On February 11, 2025, the Seattle City Council passed Council Bill 120937, a pivotal piece of legislation designed to incentivize the conversion of underutilized commercial properties into residential housing. This initiative, set to take effect in 2025, aims to address both the city's housing shortage and the challenges faced by the commercial real estate market in the wake of the COVID-19 pandemic.

Seattle is poised to further its commitment to innovative housing solutions by easing restrictions on congregate living. This move, driven by both local and state-level initiatives, reflects a growing recognition of the potential benefits of co-living and a desire to address the challenges of affordability and social isolation in urban environments.

At the heart of this shift is the recent state legislation, Engrossed Substitute House Bill 1998 (ESHB 1998), which mandates that cities allow co-living arrangements in designated zones. This state-level directive has prompted Seattle to re-examine its zoning code and make necessary adjustments to accommodate this emerging housing model.