spread out across the facility to tackle the full project scope. Thanks to their dedication, every room received a fresh, professional finish.

Why This Work Matters

For nonprofits like DVS, painting is often one of the first expenses cut from an operational budget. Yet the condition of a physical space deeply affects the experience of the individuals who rely on it. A fresh coat of paint brings new life and warmth to a building, offering a sense of comfort to those walking through its doors.

By volunteering their time and skill, participants helped create a more uplifting environment for survivors and their families.

Kym Castaneda, Director of Shelter Operations at DVS, shared how meaningful this project is: “It really shows those we serve that there is a community around them that cares, and this is how they show it. This is amazing. You have no idea—this means so much to us.”

Thank You to Our Volunteers and Partners

This event would not be possible without the generosity of our volunteers who show up year after year, and the 67 gallons of donated paint from Sherwin-Williams. Your commitment strengthens our region and ensures essential organizations like DVS feel supported by the broader community.

Looking Ahead

Painting a Better Tomorrow has been an MBAKS tradition since 2003, refreshing hundreds of thousands of square feet for nonprofits across King and Snohomish counties. We’re already looking forward to next year’s project and the continued opportunity to serve local organizations in meaningful, hands-on ways through our community stewardship programs.

Thank you again to everyone who joined us to help paint a brighter, safer tomorrow.

If you’d like to get involved in future volunteer opportunities, please contact stewardship@mbaks.com.com.