As housing affordability and supply issues continue to challenge markets across the country, REALTORS® are at the forefront of advocating for innovative solutions. One increasingly viable strategy is lot splitting.
Lot splitting is the process which allows property owners to divide a single lot into two or more smaller parcels – essentially, splitting their lot into pieces. By embracing lot splitting, Washington can expand housing inventory, create more homeownership opportunities, and unlock the potential of underutilized land.
With staggering housing supply issues, REALTORS® across Washington State have championed lot splitting, advocating for it as a benefit to both clients and the community. For REALTORS®, lot splitting is more than just a zoning change—it’s a powerful tool to address the housing supply crisis and create more opportunities for buyers and sellers alike. Lot splitting would benefit the market in several ways:
1. More Inventory and More Transactions
One of the biggest barriers to a healthy housing market is the lack of inventory. With many cities and counties in Washington facing severe housing shortages, lot splitting allows for gentle density increases without major redevelopment. More lots mean more new homes, more listings, and ultimately, more opportunities for REALTORS® to serve their clients.
2. Increased Homeownership Opportunities
In high-demand areas, skyrocketing land values make it difficult for first-time buyers to enter the market. By creating smaller, more affordable parcels, lot splitting lowers the financial barrier to homeownership. REALTORS® can help clients identify opportunities to buy newly split lots or develop properties for entry-level buyers, retirees, and workforce housing.
3. Unlocking Hidden Value for Sellers
Many homeowners, especially those on large or underutilized lots, don’t realize the potential value they’re sitting on. As a trusted advisor, a REALTOR® can educate clients on how lot splitting can maximize their property’s value. Instead of selling a single oversized lot, a homeowner can split it, sell a portion, and still retain part of their property—often resulting in a higher overall return.
4. A Market-Driven Solution to Housing Needs
Unlike large-scale housing developments that require heavy government intervention, lot splitting empowers private property owners to be part of the housing solution. Washington REALTORS® support market-friendly policies that allow for a practical lot-splitting process. Across the country, several states have already embraced lot-splitting as a means to increase housing supply.
During the current legislative session, Washington REALTORS® has made the push for a commonsense lot splitting bill. At a time when the real estate market is facing low inventory and affordability challenges, lot splitting offers a practical, scalable, and market-driven way to expand inventory, generate transactions, and increase property value while maintaining the integrity of local communities.
For more information about buying or selling a home, be sure to work with a REALTOR®, a member of the National Association of REALTORS®. Snohomish County Camano Association of REALTORS® is the voice for real estate in Snohomish County. If you have questions for The Expert about real estate email us at [email protected], or visit www.sccar.org for more information.
