Washington seeks to reset ground-floor retail rules for residential buildings

"A fight over ground-floor retail mandates could become one of the most consequential zoning debates of 2026, with Washington state lawmakers moving to curb mandatory storefronts in new residential buildings. A bill in the Washington state Senate would flip the script on commercial zoning, requiring cities with more than 30,000 residents to allow housing by right on most commercially-zoned land. That approach has become common for cities and states seeking to increase housing supply."

"However, the bill would go further by sharply limiting how often local governments can force ground-floor retail into those projects. So far, Washington is the only state to consider limiting mandates at the state level, creating a model that other officials in other states are monitoring closely. After decades of codifying these mandates, cities nationwide have now put eliminating them in the crosshairs to address housing affordability and supply, as well as vacant ground-floor retail."

Washington state lawmakers are proposing a Senate bill that would require cities with more than 30,000 residents to allow housing by right on most commercially zoned land while sharply restricting local governments' ability to mandate ground-floor retail. The measure would be the first state-level limitation on such mandates and could serve as a model for other states. Cities nationwide are increasingly targeting ground-floor retail requirements to boost housing supply, convert vacant commercial space to residences, and address affordability. Several cities, including Grand Rapids, New York City, and San Francisco, have relaxed rules to allow ground-floor residential conversions. The shift reverses decades of policies promoting active street-level retail through requirements and development bonuses.

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