Seattle Real Estate News

Seattle has lost a significant amount of affordable housing, particularly in the 2010s, leading to a dramatic rise in homelessness. In 2014 - the transformation of Panaroma House, an 18-story apartment building on First Hill, when new owners evicted tenants, renovated the building, and double rents - part of citywide trend where older, once affordable apartments became unaffordable. 

Key Factors Behind the Crisis:

1.  Rent Increases in Older Buildings: Many of Seattle’s affordable units were older buildings with lower rents due to outdated conditions. However, landlords either renovated and raised prices or increased rents without major upgrades.  
2.  Housing Shortage & Tech Boom: Seattle's population surged in the 2010s, driven by high-paying tech jobs. However, housing construction lagged, leading to a bidding war for available units.
3.  Impact on Low-Income Renters: Those on fixed incomes or earning minimum wage struggled to keep up with rent hikes. Many were forced into overcrowded housing or onto the streets when they couldn’t pay. 
4.  Homelessness Doubled: The lack of affordable housing contributed to homelessness rising from 2,800 people in 2010 to 5,600 in 2020. By 2024, over 16,800 people were homeless in King County.

Attempts to Address the Issue:

A surge in apartment construction in the 2020s temporarily slowed rent increases, improving affordability for middle-income renters. However, construction costs, high interest rates, and lower housing permits in recent years could lead to renewed housing shortages and rent hikes, putting more people at risk of homelessness.

Without continued housing development, Seattle could repeat past trends, forcing its most vulnerable residents out of the market.