In February 2025, Seattle made headlines among housing advocates nationwide when approximately two-thirds of voters approved a ballot initiative introducing a new 5% payroll tax on salaries exceeding $1 million. This initiative is projected to generate an estimated $52 million annually, which will be allocated to a public development authority known as Seattle Social Housing. This authority is tasked with constructing and maintaining permanently affordable housing options.
Since 2021, the county’s housing authority has leveraged a $100 million housing fund to invest in new mixed-income developments. These investments allow the county to maintain co-ownership and reduce development costs, enabling 30% of homes to be offered at significantly below-market rents indefinitely. While Vienna is often seen as the global leader in social housing, Montgomery County has emerged as its domestic equivalent.
Over the past two decades, Seattle has experienced soaring rents and home prices, largely driven by high incomes and relatively low tax contributions from major tech companies like Amazon. Previous attempts to compel these corporations to contribute to the city’s affordability have yielded mixed outcomes. The approval of this initiative indicates that, in the face of a significant affordability crisis, voters recognize the need for a new public sector role and a dedicated revenue stream to support housing solutions…