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The context before the opportunity

Before diving into the specific opportunities that Detached Accessory Dwelling Units (DADUs) present, it's worth understanding the broader context: Washington State is facing a housing shortage that affects every community, every family, and our collective future.

The legislation we'll discuss — HB 1110 (Middle Housing) and HB 1337 (DADU Law) — didn't emerge in a vacuum. These laws represent a comprehensive legislative response to one of the most pressing challenges of our time: how to provide housing for a growing population while maintaining community character, preserving affordability, and creating pathways to wealth-building for everyday homeowners.

A 30,000-Foot View

The housing crisis

Washington State faces a housing shortage that has been decades in the making, and the numbers tell a sobering story.

Washington needs approximately 1,000,000 new homes by 2044 to meet the housing needs of our current and future population. That isn't just about raw numbers — it's about people. Families struggling to find housing they can afford. Young professionals unable to buy a first home. Seniors seeking to age in place. Essential workers commuting hours because they can't afford to live near their jobs.

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Population Growth

Washington's population continues to grow steadily, driven by job opportunities, quality of life, and migration from other states. Housing production has not kept pace with that growth.

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Limited Housing Options

For decades, most residential areas were zoned exclusively for single-family detached homes, limiting housing diversity and restricting supply in established neighborhoods.

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Affordability Pressure

The shortage of housing has driven prices to historically high levels, pricing out middle-income households and creating affordability challenges across the state.

The Core Problem

Washington is unlikely to meet affordability goals for future populations without changes to housing policy. The state needed a multi-faceted approach that would:

  • Increase housing density in areas already served by infrastructure
  • Create diverse housing options at various income levels
  • Reduce pressure to develop natural and working lands
  • Support climate strategies by reducing sprawl and transportation emissions
  • Preserve community character while adding needed housing
Two-Pronged Approach

The legislative response

Washington's legislature passed two landmark housing laws in 2023, both taking effect in 2024 after jurisdictions completed their comprehensive plan updates and development regulations.

HB 1110: Middle Housing for Builders & Developers

House Bill 1110, passed in 2023, changed how Washington approaches housing density. The law requires cities to allow "middle housing" — housing types between single-family homes and large apartment buildings — throughout areas previously zoned exclusively for single-family homes.

What HB 1110 Permits

  • Duplexes, fourplexes, and sixplexes — multiple units in a single structure
  • Cottage housing clusters — small homes around shared open space
  • Townhomes and stacked flats — attached housing configurations
  • Courtyard apartments — up to four units arranged around a courtyard
  • Higher density near transit — additional units near major transit stops
  • Bonus density for affordable housing — extra units when projects include dedicated affordable housing
HB 1110's Impact on Affordable Housing

The legislation addresses affordability in several ways:

  • More housing units at all income levels — increasing supply helps moderate price growth
  • Homes affordable by design — higher-density housing costs less to build and to buy or rent
  • Reduced household costs — dense housing near transit reduces transportation expenses
  • Utilizes existing infrastructure — building in established areas saves public money and reduces sprawl
  • Complements public investment — works alongside historic housing trust fund investments

The practical reality: HB 1110 is primarily used by professional developers and builders who have the capital, expertise, and scale to undertake multiplex developments. This law created opportunities for the development community to address the housing shortage.

HB 1337: Empowering Homeowners to Become Their Own Developers

While HB 1110 opened doors for professional developers, House Bill 1337 (also passed in 2023) took a different approach: empowering individual homeowners to become developers of their own property through Detached Accessory Dwelling Units.

This legislation recognized that not every solution to the housing shortage needs to come from large-scale development. Individual homeowners, collectively, control vast amounts of residential land. By enabling these property owners to add housing units to their existing lots, HB 1337 unlocks a distributed source of new housing supply.

What HB 1337 Permits

  • Up to two DADUs per property — separate structures on your existing lot
  • Flexible placement — front, side, or backyard locations
  • No subdivision required — keep your main house while adding units
  • Owner-occupancy not required — flexibility in how you use the property
  • Condominiumization option — ability to sell DADUs separately while keeping the main house
  • Limited parking requirements — maximum of 1–2 spaces per unit depending on lot size
  • Streamlined permitting — same process as single-family homes
The Homeowner Advantage

HB 1337 changes the equation for homeowners:

  • Homeowners become developers — without buying new property or subdividing lots
  • Profit from existing assets — unlock the development potential of property you already own
  • Create passive income streams — rent DADUs for ongoing monthly income (with a 12-year rent control exemption under HB 1217)
  • Build family wealth — sell DADUs as condos while keeping your main house
  • Multigenerational living — house aging parents or adult children while maintaining privacy
  • Aging in place — create a smaller, accessible home for your future needs
  • Contribute to housing supply — help address the shortage from your own property
Community Impact

The critical difference

Both laws aim to increase housing density, but their effects on existing neighborhoods are very different.

HB 1110: Transformation Through Replacement

The typical pattern:

  • Developer purchases an existing single-family home
  • The existing home is demolished
  • A new multiplex structure is built, often three stories tall
  • Result: architecture that may not match the surrounding neighborhood

Many neighborhoods have opposed HB 1110 developments, citing concerns about losing neighborhood history, character, and charm as century-old homes are replaced with modern multiplexes.

