Determinants of Housing Underproduction in Washington State Counties: Analyzing the Impact of Policy, Demographic, and Economic Factors

Abstract

The urbanized regions of the State of Washington are widely known for being difficult cities to find an affordable place to live. The purpose of this thesis is to identify factors contributing to housing underproduction through correlation and regression analyses. The following research uncovers significant correlations and connections among variables like single-family residence square footage and Urban Growth Area (UGA) square footage. Specific trios of correlations are explored, unveiling the interdependence of housing shortages, mobility rates (the moving from one residence to another), and median gross rent. Regression analyses provide predictive insights, highlighting the importance of variables such as Urban Growth Area land, non-white population share, unemployment rate, and median gross rent in shaping housing underproduction.Responses for housing policy and practice are postulated such as diverse zoning, public sector housing development, and federal support. This thesis challenges misconceptions by discrediting the notion that immigrants contribute to housing underproduction. This study also scrutinizes rent's role, confirming intuitive relationships between median gross rent and housing underproduction. Recommendations include the easing of zoning restrictions for infill development, the implementation of proactive state involvement to incentivize housing production and the transfer of public capital resources to nonprofit housing developers and public housing agencies. Rent control's potential benefits and the importance of public housing initiatives are highlighted. Policy makers are encouraged to recognize that developers and landlords are exploiting vulnerable Washingtonians. This can and must be corrected through revised policy.