Washington state lawmakers are advancing legislation that would allow significantly more housing to be built in commercial areas, part of a broader effort to address a persistent housing shortage and rising costs across the state.

The proposal, known as Senate Bill 6026, would require many cities and counties to permit residential development in areas currently zoned for commercial or mixed-use activities.

The measure is designed to open large amounts of land—such as shopping centers, strip malls and big-box retail sites—to potential housing construction.

Under the plan, cities with populations above thirty thousand that operate under Washington’s Growth Management Act would have to allow residential uses in most commercially zoned areas.

The legislation would also limit local rules that require developers to include ground-floor retail space in new residential projects, a requirement that housing advocates say can make construction financially unviable in many locations.

Supporters argue the policy could unlock thousands of potential housing sites near jobs, transit corridors and shopping districts, making it easier to build apartments and condominiums without needing extensive rezoning approvals.

They say converting underused commercial properties into housing is a practical way to increase supply while revitalizing aging retail corridors.

Backers of the measure include housing advocates and some large employers who say the shortage of homes has become a major barrier to economic growth and workforce stability.

Technology companies and regional planners have urged lawmakers to make it easier to build homes close to employment centers and transportation networks.

The bill was introduced at the request of the governor and has moved through legislative committees with amendments intended to balance housing expansion with the preservation of commercial districts.

In its current form, the legislation would still allow local governments to require ground-floor commercial space in a limited share of designated areas, particularly in historic downtown cores.

Supporters say the change reflects a growing national trend toward rethinking zoning rules that separate housing from commercial uses.

Many cities are exploring ways to redevelop aging retail centers as mixed-use neighborhoods that combine housing, shops and services.

Some local officials and business groups have expressed caution, warning that eliminating commercial requirements too broadly could affect local economic development or reduce space for small businesses.

Lawmakers have continued negotiating exemptions and implementation details as the proposal moves through the legislative process.

If approved, the measure would mark another significant shift in Washington’s housing policy.

In recent years the state has adopted several reforms aimed at increasing housing supply, including laws allowing more housing units on residential lots and limiting certain development restrictions.

Advocates say allowing homes in commercial zones could play an important role in addressing the state’s housing shortage by making it easier and faster to build new residences in areas already served by infrastructure and jobs.