Bellevue is undergoing significant changes in its housing policies to accommodate growth and enhance affordability. Recent decisions by the City Council reflect a commitment to diversifying housing options and supporting community needs.
Middle Housing Expansion
In July 2025, the Bellevue City Council approved updates to housing regulations, allowing for ‘middle housing’—such as duplexes, cottage courts, and small apartment buildings—in areas previously restricted to single-family homes. This move aims to increase housing availability and address the region’s housing shortage.
Multifamily Tax Exemption Program Adjustments
In May 2026, the council discussed temporary updates to the city’s Multifamily Tax Exemption (MFTE) program. The proposed four-year catalyst program seeks to accelerate mixed-use and mixed-income housing development, with a progress review scheduled in two years.
Economic Development and Housing
As of March 2026, Bellevue’s Economic Development Plan highlighted a 39% increase in median household income from 2018 to 2023 and the addition of over 10,000 jobs. The plan emphasizes supporting emerging sectors like life sciences and clean technology, which are expected to influence housing demand and development.
Community Engagement and Future Plans
The city continues to engage with residents and stakeholders to shape its housing policies. Ongoing discussions focus on balancing growth with maintaining Bellevue’s quality of life, ensuring that housing developments align with community values and needs.
These initiatives demonstrate Bellevue’s proactive approach to addressing housing challenges and planning for a sustainable future.

