At the end of September 2026, Bainbridge Island had 94 active single-family listings and 18 active condominium listings, according to the Northwest Multiple Listing Service September breakout for Kitsap County. The city's zoning work in Winslow is aimed at those 18 condos and the multifamily housing that could join them. It is not aimed at the 94 houses.
That gap matters if you're comparing Bainbridge with other Puget Sound communities this fall. The city is under a state deadline to add housing capacity, and an emergency ordinance has already changed what can be built near the ferry terminal. Any new supply would arrive as condos and apartments in Winslow's commercial zones. In September, single-family homes were where demand was rising fastest, and those homes are outside the zones being rezoned.
Bainbridge moved against the rest of Kitsap in September
Across Kitsap County in September 2026, NWMLS recorded 307 pending sales, down 19.21% from September 2025. Active listings rose 18.32% to 904. More listings and fewer contracts look like a cooling market.
Bainbridge went the other way. NWMLS map area 170, which the MLS's own map-area index identifies as Bainbridge Island, had 41 pending sales in September 2026, up 46.43% year over year. Island inventory also rose 40%, to 112 active listings, and new listings jumped from 39 to 70. Even so, Bainbridge closed the month with 2.15 months of inventory, tighter than the county's 2.58. Buyers absorbed the extra listings and then some.
Single-family homes drove the jump in contracts
Splitting the island's figures by property type shows where that pace came from.
| Bainbridge Island, September 2026 | Single-family | Condominium |
|---|---|---|
| Active listings | 94 | 18 |
| Pending sales | 35, up 75% | 6, down 25% |
| Closed sales | 43 | 9 |
| Median closed price | $1,300,000 | $665,000 |
| Months of inventory | 2.19 | 2.00 |
All figures come from the NWMLS September 2026 Kitsap breakout.
Single-family pendings rose from 20 in September 2025 to 35, and the median house price rose 9.34% from $1,189,000. Condo pendings fell from 8 to 6. The island's surge in contracts came from detached houses.
The condo market here is very small. Eighteen active listings and nine closings in a month are numbers a single new building could change. That is why the zoning decisions in Winslow matter more to a future condo buyer than to someone shopping for a house on acreage. The condo median, roughly half the single-family median, is the most accessible way into the island's for-sale market. That tier has the most room to grow, and it is where the city is adding capacity.
What changed in Winslow on August 25
In January 2026, the Washington State Department of Commerce selected Bainbridge for review under the Housing Accountability Act, a 2025 state law that requires cities to plan for affordable housing. The city missed Commerce's mid-August deadline, asked for a 120-day extension on July 24, and received it with one condition: adopt interim zoning right away. On August 25 the City Council adopted Ordinance 2026-10 as an emergency measure. It applies for six months, or until the permanent Comprehensive Plan, Winslow Subarea Plan and new zoning code take its place.
The city's announcement lists the main changes:
- Buildings up to 55 feet tall are allowed in the Central, Ferry Terminal and High School Road zones.
- Allowed lot coverage rises to 60% in the Connection zone, 100% in Ferry Terminal and 75% in High School Road.
- Mixed-use projects can be larger in the Ferry Terminal and High School Road zones.
- Bonus incentives for affordable housing and public benefits increase across the Central, Connection, Ferry Terminal and High School Road zones.
- Mandatory Inclusionary Zoning applies to some residential projects in certain zones.
All of these zones are in Winslow, between the ferry terminal and High School Road. None of the changes touch the large-lot residential districts that make up most of the island's single-family housing.
The rule that decides what kind of building goes up
Mandatory Inclusionary Zoning is the part most likely to change what a new Winslow building looks like inside. Under the zoning exhibit attached to the interim rules, any project proposing 10 or more homes in the Ferry Terminal or High School Road zones must set aside 20% of its units at two income levels. Half of those units, 10% of the building, are for households at 50% to 80% of area median income. The other 10% are for households at 81% to 110% of area median income.
In exchange, those projects get a bonus floor-area ratio of 3.0 and one extra story. A second extra story is available if the project provides under-building parking. In the High School Road zone, the lot-coverage cap for qualifying projects rises to 85%. The rule ties the requirement to the reward. A project that takes on the income-restricted units also gets more floors and more footprint to cover their cost.
