Video: Seattle experiencing growing pains

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SEATTLE - New housing in Seattle is going up faster than anyone thought.

In Ballard alone, 1,400 units have gone up in three years. The new residents crowd the morning commute.

The more people and higher demand are driving up the price for buyers, renters and developers

On Wednesday a Seattle City Council committee moved to expand tax breaks for developers who build in areas of major growth, and to set aside some units to be priced below market rate.

By expanding developer tax breaks, the city hopes to help not only the lower income renter, but people like rookie firefighters who earn around $55,000 - just under the median income - but can't afford to live in the city

"Our first responders, our teachers," said Charles Royer, of the Middle Income Housing Alliance. "The people who do the work of the city are now forced to these unsustainable long commutes."

The council committee voted four to one to expand developer tax credits.

Supporters say it's a way to promote construction of affordable housing in the city.

Opponents say it will only drive up rent.

"This provides a lucrative incentive to the tune of millions of our tax dollars to encourage them to go out into these neighborhoods, to build still more developments at high rents well above what most tenants can afford," said John Fox, of the Seattle Displacement Coalition.

The developer tax exemption revision was approved by a Seattle City Council committee today. The full council could take up the measure as soon as next week.