By MBAKS Senior Policy Analyst Allison Butcher

Housing Inventory Still Well Below Healthy Levels

Despite a modest increase in housing inventory for sale in King and Snohomish counties during September—reaching the highest levels seen all year with 1.13 and 1.26 months’ supply of inventory respectively—these figures are still well below the four-to-six month range that many industry analysts consider to be an indicator of a healthy market. The continued high demand and low supply is driving year-over-year price hikes of more than 14 percent in both counties.

The Builders’ Bulletin is intended to provide a convenient way to track housing in our market and includes information from the Northwest Multiple Listing Service, U.S. Census Bureau, Office of Financial Management and the Washington State Employment Security Department.

Download this month's report:

USEPA photo by Eric Vance

LDC Inc. went to Washington, D.C. October 24 to advocate for sensible stormwater management regulations that lead to clean water for communities instead of mountains of paperwork.

Representing builders and developers who do business in Environmental Protection Agency Region 10, Clay White, principal planner, joined nine other NAHB members from across the country to meet EPA Administrator Scott Pruitt and his top local enforcement officials.

NAHB members suggested several ways EPA could improve the process, including:

• A simplified permit process for small lots. EPA's compliance template for single-family homes in large subdivisions that could also serve as a streamlined permit: it's concise and written in "builder language" because NAHB helped develop it.
• A "find it, fix it" approach. Rather than penalize first-time violators, EPA inspectors should provide compliance assistance during site visits and allow builders to correct minor infractions so they can do it right the next time.
• Better coordination among regulators. Multiple visits from local, state and federal inspectors to the same site can result in very different observations and citations. The EPA needs to allow the states, and not themselves, to play the lead role in stormwater enforcement.
• Continued participation in EPA's "Smart Sectors" Program. Homebuilders were invited to participate this business community partnership to develop sensible regulations while protecting the environment and public health.

White was pleased at EPA's response. "It was tremendous to meet with Administrator Pruitt and the EPA team on issues that are impacting our building community. I believe that this meeting will result in positive outcomes for the builders in our region."

For stormwater management resources, visit the NAHB Stormwater Toolkit.

By Tessie LaMourea, Built Green™ Coordinator

The winners of the annual Built Green Hammer Awards were announced at the 2017 Built Green Conference! Learn more about some of these green building leaders and their projects.

Built Green Hammer Award Winners

 

This week, Denny Conner of CRD Design Build gives us a preview of the October 21–22 Remodeled Homes Tour. Watch to learn why you should participate, whether you're a remodeler or a homeowner.

Learn more about RHT

The Seattle City Council on Monday, October 2, approved an upzone to allow taller buildings in the Uptown neighborhood of Seattle, known to most as lower Queen Anne. It’s the latest area in a series of upzoning approvals, following the University District, downtown and South Lake Union, Chinatown International District, and certain spots in the Central District.

For those not in the know, upzoning is the ability for builders to create taller buildings to facilitate more homes or businesses. The lower Queen Anne upzone approval, which passed with a vote of 7-0, at its maximum will see an increase of building heights from 85 to 160 feet near South Lake Union, and from 40 to 85 feet for most of lower Queen Anne—which is twice as tall as existing buildings near Seattle Center. Much of the approved surrounding land, however, will see more modest changes.

Residents have already weighed in on the approval, some worried about an eventual "lack of daylight" or new views dominated by steel and glass. Others, however, see a sunnier side, noting that the greater Seattle area needs new, affordable housing where it can get it.

Speaking on affordability, another factor in the approval is the inclusion of Seattle’s Housing Affordability and Livability Agenda (HALA) program, a "multi-pronged strategy," according to seattle.gov, that will in this case require developers to include rent-restricted apartments in their project plans or face fees. Fees paid will go toward nonprofit efforts to build rent-restricted apartments in the lower Queen Anne area or elsewhere. The rent-restricted homes are aimed at those who make no more than 60 percent of the area’s median income—currently just over $40,000 in the City of Seattle for a single occupant, or $57,000 for a family of four.

Developers are required to dedicate 5 to 10 percent of each commercial development and 7 to 10 percent of residential projects to affordable housing or shell over $8 to $29.75 per square foot, depending on the project.

The HALA program goal, led by Councilmember Rob Johnson, is to create 50,000 new housing units in the next 10 years, including 20,000 units dedicated to lower income households. The goal for 2018 is to focus on a citywide rezone package, which will include a proposal to increase building heights and affordable housing requirements to areas that will likely include Rainier Beach, Othello, upper Queen Anne, Crown Hill, and Wallingford.

This is our final Shannon's 60, as Shannon Affholter is leaving the MBA after four great years.

By Howard Chermak, Chermak Construction

Q: I keep hearing the phrase "design-build." What does that mean?

A: There are three approaches to home remodel design. If you are creative and have a good eye for structure and color, you can use design software to create your own model. Another approach is to hire an independent designer or architect to help you think through and visualize what you want to achieve.

A third alternative is to use the services of a design-build remodeling firm. Design-build is a method used in the construction industry to deliver a project where both the design and construction are handled by a single company, instead of using the more traditional architect-and-contractor model.

This approach integrates the role of the designer and the builder to create a single point of responsibility. This helps to minimize risks and overall costs. Using the design-build model also creates a more collaborative bond between the builder and the homeowner.

Let's take a closer look at each of these approaches.

