Why construction cranes and design review meetings have disappeared and higher rents will keep appearing on Capitol Hill

Seattle's affordable housing crisis deepens as construction activity stalls, with the Capitol Hill skyline notably devoid of cranes. Recent data reveals a staggering 47% drop in residential permit applications, indicating a significant slowdown in new housing projects. Local developers attribute this decline to rising interest rates, which make it challenging for projects to yield acceptable returns. Experts warn that the reduction in permits will likely lead to fewer units entering the market, exacerbating the existing housing shortage. While some developers, such as Hunters Capital, continue to pursue new ventures, many face financing hurdles that threaten project viability.

Affordable housing developers like Community Roots Housing also expect to build fewer units in 2025, citing limited public funding as a significant barrier. As Seattle officials commemorate the start of construction on essential community projects, the overall outlook for new housing developments remains grim. Without significant changes in market conditions or funding availability, high rents and reduced housing options are expected to persist.