December 3, 2019
Multifamily microhousing may still be a contentious asset class to Seattle city officials, but it has been normalized among both investors and renters over the last decade, according to Kidder Mathews’ 2019 Microhousing Market Study, released by Dylan Simon’s and Jerrid Anderson’s multifamily investment team.
“Seattle’s residents have spoken, and they see microhousing as viable housing that offers them an affordable option to live in the best neighborhoods in our city,” said Anderson.
The regulatory environment for multifamily microhousing – which includes congregate units, micro studios, and Small Efficiency Dwelling Units (SEDU) – has been in flux over the past decade due to policy changes. This impact is evident in Seattle’s multifamily microhousing development pipeline, with only two micro studios projects under construction and two in permitting. SEDUs, however, have faced fewer regulatory barriers, and there are nearly 3,000 SEDUs under construction or with approved plans, which would effectively double the existing stock of SEDUs in the next 24 months.
There were seven sales for this microhousing category at a price-per-unit 15% higher than the sales prior to 2019. Microhousing sales in Seattle yielded an average price-per-square-foot 34% higher than sales of market-rate apartments.
*Pictured Footprint Phinney Ridge
For comments, questions or concerns, please contact Dennis Kaiser