DIY design

For those who are looking to keep costs down, this sounds like a great way to go. After all, do-it-yourself design software can be relatively inexpensive or even free. A person with good design and computer skills and a sense of structure can put together a simple model that will work. The problem with these packages is that they may require a large learning curve to master the program and the inexpensive ones may not have the range of features needed to create plans that are permit-ready. And if you are moving walls or changing electrical or plumbing, you will need a permit.

Building designer or architect

This approach uses an outside professional to help you focus on a design that includes all the things you want in a remodel, and in most cases, the plans can be submitted for building permits. However, building designers/architects can be expensive and, because they are reflecting everything you think you want, the design may exceed your available budget. Building designers/architects can provide rough cost estimates but because they are generally not directly involved in the building trades, there can be construction or cost issues not taken into consideration.

Design-build firm

To get what you want and do it within your budget, many believe this is the best approach—and it is often less expensive than the building designer/architect approach. Benefits of using a design-build firm include:

• A hands-on understanding of current construction techniques and what each locale requires. Designing to permit can involve state, county, and city codes.
• Professional 3D modeling programs more tightly integrate design, structure, and building standards than do-it-yourself programs.
• Use of 3D modeling software, which provides the ability to "walk through" the design before any permitting or construction begins.
• Access to other professionals to address specific issues you may face in your project, such as structural engineering or hazardous materials issues.

 

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Howard Chermak is the president of Chermak Construction and a member of the Master Builders Association of King and Snohomish Counties. HomeWork is the group's weekly column. If you have a home improvement, remodeling, or residential homebuilding question, write to homework@mbaks.com.

FOR IMMEDIATE RELEASE
Media Contact:
Sharon Couts
Master Builders Association of King and Snohomish Counties
425.499.1723

10-Point Action Plan to Fight the Housing Affordability Crisis in the Puget Sound Region to be Announced at 2017 Housing Summit

Free event on Tuesday, October 17, to focus on housing attainability solutions

Bellevue, Wash—October 4, 2017—The Puget Sound area's housing market is in crisis. The demand for housing in our region continues to significantly outpace residential housing supply, making it difficult to purchase reasonably priced homes near job centers. In response, the Master Builders Association of King and Snohomish Counties (MBAKS) has identified a 10-point action plan to help provide attainable housing for our growing population.

"Our region's housing attainability crisis is a big problem that demands bold solutions," said Nick Harper, MBAKS senior director of strategy and policy. "We need to come together to implement a legislative agenda that helps ensure housing opportunities for everyone."

Witness live the unveiling of this bold legislative agenda at the fourth annual MBAKS Housing Summit October 17, at the Meydenbauer Center in Bellevue. The Housing Summit begins at 8:30 a.m. This free event will be emceed by Pat Cashman and will include presentations by top housing experts and area leaders. Featured speakers include:

• Clay White, Principal Planner, LDC Inc
• Elliot Eisenberg, nationally renowned economist
• Jon Nehring, Marysville Mayor
• Gail Luxenberg, executive director, Habitat for Humanity Seattle-King County
• Joe Fitzgibbon, Representative, 34th District
• Brian Bonlender, agency director, Washington State Department of Commerce
• Pat Cashman, emcee, local TV and radio personality

Space is limited. Register online at mbaks.com or by calling (425) 451-7920.

 

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About MBAKS

Founded in 1909, the Master Builders Association of King and Snohomish Counties (MBAKS) has grown to become the largest residential homebuilders association in the United States. With 2,900 member companies, the association is dedicated to membership value, housing advocacy, community service, and financial stewardship throughout the Puget Sound region.

 

Missed our 2017 Built Green Conference? Check out this exciting panel on inclusionary zoning featuring Seattle mayoral candidates Cary Moon and Jenny Durkan, Seattle City Council candidate Teresa Mosqueda, the founder of Sightline Institute Alan Durning, and moderated by Aaron Fairchild, the CEO of Green Canopy Homes.

It's no secret that our region is experiencing a sharp rise in housing prices and that many people are suffering from high housing cost burdens. Due to the affordability crisis, people are being displaced and are unable to easily access services and employment close to home. Seattle’s workers are sprawling into outlying communities, threatening the bioregional resource-base needed to maintain resilient communities. These impacts are felt more sharply by moderate- and low-income households, as well as within many neighborhoods that historically have been home to communities of color. Seattle’s real estate past contributed to the makeup of neighborhoods and zoning regulations that are causing ever-rising costs and displacement in inequitable ways. This session covered Seattle’s real estate and zoning history, how it shaped the city and region as we know it today, and how we can play a role in making our region more equitable, affordable, and livable.

 

By MBAKS Senior Policy Analyst Allison Butcher

Pierce is Only County in Seattle Metro Area to See Permit Activity Rise

Looking at the three-county Seattle Metro Area, Pierce is the only county to see permit activity rise through July 31 of this year, compared to the same period last year. The latest permit data from the U.S. Census Bureau show single family permits rose 13 percent and multifamily permits doubled in Pierce County. Meanwhile, King County saw a slight decrease in permits, with single family permits down 2 percent and multifamily permits down 4 percent. Snohomish County saw double-digit declines of 11 percent and 15 percent, respectively.

The Builders’ Bulletin is intended to provide a convenient way to track housing in our market and includes information from the Northwest Multiple Listing Service, U.S. Census Bureau, Office of Financial Management and the Washington State Employment Security Department.

Download this month's report: