Tired of Seattle-area empty strip malls? Soon they might become housing

March 28, 2026 - 09:10

Governor Bob Ferguson signed significant legislation on Friday that opens the door for residential development in most commercial zones across Washington state. The new law aims to tackle the dual crises of housing shortages and underutilized urban spaces by transforming vacant strip malls and empty retail lots into much-needed homes.

The high-profile initiative, however, arrives at the finish line in a diluted form. During the legislative process, the bill was subject to amendments that substantially weakened its original scope and impact. Key concessions include allowing larger cities more discretion to opt out of certain requirements and permitting local governments to impose stricter development standards.

Proponents argue the policy is a crucial step toward creating more dense, walkable communities and making better use of existing infrastructure. They see it as a vital tool for increasing housing supply amid a persistent affordability crisis. Critics, including some city officials, had expressed concerns about losing local zoning control and the potential strain on public services.

Despite the compromises, the law marks a notable shift in the state's approach to land use, signaling a move to prioritize housing development in areas traditionally reserved for commerce. The full effect of the legislation will unfold as cities update their zoning codes to comply with the new state mandate.