In a pivotal meeting held by the Senate Housing Committee on January 15, 2025, discussions centered around the urgent need for housing development in Washington, particularly in high-demand areas like Redmond. As the committee members gathered, the atmosphere was charged with a sense of urgency, reflecting the pressing housing crisis that looms over the state.

One key speaker emphasized the critical situation, stating, "If we are seeing a huge drop-off now, that's where we're going to be ending up." This stark warning highlighted the necessity of initiating housing projects immediately to avoid a future where no new developments are underway. The speaker pointed out that without proactive measures, the state could find itself in a dire situation in just five to seven years, with no new housing options available.

The focus then shifted to Redmond, a city recognized for its high rental prices and accessibility to light rail stations. The speaker noted that Redmond serves as a benchmark for successful construction projects, stating, "If you can build it in Redmond...odds are you can't build it anywhere." This assertion underscores the challenges faced by developers in the region, particularly in light of new inclusionary zoning rules that require a percentage of affordable units in new developments.

To illustrate the financial viability of new projects, the committee examined a hypothetical 100-unit development in Redmond. The analysis included insights from Fannie Mae underwriting experts, confirming that the projected return on cost for such a project would be around 4.1%. This figure, while modest, reflects the potential for sustainable development in a market that is increasingly strained.

As the meeting progressed, it became clear that the committee's discussions were not just about numbers and projections; they were about the future of communities and the need for accessible housing. The urgency of the situation resonated throughout the room, leaving attendees with a shared understanding that immediate action is essential to address the housing challenges facing Washington. The meeting concluded with a commitment to explore innovative solutions and expedite the development process, ensuring that the state can meet the growing demand for housing in the years to come.