HB 1337: Density Through Addition

The DADU pattern:

  • Homeowner keeps the existing main house intact
  • One or two smaller structures are added to the property
  • DADUs are designed to complement the existing architecture
  • Result: integration that preserves the existing streetscape

DADUs are generally better received by communities. They add housing density while preserving the older homes and architectural character that define a neighborhood.

Why DADUs Preserve Community Character

  • History is preserved — main houses that have stood for decades remain intact
  • Architecture harmonizes — DADUs are designed to match or complement existing homes
  • Scale is appropriate — smaller structures fit the residential context
  • Neighborhoods evolve gradually — change happens incrementally, not through wholesale replacement
  • Community identity remains — the character that makes a neighborhood distinctive is maintained

Bottom line: HB 1110 multiplexes often replace the existing housing stock. HB 1337 DADUs add to it — reaching density goals without erasing what's already there.

Scale of Opportunity

How DADUs address density goals

HB 1337 lets homeowners contribute meaningfully to Washington's housing density goals while maintaining community character.

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Distributed Density

Instead of concentrated developments in specific areas, DADUs create housing throughout established neighborhoods. This spreads the benefits — and the infrastructure load — more evenly.

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Infrastructure Efficiency

DADUs use existing urban infrastructure — streets, utilities, transit, schools, and services. That's far more cost-effective than extending infrastructure to greenfield development on the urban fringe.

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Environmental Benefits

By adding housing in established areas, DADUs reduce sprawl, preserve natural lands, shorten commutes, and support climate goals — while being more energy-efficient than larger homes.

The Math

Washington needs 1,000,000 new homes by 2044 — approximately 50,000 homes per year. If even a fraction of existing homeowners added DADUs:

  • 5% of homeowners adding one DADU each would make a substantial contribution to supply
  • 10% of homeowners adding two DADUs each would have a transformative impact on availability
  • Each DADU provides an attainable housing option for individuals, couples, or small households
  • Collectively, these individual actions create distributed, community-friendly density

The power of HB 1337 is in its scale: thousands of individual property owners, each making a modest addition, collectively creating significant housing supply — while preserving the character of their neighborhoods.

A Key Distinction

"Affordable" vs. "attainable" housing

The two laws address cost in different ways, and the vocabulary matters.

 HB 1110 — "Affordable" FocusHB 1337 — "Attainable" Solution
Definition Income-restricted units, often subsidized through government programs, with eligibility requirements and below-market rents Market-rate housing accessible to working households — not subsidized, but reasonably priced through efficient design and construction
Who builds it Professional developers with capital and scale Individual homeowners on lots they already own
Practical reach Projects can include affordable units, but market-rate units in multiplexes may still be priced beyond reach for many middle-income households in high-cost markets Smaller, well-designed units that rent or sell at prices middle-income households can manage — quality housing within reach rather than affordable by subsidized definition

Terminology as used in Washington housing policy discussion; see HB 1110 and HB 1337 statutory text for legal definitions.

The Path Forward

Your role in the solution

Washington's housing challenge requires solutions at every scale — from state policy to large developments to individual homeowner action.

HB 1337 recognizes that everyday homeowners have a role to play. By enabling you to become a developer of your own property, the legislation creates a genuine opportunity: you can help address a community need while building wealth for your family.

Homeowners Can
  • Add housing supply to their community without sacrificing neighborhood character
  • Create rental income that provides financial security and builds wealth
  • Sell DADUs as condos while keeping the main house, accessing equity without moving
  • House family members in a way that maintains privacy and independence
  • Age in place by creating accessible, appropriate housing for future needs
  • Participate in the solution to Washington's housing shortage from their own property

This is the power of HB 1337: it turns homeowners from observers of the housing shortage into participants in the response — while creating financial opportunities that benefit their families for years.

Context

Why this matters

Understanding the 30,000-foot view is worth the time, because it clarifies four things.

The Urgency

Washington's housing shortage isn't a distant problem — it's affecting households right now. Every year that passes without adding housing, affordability gets harder and more people are priced out of ownership and stable housing.

The Opportunity

HB 1337 represents an unusual opening for homeowners. The legal framework, financing options, and market conditions currently align in a way that creates real possibilities for wealth-building and community contribution.

The Choice

You have a say in how density arrives in your neighborhood. Support for DADUs means housing growth that preserves the existing streetscape. Opposition leaves the field to HB 1110 developments that change neighborhoods more visibly.

The Impact

Individual homeowner decisions add up. If thousands of homeowners each add one or two DADUs, the combined effect on housing supply is significant — achieved incrementally, preserving neighborhood character.

Continue the Series

Where to go next

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We'll walk you through a property-specific analysis, the financing options that fit your situation, and an honest picture of what the process involves — before you commit to anything.

About This Guide & Sources

This overview of Washington's housing legislation was created by HeartLink Homes at Keller Williams Realty Puyallup to give homeowners the context behind the DADU opportunity. Information has been compiled from:

Important: This page is general education, not legal, tax, or financial advice. DADU rules are implemented locally, and requirements for lot size, height, setbacks, parking, and permitting vary by jurisdiction and change over time. Verify current requirements with your city or county planning department before making decisions. Contact HeartLink Homes to discuss your specific property.