| Economic vitality is a common topic these days both nationally and locally. And something that has a large effect on this vitality is the cost of housing. The reason for this is that housing prices impact the cost of living, which effects what businesses spend on employment compensation. And the prosperity of businesses is what largely dictates the vitality of any economy.
In the Puget Sound, one of our largest challenges is a lack of affordable housing, especially in those areas that are close to the job centers. In order to afford owning a home in the Puget Sound area, many people are being forced to “drive to buy.” Furthermore, we have a serious shortage of “new” affordable housing close to the metro areas, so home owners must move further out if they want to live in a newly constructed home. Again, this reinforces the fact that people are being forced to commute considerable distances from the job centers to find all types of affordable housing.
In a nutshell, the challenge that we face is rapidly increasing housing and rental costs and a scarcity of affordable housing options in inner-city suburbs—resulting in urban sprawl and increased traffic congestion. Traffic congestion also boosts the demand for housing closer to the city to avoid a lengthy commute; it’s a vicious circle that threatens the quality of life in our area.
The crux of the problem is that the Puget Sound has been on the receiving end of an unsuccessful growth management plan for some time now. The Growth Management Act that was adopted by the Washington State Legislature over ten years ago never counted on the extreme growth that the area experienced during the 1990’s, especially in the urban communities in close proximity to Seattle. And the fact is, we’re not getting any smaller. In fact, projections show that we will experience a population increase of over one million people by the year 2030.
The answer to this problem is smart growth, with emphasis on the word “smart.” We need our governmental officials to pass legislation that support smart growth. The Washington State Legislature is currently considering implementing a user tax for those who drive cars. This tax will most likely exist in the form of a gas tax or a related transportation tax. The idea behind this is to charge those who drive automobiles an annual tax. The money raised from this tax would go directly towards improving roadways and implementing smarter transportation options. Unfortunately no other sources of funds are available to make an impact on our transportation problem, so for now this is one of the only viable options.
The ultimate goal is to improve traffic conditions, so that the commute to the job centers is less congested. With an improved commute, the demand for housing close to the job centers will subside because the drive time from the outer suburbs will be reduced. Furthermore, with less demand on these homes, prices will appreciate at a more reasonable pace and more people will be able to afford homes closer to the job centers.
The truth is that under current conditions things simply are not getting any better and this is having a direct impact on our economy. We need a paradigm shift in our approach and our local government officials need more political cover so that they can actively support smart growth options, such as housing supply and the transportation tax—and still get re-elected.
Call your legislators today at (800) 562-6000 to express your feelings about these issues. The future vitality of our local economy depends on it.
(Editor’s Note: J. Lennox Scott is the president of John L. Scott Real Estate. You can visit his Web site at www.johnlscott.com.). | 