Press Release: Housing Needs Assessment Report Reveals Slow Progress, Highlights the Critical Need for New Affordable Housing Revenue, Says Housing Development Consortium
SEATTLE, WA — As our region continues to grapple with a housing shortage, King County released yesterday an update to the countywide Housing Needs Assessment. This report, an important tool for policymakers, planners, and the public to make sense of our housing system, underscores the critical need for increased funding for affordable housing in King County.
The Housing Needs Assessment shows King County’s progress towards eliminating the cost burden for low-income households by 2044. To be clear: the county has made measurable gains in increasing affordable housing. The report underscores that progress is uneven and insufficient—overall, we are still not building enough homes to meet the growing need. These challenges are compounded by federal uncertainty, funding cuts, rising development and operational costs, and a sharp decline in new housing applications.
“Though our housing crisis remains dire, our community has made important strides to increase affordability,” said Patience Malaba, Executive Director of the Housing Development Consortium. “This housing needs assessment makes clear that while King County is making meaningful progress, the pace simply isn’t keeping up with the scale of our housing need. King County has done hard things before — we can do it again. We have the tools, the partners, and the local commitment; it’s time to double down on investments and policy reforms that will accelerate production, preserve affordability, and protect the progress we’ve made.”
As the report highlights:
- We are making progress on affordable housing—but far too slow and not enough. In 2019, King County needed to add 195,000 homes affordable at or below 80% of Area Median Income (AMI) by 2044 to eliminate housing cost burdens. Because of significant public and private investments, that number has declined to 178,000 as of 2024. However, at the current pace, the county will reach only one-third of its target by 2044.
- The deepest housing needs are at the lowest income levels. Of the 178,000 affordable homes needed by 2044, 166,000 must be affordable to households earning below 50% of AMI. The county is facing a housing capital and operations funding gap of $3.96 billion annually, on top of the $1.5 billion in existing annual public subsidy. The report also highlights the importance of scaling up operational funding alongside capital investments in new affordable housing.
- Housing supply growth has slowed rent increases, but warning signs are emerging. Recent strong growth in housing supply has helped temper rent growth, particularly for smaller apartments. However, plummeting housing starts now signal trouble ahead for renters and homebuyers alike.
- Vacancies in parts of the affordable housing stock—especially studios and one‑bedrooms affordable to households earning around 60% of AMI—have recently drawn public and media attention. This is the result of an overconcentration of one type of home at a narrow range of affordability, where restricted rents have converged with market rate rents for similar housing. Meanwhile, demand for family‑sized and deeply affordable homes across the region remains critical. This is not a signal to pull back investment, but to course-correct toward the types of housing the region most needs.
- Since 2022, multifamily market rents have grown 6%, below inflation and median income growth, but most new supply consists of small homes, leaving families overcrowded and cost-burdened. Over 90% of the new homes built in King County between 2014 and 2023 were studios and 1-bedroom homes.
- Permit applications for new homes have dropped sharply since 2022, threatening long-term housing production and affordability.
- Geographic disparities persist: Seattle has the largest supply of income-restricted homes but remains unaffordable for many. East King County has the fewest, with over half of households earning above 120% AMI. Nearly 60% of renters in South King County are cost-burdened—far higher than the county average.
“King County has faced many challenges in increasing the supply of affordable homes, and there is no denying that the costs of stabilizing and expanding the housing supply are significant, but we are making so much progress and we cannot afford to let up”, said Susan Boyd, CEO of Bellwether Housing and HDC Board Member
About the Housing Development Consortium of Seattle-King County:
The Housing Development Consortium (HDC) has worked since 1988 to make it easier to create and preserve affordable housing across King County and Washington State. As an association over 215 strong, HDC serves, convenes, and advocates on behalf of mission-driven organizations and businesses that comprise our membership. HDC works collectively toward our shared vision that all people throughout King County can live with dignity in safe, healthy, and affordable homes. https://www.housingconsortium.org
