Allied8 Innovates New Housing Typology to Help Solve Affordability in Seattle

by Leah Martin

The founders of Allied8 (Leah Martin & Barbara Busetti) made a promise to each other to develop a project when they formed in 2015. The development couldn’t just be a run of the mill development but rather, it had to be something that served as an example of how a small firm could contribute to housing affordability in Seattle and elsewhere. They set their sights on single family zones (now called Neighborhood Residential in Seattle) and more specifically, on building affordable homes in single family zones.

Their premise was very simple - the average size of a home in Seattle is 2,600 SF and costs over $900,000. If that average home could be divided by 3 owners, then theoretically each owner would be allotted 860 SF and it would cost them $300,000 each. To do that in a way that people would want to purchase a part of a home that also complied with Seattle’s Zoning code, meant Allied8 had to create a new housing typology that didn’t otherwise exist on the market, and it would have to rely on the fact that people would be willing to share certain spaces within their home.

Allied8 got to work! We drew, we interviewed hopeful first-time home buyers, we drew more, we created construction budgets, we kept drawing and then we bought a property. Out of this effort, the “Suite” was born and is on full display at Corvidae Co-op in the Rainier Valley, a co-development between Allied8 and Frolic Community.

Before we share the anatomy of a “suite”, we need to provide the affordably context of the current and planned zoning codes. As the Seattle zoning code is currently written, NR zones can accommodate a single-family residence and two accessory dwelling units. The single-family residence (SFR) is allowed to be 50% of the lot area. On a commonly sized lot of 5,000 SF, the SFR would be 2,500 SF. Per Redfin, the median sale price per square foot [for single family homes] in Seattle is $592.^[i]

There are no affordable homes on the market in Seattle because of this – check out the math: 2,500 SF X $592/SF = $1,480,000 Home

For those of you familiar with affordable homeownership math, a four-person household that could afford this home would make 219% of the Area Median Income (AMI). Affordability is defined as a household earning 80% AMI or less. The gap between 80% AMI and 219% AMI is staggering. It’s no wonder we’re in the midst of an affordable housing crisis.

Looking ahead to the Seattle One Plan, which reflects the increased density mandated by the Washington State House Bill 1110, Seattle’s planned zoning code will allow 4 units on a lot.

The math is better, but it still doesn’t reach affordable levels. On that same 5,000 SF lot used in the math above, four 1,500 SF homes would be allowed but each home would still cost $888,000. A four-person household that could afford this home would have to make 136% of the Area Median Income (AMI). The gap is still too large to provide affordable homeownership solutions in NR zones.

But imagine if two households could own one of those homes – that’s where affordable levels begin to be met. The challenge is to design homes that thoughtfully accommodate shared ownership among different households.

A conventional dwelling unit contains rooms we use every day and rooms that we may only use once a week, once a month or less. The “suite” distills the dwelling down to only the rooms and features that are used on a daily basis. The rooms and features that are used less frequently are pulled out of the private dwelling and placed in the communal space, making the “suite” more affordable than a conventional dwelling unit because an owner is paying a privacy premium only on what is used every day, and the rest is split amongst all the other owners.

Additionally, we have proven that people want more choice than what is on the market. Corvidae sold out its “suites” before it sold out its conventional units. We now have 6 comps that future projects can utilize for loan underwriting and appraising. The market is undeniably there. With 366,000 renters, Seattle now has more renters than homeowners for the first time in more than 100 years. ^[ii] If only 10% of that population wanted to own a home in Seattle (we believe the number is much higher) then the market for “suites” is robust.

“Suites” are a powerful tool that enable architects and developers to introduce affordability into neighborhoods that have been out of reach for so many households in Seattle.

The collaboration between Allied8 & Frolic was critical to Corvidae Co-op’s existence. Allied8 unlocked the additional density and affordability in traditionally single-family neighborhoods while Frolic’s model of co-operative ownership and cohousing unlocked the ability for individual owners to get mortgages on these suites in a cohesive legal, financial, and social structure that further drove down affordability. Other project partners included Habitat for Humanity, Seattle Office of Housing, Green Canopy NODE, 1^st Security Bank, Rainier Valley Community Development Fund, and the Local Enterprise Assistance Fund.

Photography Credit: Rafael Soldi

Drawing Credit: Allied8

For Corvidae Co-Op tours and media inquiries click here.

A version of this article can also be found in the Daily Journal of Commerce.

[i] https://www.seattletimes.com/seattle-news/data/for-the-first-time-in-100-years-seattle-renters-outnumber-homeowners/#:~:text=In%202019%2C%20the%20estimated%20renter,population%2C%20which%20was%20about%20362%2C000.