Federal Way is grappling with significant housing affordability challenges. Nearly 40% of households in the city are cost-burdened, meaning they spend more than 30% of their gross income on housing costs. This financial strain leaves less money available for essentials like food, transportation, and medical care. The issue is particularly acute among households earning below 50% of the area median income, with Black, Indigenous, and people of color disproportionately affected.
The city’s housing production has not kept pace with demand. Since mid-2017, there has been a notable decline in multifamily housing construction, partly due to a temporary moratorium on such permits and increased impact fees to support the Federal Way School District. Additionally, there’s been a lack of ‘missing middle’ housing types, such as townhomes and multiplexes, contributing to intense competition for available housing and driving up costs faster than residents’ incomes.
To address these challenges, Federal Way needs to add approximately 6,800 new housing units by 2040 to accommodate expected population growth and account for past underproduction. This equates to an average production of 339 units each year, a 68% increase over recent housing production trends. The city aims to diversify housing types, including both rental and ownership units that cater to various income levels and needs, promoting more affordable homeownership opportunities.
Community initiatives are also in place to support residents. The Community Development Block Grant (CDBG) Program invests in eligible low- and moderate-income activities benefiting Federal Way residents. The program’s goals include providing decent housing, a suitable living environment, and economic opportunities. Funding opportunities are available for public service or capital activities, with open public comment periods for community input.
Residents can stay informed about city developments through the Federal Way Citywide News, which offers updates on events and activities happening in and around the city. Additionally, the ‘Eyes on Federal Way’ app allows residents to report non-emergency issues like potholes, graffiti, and abandoned shopping carts, facilitating direct communication with city departments.
Addressing housing affordability is a complex challenge requiring coordinated efforts from city officials, community organizations, and residents. By working together, Federal Way aims to create a more inclusive and sustainable community for all.