As housing prices rise in Kirkland, some developers are seeing micro-apartments as one possible solution for low-income residents to live blocks away from where they work.

The future site of one such micro-apartment complex is currently under construction at 450 Central Way, where Natural and Built Environments intends build Arete, a 290 unit complex similar to The Retreat, its micro-apartment complex in Redmond. At the Sept. 11 Kirkland Chamber of Commerce Luncheon, a group panel discussed the future of Kirkland’s housing situation.

Robert Pantley, head of Natural and Built Environments, believes these apartments will make it possible for low income individuals to live in Kirkland. The average price of a studio apartment in Kirkland is $1600, plus utilities and Internet, while these micro-apartments typically go for $795 including utilities, according to Pantley. The micro-apartments consist of a master bedroom-sized apartment, with a shared kitchen community area. Although the complex will have parking spots available, Pantley anticipates the majority of them will either not drive or not own a car.

“They’re not driving from Puyallup anymore,” he said. “They’re walking to work.”

Many Kirkland residents have expressed doubts about the parking situation for the micro-apartments and parking has been a big issue for the city in the downtown core.

Pantley said aside from reducing traffic on the roads, the apartments will help keep tax revenue inside the city and provide further business for retail stores.

Housing prices in Kirkland have increased by six percent in just one year, according to Zillow, which also predicts prices to climb an additional 5.6 percent next year. The median house price is $460,000, compared to $474,000 at its peak in 2007. However, the 2007 figure does not include residential neighborhoods added to Kirkland as part of the 2011 annexation. In December 2011, the median house price was $339,000.

Doug Davis, president of Hallmark Realty, said the increasing house value makes it difficult for new owners to get into the market.

“It’s nice for property owners, but it’s not great for people who want to live here,” Davis said.

It is also difficult for low income residents looking to rent, as the median rent price in Kirkland is $1,886, according to Zillow. The situation will also worsen as both the city and state population grows. A 2011 report by the state’s Office of Financial Management predicts by 2040 there will be two million more people living in the state. Under the Growth Management Act, every county is required to adopt an urban growth boundary, in which areas designated as urban are intended to absorb more density than rural areas. As a result, cities such as Kirkland will experience greater population density.

Another possible solution for future housing in Kirkland is to concentrate density around transit centers, according to David Barnes from the city of Kirkland’s Planning Department.

“We have to make sure they have the ability to get around,” he said.

The city is currently working on an update to their comprehensive plan, in which they anticipate absorbing density as part of the state’s overall growth.

“It’s not ‘How can you get by?’ but ‘How can you have a livable community’?” he said.

Additionally, housing designs can allow for interior units the owner can rent out. The city’s land use policies, Barnes said, can also change as it becomes necessary.

“We will adjust land use strategy as time goes by to accommodate housing,” he said. “If our needs go beyond our wildest dreams, we can adjust to that.”