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eattle's single-family zoning is undergoing a significant shift, allowing developers to build up to four homes on city lots that were previously dominated by individual houses. This change is the result of a state law aimed at adding smaller and more affordable homes to areas reserved for pricey single-family homes. However, despite the "yes in my backyard" ambitions behind this move, the real estate market remains sluggish due to high borrowing costs and expensive construction materials.

    Developers are cautious about taking on new projects, with many waiting for conditions to improve before investing in new developments. The city-commissioned analysis found that middle-housing options like those allowed by the new zoning can lead to 69,000 new homes in the next 20 years, but given recent building trends, only about 36,000 are likely.

    The new zoning rules will allow for a broader array of homes in Seattle's neighborhood residential zones, including duplexes, townhomes, and clusters of smaller detached homes. However, other factors such as construction costs, high interest rates, and uncertainty about tariffs and economic conditions make it challenging to drive a market rebound.

    Developers are being selective about the projects they take on, and many are "kicking the tires" on possible projects while others "throw up their hands." Some builders are scooping up sites where they hope to build under the new rules, but even with the zoning changes, the market may be slow today. Local and state lawmakers continue to strip away regulations and promise to speed up permitting for new housing.

    The changes will allow more midsized homes, which homebuyers are seeking, but novel forms of housing like small apartment or condo buildings are less likely without broader changes. The pace of change is expected to be similar to what Seattleites have seen over the last 15 years, with new homes taking more than a year to design, permit, and build.