Opinion
Glimmers of Hope: The Apartment Boom
2011 started with news of a devastating $5 billion state budget shortfall and a legislative session in Olympia that went into overtime through the end of May leading to $4.5 billion in cuts.
Six months later, as the recession continues to hit the economy, state legislators—facing another $1.5 billion shortfall—have been called back to Olympia to end the year right where they started it with another round of overtime: A special legislative session to make more cuts. Governor Chris Gregoire is now recommending $2 billion in additional cuts.[pullquote]Looking to find something to be happy about in a year that offered little more than grim political choices, Cola readers point to developments from 2011 that give them hope. [/pullquote]
It’s scary out there—and as legislators look at cutting health programs, public safety officers, environmental programs, and education— there doesn’t seem to be much to be thankful for politically. Making a Sophie’s Choice between ending assistance for low-income pregnant women and assistance for at-risk youth doesn’t fall into the politics-of-hope category.
Looking to find something to be happy about in a year that seemed to offer little more than a repeating loop of grim political choices, we asked Cola readers to point us to political developments from the past year that give them hope.
Here's PubliCola alumn Dan Bertolet's response to our Thanksgiving question.
Ever since the crash of Dutch tulip mania in 1637 it has been widely recognized that economic bubbles tend to end badly. But over the past year in Seattle there's been a bubble growing that I believe is an positive exception to that rule: the apartment boom. And from the perspective of urban sustainability, that's something to be thankful for.
New apartment projects have been sprouting so fast recently it's hard to keep up. Nearly 7000 units are projected to come on line in 2013 in Seattle and Bellevue. In Seattle's Capitol Hill neighborhood alone construction is well under way on four large mid-rise apartments that will provide close to 600 new units, and a dozen or more projects are in various stages of the pipeline
Factors driving the apartment boom include the lull in construction caused by the real estate bust, a relatively strong local job market, and demand from Gen Y kids and others who can't afford buy in today's economy. Multifamily housing is pretty much the only real estate development market that has a pulse currently, which has led to somewhat of a feeding frenzy.
Why shouldn't we worry about this particular bubble? True, an overproduction of apartments can be expected to dish out some economic pain to building owners, financiers, and developers who get the timing wrong. But that won't change the fact that we'll end up with lots of new high-density urban housing that will be on the ground for decades. And that's some powerful good mojo for a sustainable city and region.
Dense urban infill housing reduces development pressure on farms on forests, leverages existing infrastructure investments, spurns economic development, improves public health, reduces stormwater runoff pollution, energy use, and greenhouse gas emissions, and helps create the kind of livable, walkable communities that the market increasingly demands. Furthermore, any oversupply will put downward pressure on housing prices, helping to address affordability.
So no, I'm not wringing my hands over a potential apartment bubble. When I look up and see another construction crane on the skyline it gives me hope.
More to be thankful for here.
Six months later, as the recession continues to hit the economy, state legislators—facing another $1.5 billion shortfall—have been called back to Olympia to end the year right where they started it with another round of overtime: A special legislative session to make more cuts. Governor Chris Gregoire is now recommending $2 billion in additional cuts.[pullquote]Looking to find something to be happy about in a year that offered little more than grim political choices, Cola readers point to developments from 2011 that give them hope. [/pullquote]
It’s scary out there—and as legislators look at cutting health programs, public safety officers, environmental programs, and education— there doesn’t seem to be much to be thankful for politically. Making a Sophie’s Choice between ending assistance for low-income pregnant women and assistance for at-risk youth doesn’t fall into the politics-of-hope category.
Looking to find something to be happy about in a year that seemed to offer little more than a repeating loop of grim political choices, we asked Cola readers to point us to political developments from the past year that give them hope.
Here's PubliCola alumn Dan Bertolet's response to our Thanksgiving question.
Ever since the crash of Dutch tulip mania in 1637 it has been widely recognized that economic bubbles tend to end badly. But over the past year in Seattle there's been a bubble growing that I believe is an positive exception to that rule: the apartment boom. And from the perspective of urban sustainability, that's something to be thankful for.
New apartment projects have been sprouting so fast recently it's hard to keep up. Nearly 7000 units are projected to come on line in 2013 in Seattle and Bellevue. In Seattle's Capitol Hill neighborhood alone construction is well under way on four large mid-rise apartments that will provide close to 600 new units, and a dozen or more projects are in various stages of the pipeline
Factors driving the apartment boom include the lull in construction caused by the real estate bust, a relatively strong local job market, and demand from Gen Y kids and others who can't afford buy in today's economy. Multifamily housing is pretty much the only real estate development market that has a pulse currently, which has led to somewhat of a feeding frenzy.
Why shouldn't we worry about this particular bubble? True, an overproduction of apartments can be expected to dish out some economic pain to building owners, financiers, and developers who get the timing wrong. But that won't change the fact that we'll end up with lots of new high-density urban housing that will be on the ground for decades. And that's some powerful good mojo for a sustainable city and region.
Dense urban infill housing reduces development pressure on farms on forests, leverages existing infrastructure investments, spurns economic development, improves public health, reduces stormwater runoff pollution, energy use, and greenhouse gas emissions, and helps create the kind of livable, walkable communities that the market increasingly demands. Furthermore, any oversupply will put downward pressure on housing prices, helping to address affordability.
So no, I'm not wringing my hands over a potential apartment bubble. When I look up and see another construction crane on the skyline it gives me hope.
More to be thankful for here.
