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Why Housing Affordability Poses a Major Challenge for Seattle Area’s Space Industry

Panel members at forum focusing on Washington state's space industry
Participants in a panel at a Bellevue Chamber luncheon focusing on the Seattle area’s space industry included, from left, U.S. Rep. Adam Smith; moderator Mike Fong, director of the Washington State Department of Commerce; Kelly Maloney, co-founder of Space Northwest; and Brian Huseman, vice president for public policy and community engagement at Amazon. (GeekWire Photo / Alan Boyle)

BELLEVUE, Wash. — A noteworthy ovation at a Bellevue Chamber gathering emphasizing Seattle’s burgeoning space industry emerged when concerns moved towards a pragmatic issue: housing affordability for the industry’s workforce.

“They don’t just come here to work,” U.S. Rep. Adam Smith, D-Wash., emphasized to the attendees at the sold-out luncheon. “They come here to live.”

The space sector is certainly flourishing in the Seattle area — especially noticeable in a suburban cluster extending from Bellevue to Redmond and Kirkland in the north, and to Kent and Tukwila in the south.

Mike Fong, the director of the Washington State Department of Commerce and the event’s moderator, noted that the state’s commercial space endeavors account for $4.6 billion in economic activity, generating over 13,000 jobs.

The number has seen growth since the economic impact report that Fong referenced first emerged. Jeff Bezos’ Blue Origin space venture reportedly employs about 11,000 individuals nationwide, with many based at its HQ in Kent. Amazon’s Project Kuiper satellite network — which is expanding its presence in Redmond, Kirkland, and Everett — has amassed a workforce of around 2,000 employees.

Incorporating staff from SpaceX’s satellite facility in Redmond, Aerojet Rocketdyne in Redmond, LeoStella in Tukwila, and various space startups, the overall impact on the area’s housing market is substantial. The existing pressure is notably high, with Bellevue’s median home selling price exceeding $1.5 million, according to the Northwest Multiple Listing Service.

“Not everybody in these companies gets issued 200 grand a year in stock options,” Smith conveyed to the audience, comprising business leaders and elected officials. “How are you going to afford a place to live? You’ve got to excel in building housing, making it affordable.”

The region’s communities and employers have been working to tackle the affordability dilemma, but Smith acknowledged the necessity for further action.

“The complex permitting process and the associated requirements impede the pace of housing development,” he remarked. “Although many advocate for increased housing expenditures, if the construction cost structure isn’t revised, the funding will fall short.”

Smith also stressed the importance of enhancing the state’s educational framework, focusing on science, technology, engineering, and math (STEM) disciplines. Kelly Maloney, co-founder of Space Northwest, echoed these views.

“Youth represent the future workforce we must nurture through appropriate programs,” Maloney asserted. “Much has been achieved, yet significant needs persist, especially for the underserved and marginalized.”

There’s optimism as well. “One policy domain that is progressing well is workforce development,” Smith observed. “We see extensive collaboration among businesses, unions, community/technical colleges, and increasingly, high schools.”

Brian Huseman, Amazon’s vice president for public policy and community engagement, referenced Project Kuiper’s collaboration with Lake Washington Institute of Technology in Kirkland. This initiative is setting up a certificate program for satellite technicians, some of whom may ultimately join Project Kuiper.

“We are assisting in training and creating a new category of jobs,” Huseman expressed. “We are incredibly enthusiastic about these prospects.”

Looking forward, Maloney proposed that Washington’s space sector could adopt successful strategies from other tech industries.

“Establishing a government-partnered incubator specifically for the space sector or related tech fields could be advantageous for our state,” she suggested. “This would provide significant support for individuals at the startup innovation phase.”

Currently, there are several space-focused startup accelerators, including Starburst, Amazon Web Services’ AWS Space Accelerator, and the Techstars Space Accelerator. A venture studio named Actuate Ventures is beginning its journey with plans to create innovation hubs in Redmond and other key space industry locales. Will there be more? Stay tuned.

Fong noted that today’s growing interest in commercial space ventures signifies the continuation of the region’s tech industry leadership.

“We’re building upon a 60-year tradition, dating back to Boeing’s lunar rover efforts during the Apollo missions,” he remarked. “In reality, it’s the unique DNA of the Pacific Northwest that supports and sustains our pivotal role in this emerging economic domain.”

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