New Delhi: As Washington state grapples with a deepening housing crunch, two of its biggest corporate residents, Microsoft and Amazon, have made a rare joint intervention in the policy debate. In an op-ed published in The Seattle Times on Friday, senior executives from the tech giants lay out a blunt diagnosis of why housing in the Puget Sound region has become prohibitively expensive, and offered a set of specific fixes they believe lawmakers must adopt.
Written by Brad Smith, vice chairman and president of Microsoft, and David Zapolsky, Amazon’s chief global affairs and legal officer, the op-ed focused on Puget Sound, a coastal region in the Pacific Northwest where the city of Seattle is located.
“Each year over the past decade, affordability has declined, commutes have lengthened and our region’s ability to attract and retain talent has been put at greater risk,” wrote the authors.
Despite both companies committing $1.6 billion to “preserve and build more than 26,000 affordable homes”, the region still faces a housing emergency. The authors narrowed down the problem to inadequate supply, estimating that 1 million additional housing units would be required over the next 20 years.
There are several roadblocks to building affordable housing in the state. A potent mix of limited land, burdensome regulations, and a rise in construction costs has made it too expensive and risky for developers to undertake projects.
According to a report by the US Department of Housing and Urban Development, the number of individuals experiencing chronic homelessness increased by 56 per cent in Washington between 2023 and 2024.
The local government in Seattle also tracks a ‘housing cost burdens rate’, the percentage of income spent on housing. A household is severely cost burdened if they spend more than 50 per cent of their income on housing.
There are several areas in the city where the rate is 100 per cent, including South Beacon, Highland Park, Columbia City, and Riverview.
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Tackling the crisis
The senior executives suggested a simple test to legislators to solve the problem: if any policy makes housing more expensive or results in long, drawn-out construction timelines, alternatives should be considered. Policies should be rooted in the current housing market, as against what might work in the future.
They lauded five initiatives that are aimed at tackling the crisis. The first was a $225 million investment proposal for the Housing Trust Fund, created by governments to build, rehabilitate, and preserve affordable housing.
The second was a legislation to allow residential construction in zones primarily meant for commercial use. The authors specifically mentioned House and Senate representatives who were putting their weight behind these proposals.
Another policy which received support was shifting the timing of impact fee payments, which are developer-paid charges to the local government for infrastructure improvements. Since new property development draws in new residents, this puts a strain on existing infrastructure and services.
By delaying the timeline of the impact fee collection, developers are more incentivised to build new construction and plan project finances more efficiently.
Finally, the authors commended efforts to streamline the approval for home designs and modular constructions. A review of the State Environmental Policy Act to “accelerate transit-oriented development” also received a nod of approval.
“This will require coordinated action and measurable results. Imagine a region where everyone who works here can afford to live here, and where public-private partnerships drive lasting change. The time to act isn’t someday. It’s now,” wrote the authors.
(Edited by Aamaan Alam Khan)