If you’ve been following Seattle real estate trends, you know affordability has become one of the city’s biggest challenges. With single-family homes now averaging well over a million dollars, many first-time buyers feel completely priced out. But a major zoning shift is quietly changing the game. This update is creating a brand-new type of housing that looks just like a traditional home but is legally classified as a condo — and it comes with a price tag hundreds of thousands less. For anyone considering Seattle Washington real estate, this could open the door to homeownership in neighborhoods that once felt out of reach.

What Changed in Seattle’s Housing Rules?

In June 2025, Seattle released Phase 2 of its One Seattle Plan, marking one of the most significant zoning changes in decades. Here’s what it means:

• Single-family zoning is effectively gone in urban centers.

• Developers can now build up to 4 units on standard residential lots.

• If the property is near a transit hub, they can build up to 6 units.

The key twist: instead of building large apartment complexes, developers are designing condos that look exactly like single-family homes. From the street, they have the same curb appeal and neighborhood feel — but at a fraction of the cost.

The Numbers: Why This Matters for Buyers

Seattle’s median single-family home price has hit $1.16 million.

• Buyers need a household income of $200K+ just to qualify.

• Competition is fierce, with only 1.8 months of inventory available.

By comparison, these new single-family-style condos are selling for:

• $650,000 – $750,000

• About $400,000 less than a typical single-family home

• Lower down payment requirements (as little as $25K–$40K with assistance programs)

What Do These Homes Look Like?

These aren’t high-rise condos. They’re designed to feel like houses:

• Townhomes and cottage-style builds

• Stacked flats with private entrances

• Outdoor spaces such as small yards or patios

• New construction with modern finishes

You still get the feel of homeownership without the $1M+ price tag.

Why This Is a Win for First-Time Buyers

1. Affordability – Significantly lower entry price and down payment.

2. Less Maintenance – No aging plumbing or big roof repairs like older homes.

3. Great Locations – Built in established neighborhoods with transit access.

4. Flexibility – Many have small HOAs that allow renting and customization.

The Investment Case

These homes aren’t just affordable — they’re smart investments.

• Lower HOA fees: $20–$40/month compared to traditional condos at $400+.

• Strong appreciation potential as Seattle adds 30 new neighborhood centers.

• Early adopters are buying into a trend that’s reshaping how housing is built.

In just a few years, these will no longer be rare. Buying now means securing one of the first in an established neighborhood, with long-term upside.

Bottom Line

Buying your first home in Seattle often feels impossible — but this zoning change has created new opportunities. These condo-style homes look and feel like traditional houses but at a fraction of the cost, making them a breakthrough option for first-time buyers.

If you’re curious about where to find them, what neighborhoods offer the best deals, and how much you’ll need saved, I’ve created a free guide that walks you through everything.