04/09/2026
I was interviewed yesterday about this creative solution for affordable housing. I am one of the "Approved Realtors" on this project. There are at least 2 locations in the works, with many more in the pipeline. Not everyone wants to live in a "canyon" of multifamily buildings. These are buildings that already exist in desirable neighborhoods. The structures of the LLCs can vary, so it's a rather nimble and flexible way to increase the number of affordable units in our area. Pretty genius of to come up with this solution!
A New Path to Home Ownership
By Steven Smalley 
A quiet shift is taking shape in Seattle’s housing landscape, one that reflects how people are already living but challenges how they have traditionally owned. In neighborhoods long defined by single-family homes, a new model is attempting to bridge the growing gap between renting and ownership.
At the center of that effort is reSpace, a co-homeownership concept that aims to turn shared living into shared equity.
Katrina Romatowski, a longtime real estate professional, did not begin with a development plan. She began with a question.
“When I first started looking at this, I did some focus groups about how people are living now,” she said. “I saw research that said a third of Americans are living with people who they are not in a romantic relationship with, and they are not their adult children. A third of Americans are living with roommates.”
That reality, she says, is already visible across Seattle. Rising housing costs have pushed more people into shared arrangements, often out of necessity rather than preference. The structure, however, has remained largely unchanged.
“A lot of people are living in what’s called house hacking,” Romatowski said. “One person buys a house, rents out the rest, and lives in one room. It gives some people the ability to buy, and others affordability. But only one person owns. Everyone else is just renting.”
The reSpace model attempts to flip that equation. Instead of a single owner collecting rent, multiple residents share ownership in the property itself.
“What reSpace has done is created a model where everyone gets to share in that upside,” she said. “Everyone gets to share in the ownership. And they get to do that at a cost that’s similar to what they would pay for a one-bedroom apartment.”
The concept builds on a behavior that already exists. Friends buy homes together. Siblings pool resources. Informal co-buying is not new. What has been missing is a structure that allows flexibility.
“The way people have to do it now is one mortgage and one title,” Romatowski said. “It’s like being financially married. If one person’s life changes, the whole property has to be sold, or someone has to refinance everything. It creates friction.”
In the reSpace model, ownership is divided into shares tied to a property-specific LLC. Each owner has an individual financial stake, with separate obligations and the ability to exit independently.
“You have your own mortgage that’s separate from everybody else,” she said. “You can sell without affecting the other co-owners, and you’re not financially responsible for anyone else.”
That flexibility is central to the pitch. It allows shared living without the long-term entanglement that has traditionally made co-buying risky.
The timing of the model aligns with broader policy changes across Seattle. New zoning rules now allow increased density in neighborhoods that were once limited to a single home.
“The city has new rules for density, and it varies by zone,” Romatowski said. “A house can now have multiple units on a single-family lot.”
Rather than replacing neighborhoods with large-scale development, she sees an opportunity to work within their existing character.
“There is a different life that’s available in a single-family neighborhood versus a high-rise,” she said. “There’s a reason those neighborhoods are so desirable. What we’re doing is increasing density while maintaining the feel of those neighborhoods.”
Kim Mulligan, a real estate agent working with Romatowski, sees that balance as a key advantage.
“She’s creating five or six households in a place where originally it just had one,” Mulligan said. “It’s creating density without changing the exterior of the building. You get to live in a very different neighborhood than one that has high density.”
Early projects reflect that approach. In Ballard and Leschi, single properties are being transformed into multi-suite homes, often with shared kitchens, gathering areas, and outdoor spaces, alongside private bedrooms, bathrooms, and laundry.
The numbers are striking in a city where affordability has become a defining issue. With the median price of a single-family home hovering near $975,000, entry into ownership has slipped out of reach for many.
“Even tear-downs are $750,000,” Romatowski said. “We’re looking at a starting point of $150,000 to $175,000. That’s affordable. That’s affordable for people who have real jobs.”
That lower barrier to entry is paired with a dramatically different down payment structure.
“You only need $10,000 to get in,” she said. “That’s your entry point to co-ownership. From there, the monthly payment covers your share of the loan, taxes, insurance, and everything else.”
Unlike renting, those payments build equity. Owners hold a stake in the property and benefit from appreciation over time. If they choose to leave, they can sell that stake, with support from the company and approval from co-owners.
For Mulligan, that distinction is critical.
“I think this is a private party solving an issue that’s been a problem for a long time,” she said. “People are going to be able to walk away with some equity. Homeownership gives you security. It gives you that first step on the property ladder.”
The model also attempts to address a broader economic concern. Romatowski points to the shrinking middle class and the role homeownership has historically played in building stability.
“We are very quickly becoming a nation of very rich and very poor,” she said. “The thing that historically created the middle class is homeownership. As ownership disappears for younger generations, so does the ability to create generational wealth.”
That shift is already shaping expectations.
“In the focus groups, people would say very casually, if we live where we want to live, we will never be able to own,” she said. “There’s a new perception among young people that that’s just the way it is. That’s very disturbing.”
Her own experience informs that perspective.
“By the time I graduated high school, I had lived in more than 20 houses,” she said. “We never lived in a home that anyone owned. I thought ownership just wasn’t for us. When we finally bought our first house, it changed everything. I began to understand assets.”
Now, she sees a generation facing even steeper barriers.
“I have kids in their mid-20s who have no way of getting a job and buying a home here,” she said. “I think it’s our responsibility to find a path to homeownership.”
reSpace is betting that path lies not in scaling traditional models, but in restructuring them entirely.
“Affordability isn’t a discount,” Romatowski said. “It’s a restructuring.”
The company is moving quickly. With two projects nearing completion and more in development, the goal is to scale the model across Seattle.
“Our intent is to have 10 complete in the next 24 months,” she said. “Each one has about eight suites. Then we’re looking at 100 over the next three years.”
Whether the model can scale remains an open question. Co-homeownership introduces new dynamics around governance, resale, and long-term value. It also requires buyers to embrace a different understanding of what ownership looks like.
Still, the early response suggests demand is there, driven not just by younger buyers but by a wide range of people seeking flexibility, affordability, and community.
Romatowski believes the shift is already underway.
“The way we’ve been thinking about this,” she said, “it’s a new starter home.”
And in a city where the traditional starter home has all but disappeared, that idea may find a growing audience.