For a buyer, this means larger condo or apartment buildings near the ferry would include a share of homes at set price levels alongside market-rate units. Projects under 10 units fall outside the requirement.
How many homes the city is planning for
On October 13 the City Council voted unanimously to approve the September Land Capacity Analysis prepared by LMN Architects, modeled with the inclusionary requirement in place, as the Bainbridge Island Review reported. LMN projected that the requirement would add 184 multifamily units. That brings the island's total planned capacity to 1,453 units, 267 more than the 1,186 the city must accommodate.
Two council members explained their votes to the Review.
"I support us moving forward. I don't think we can delay. Time is of the essence." Councilmember Ashley Mathews
"It's really hard not to get behind the option that is actually going to produce the housing that we are seeing here that is affordable." Deputy Mayor Kirsten Hytopoulos
A capacity analysis estimates what the zoning would allow over the planning period, which runs to 2044. The 184 units are planned room for growth in the condo and apartment tier, and they will reach the market over years, not seasons.
The deadline, and what the "builders' remedy" covers
The city's announcement says Commerce granted a 120-day extension that runs through December 16, 2026. According to the Review, interim planning director Emily Terrell set out this schedule at the October 13 meeting:
- November 6: environmental consultant EA Engineering due to deliver the Final Environmental Impact Statement for review.
- November 9: first reading of the draft Comprehensive Plan.
- December 1: updated Winslow Subarea Plan due for inclusion on the next council agenda.
- December 8: planned council adoption of the plan and the Final EIS.
The fallback is what planners call the builders' remedy, and it is narrower than it sounds. Under the statute, Commerce identifies deficiencies and the city gets a correction period. If the city does not make the amendments, or Commerce finds that the amended rules still fall short, the city becomes noncompliant. Under RCW 36.70A.835, a city found noncompliant cannot deny an affordable or moderate-income housing development. It also cannot approve one with conditions that substantially harm the project's viability or affordability. The rule does not cover all development. Qualifying projects must record covenants for at least 25 years that meet one of three standards: at least 20% affordable units, at least 50% workforce units, or all moderate-income units. The statute also exempts sites in critical areas and their buffers, shoreline areas where residential use is not allowed, and areas where neither the plan nor the zoning permits residential or mixed uses. The remedy applies only to affordable and moderate-income housing developments that carry those recorded restrictions.
Because this is a state statute with exceptions, any buyer or owner with a specific parcel in mind should confirm how it applies with a land-use attorney or the city's planning department. This post is general information, not legal advice.
Where this leaves a buyer this winter
If you're shopping for a single-family home, Winslow's rezoning probably won't add competing inventory soon. The September numbers show that segment taking in rising listings and still tightening, with the median at $1,300,000 and pendings up 75% from a year earlier.
If you're looking at condos or townhome-style living near the ferry, the market works differently. Supply is small, contracts slowed in September, and the zoning now allows taller, denser buildings with a required share of income-restricted units. A building planned under these rules would change the island's condo count more than any month of resale listings.
The High School Road corridor carries a related transportation question. On November 2, the city and 23rd District legislators asked Gov. Bob Ferguson to delay the proposed SR 305/High School Road roundabout during 2027–29 transportation budget planning. They cited ferry queues that back up through the intersection and asked for more traffic and safety analysis, as the Bainbridge Island Review reported. This is a request, not a decision. It concerns the same corridor whose zone now allows 75% lot coverage, or 85% for qualifying projects.
Quick questions
Does the interim zoning affect homes outside Winslow? The height, lot-coverage and inclusionary changes in Ordinance 2026-10 apply to the Central, Connection, Ferry Terminal and High School Road zones.
How long do the interim rules last? Six months from adoption, or until the permanent Comprehensive Plan, Winslow Subarea Plan and zoning code replace them.
What income levels does the inclusionary rule use? For projects of 10 or more units in the Ferry Terminal and High School Road zones: 10% of units at 50% to 80% of area median income and 10% at 81% to 110%.
If you're deciding between a house on the island and a condo near the Winslow ferry, the zoning map and the market data now point different ways, and we're glad to go through both with you. Connie Sorensen and our team follow Puget Sound island markets closely and can help you see where a specific property sits. Start Your Island Journey with a personal consultation.
