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Seattle just legalized the thing every investor dreams of: turning one front door into four cash-flowing units—without begging the city for mercy. Zoning reform is as sexy as it sounds, but it is quietly becoming a lucrative investment trend many are not paying enough attention to. Plus, Gen Z is renting like it’s a lifestyle brand, insurers are sweating bullets, and mortgage lenders are finally dusting off their fax machines again.

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UPZONING

Story: Washington State is rolling out its upzoning law this summer—cue the bulldozers and infill dreams. H.B. 1110, passed in 2023, is officially kicking in, allowing duplexes, triplexes, and even fourplexes to sprout in previously single-family-only zones across many cities. The goal? Curb a housing shortage that’s seen Seattle’s median single-family home price climb past $1 million—because apparently, coffee isn’t the only thing that costs a fortune in Seattle now.

So What? For investors and smaller developers, this is like someone handing you an extra unit or two without requiring a knife fight at zoning committee night. Upzoning means you can add density without begging for it. Upzoning allows the legal increase of rental yields and property value on the same parcel of land. Translation: more doors, more dollars, less red tape. This is huge news for value-add players who want to convert or build mid-density projects without dancing through bureaucratic hoops.

What’s Next? The law kicks in this summer, so expect permitting processes to adjust and local municipalities to scramble (in a good way… maybe). Keep your eyes on Seattle and other metro areas, looking at similar policies for a wave of ADU and small multifamily activity. Also watch developers and institutional buyers who’ve been quietly land banking single-family lots—this law just made their spreadsheets a whole lot sexier.

Source: HousingWire

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