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Well if development is this vs. that, 5,000 tiny apartments is an affordable housing decision relative to luxury condos, let's say. It does allow people with slightly lower incomes (than could otherwise afford to live there) live there. But it sure doesn't solve any homelessness problem. The people sleeping in tents littered around Seattle's freeways are not families making $70,000 a year who are just waiting and waiting for an affordable apartment to come up for rent. They're people with serious mental and substance use problems who have no foreseeable near-term future earning a living and paying for their housing and utilities in a place like Seattle.
True -- and that points to another case of a poorly defined problem leading to a poorly designed solution. This does nothing to actually address the homeless problem, and won't make a dent in the housing costs.
Seattle proper doesn't have a lot of room to develop out. It'd have to develop up. Which means big tall buildings full of small apartments.
Tall buildings and small apartments are where it usually ends up, but that just means expensive, smaller, homes, and a more transient population. The answer really should be more balanced. They need to make it easier to access more affordable options... but those affordable options are not going to be downtown, but in the suburbs. That's also why many areas are moving to a more decentralized model. Amazon would probably be better served by adding buildings in the suburbs than in downtown.