Debunking Seattle's 'Housing Shortage'

A post examining common responses to the question of why the cost of housing continues to rise requires a frank discussion about the nature of Seattle's "housing shortage."

2 minute read

November 25, 2016, 7:00 AM PST

By James Brasuell @CasualBrasuell


Seattle Sailboats

Julie Flavin Photography / Shutterstock

Michael Goldman asks a critical question, with relevance to other cities around the country, and eventually finds an answer that many pro-housing advocates might not like: "Why do Seattle rents continue to rise to higher and higher levels of unaffordability?" 

Goldman notes a narrative that is used more and more frequently in the city to explain the lack of affordable housing: a housing shortage. "The housing shortage narrative has largely replaced the language of supply-and-demand, which has recently been criticized for being too reminiscent of trickle-down economics or too simplistic (although some still favor it)," writes Goldman.

The differences between the two lines of argument, Goldman writes, are subtle: "The essence of the shortage argument is the same as the supply-and-demand argument, though. Simply, when the production of housing outpaces the demand for housing we have a housing surplus. When housing production falls behind demand we have a housing shortage."

Thus, Goldman begins the process of debunking the housing shortage narrative, specifically the typical claim about the regulatory causes of the high cost of housing: "upon closer examination, the housing shortage between 2010 to 2015 was not the result of restrictive local regulations but restrictive global capital."

Goldman also suggests a new narrative that might actually be more tractable: out of control rents. The high cost of rent, according to Goldman, is a specific housing shortage that isn't resolved by simply building more housing. "To address the specific shortage, it’s time we started looking at specific solutions including a progressive income tax, rent stabilization, and aggressively capturing the value concentrating in urban land so it can be funneled into affordable housing."

Tuesday, November 22, 2016 in The Urbanist

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

June 11, 2025 - Diana Ionescu

Rendering of Shirley Chisholm Village four-story housing development with person biking in front.

San Francisco's School District Spent $105M To Build Affordable Housing for Teachers — And That's Just the Beginning

SFUSD joins a growing list of school districts using their land holdings to address housing affordability challenges faced by their own employees.

June 8, 2025 - Fast Company

Yellow single-seat Japanese electric vehicle drivign down road.

The Tiny, Adorable $7,000 Car Turning Japan Onto EVs

The single seat Mibot charges from a regular plug as quickly as an iPad, and is about half the price of an average EV.

June 6, 2025 - PC Magazine

White Waymo autonomous car driving fast down city street with blurred background at night.

Seattle's Plan for Adopting Driverless Cars

Equity, safety, accessibility and affordability are front of mind as the city prepares for robotaxis and other autonomous vehicles.

5 hours ago - Smart Cities Dive

Two small wooden one-story homes in Florida with floodwaters at their doors.

As Trump Phases Out FEMA, Is It Time to Flee the Floodplains?

With less federal funding available for disaster relief efforts, the need to relocate at-risk communities is more urgent than ever.

7 hours ago - Governing

People riding bicycles on separated bike trail.

With Protected Lanes, 460% More People Commute by Bike

For those needing more ammo, more data proving what we already knew is here.

June 16 - UNM News