Washington Isn’t Permitting Enough Housing
Washington needs to build 50,000 homes every year to meet demand — but permitting activity has fallen below that target, worsening the state’s housing shortage.
Tracking the gap between the homes Washingont needs and the homes being permitted.
In 2023, Washington’s economists estimated the state must build 50,000 homes annually for the next 20 years to keep pace with demand. This clock tracks the cumulative gap between housing units permitted and the number needed to stay on that trajectory toward 1 million homes by 2044.
A growing gap means the state is losing ground. State leaders have warned that falling short will worsen the state's housing affordability crisis.
Annual Housing Permit Trends in Washington State
Housing permits recovered to near pre-2008 levels and peaked at 56,000 units in 2021 before steadily declining below the state’s 50,000-unit annual target. Industry participants cited rising construction costs tied to the stricter 2018 energy code, implemented in February 2021, as a major factor reducing project feasibility, especially for entry-level housing.
Trends in Per Capita Residential Permitting
Permits per capita have declined since Washington State passed the Growth Management Act in 1990. Aside from 2021, where housing starts were spurred by the historically low pandemic-era interest rates, the state has failed to reach its per capita housing production levels prior to the financial crisis.