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Key Findings
- The Growth Management Act is driving poor regional planning policy driving up the cost of housing, transportation and goods and services
- Building Permitting is slow and expensive
- Banning the use of Natural Gas will drive up the cost new construction and remodels
- Restrictions on background checks are driving the cost of rent
- Where passed, rent control drives up the costs of rent
- Municipal and State regulations drive up housing rental costs
- Indirect government action increasing the cost of housing
Introduction
It seems every day we hear state officials and politicians talking about the need for affordable housing, both for purchase and for rent in Washington state. Yet the laws and rules imposed by these same officials often have the opposite effect by artificially driving up the cost of housing.
Public policy – state and local laws, permitting, building restrictions and regulations – add on average $144,000 to the cost to construct a new, median priced home.
Until 1990, much of the permitting and zoning in Washington communities was set by regional authorities, who were able to respond quickly and flexibly to local housing needs.
After 1990 state lawmakers moved to centralize permitting and zoning requirements at the state level with the passage of the Growth Management Act (GMA). The result was to wipe out much of the local response to housing needs as communities were
forced to follow the state-imposed policy framework. For that reason much of the increase in housing costs can be directly attributed to the passage of the Growth Management Act.
This study reviews those state-imposed cost-drivers, identifies decisions that have imposed the highest costs, and recommends several key reforms by which the legislature and governing bodies can act to reduce the cost of housing for all Washingtonians.
