After a protracted battle, Washington State lawmakers voted Sunday to limit annual residential rent increases to no more than 10 percent, positioning the state to become the third in the country to adopt statewide rent regulations.
What the Bill Does
Among the key provisions of House Bill 1217:
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Annual rent increases would be capped at 7 percent plus the rate of inflation, or 10 percent in all — whichever is less.
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A flat annual increase of 5 percent would be applied to people who own homes in mobile home parks and rent the land on which they sit.
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Only lease renewals would be affected by the new measure. Landlords would be allowed to increase rents at will when properties become vacant.
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The rules would not apply to new buildings for the first 12 years they are occupied.
The Argument in Favor
Between 2001 and 2023, median residential rents in Washington State rose by 43 percent, adjusted for inflation, outpacing the 26 percent rise in renters’ incomes over the same period, according to the Center on Budget and Policy Priorities, a national research group.
And while there is broad consensus that more housing needs to be built, supporters of the caps say they can offer short-term predictability and protections for tenants who have been forced to move because of steep price increases.
The issue has long been a priority for Democrats, and the Legislature nearly passed a similar bill in 2024. But this year, with a more turbulent economy, supporters say the problem has never been more urgent.
“At a time when people worry whether they’ll lose their federal benefits, we can help assure them that here in Washington you won’t face an excessive rent hike,” said Emily Alvarado, a Democratic state senator and one of the bill’s sponsors, during a floor debate Friday night.
The Argument Against
Most economists have historically been skeptical of rent control, saying it does more harm than good. But that has started to change somewhat in recent years.
In Washington, opponents say rent regulations would discourage new development and reduce the availability of rental homes. And for years, Republicans, joined by moderate Democrats, have scuttled various proposals.
But progressives gained more clout after last year’s elections and have pushed an agenda that also includes tax increases and spending cuts.
Andrew Barkis, a Republican state representative, said in an interview that the new bill was “driven by ideology.” He said that an earlier version, which called for a 10 percent cap, plus inflation, and exempted most single-family home rentals that were not owned by a corporation, was better. That version had cleared the Senate.
“You put an artificial cap on this, I can guarantee you that every single rent is going to go up,” Mr. Barkis said
How It Fits Into the National Landscape
Rent regulations have typically been embraced by municipalities, not states. More than 300 local governments regulate rents, including New York City, Los Angeles and San Francisco.
When states get involved, it has often been to prevent local jurisdictions from enacting rent regulations. More than 30 states have done that — including Washington, which blocked local rent regulations in 1981, when Republicans last controlled the governor’s office and Legislature.
The new bill — which survived some last-minute procedural drama and was passed on Sunday, the last day of the legislative calendar — would not lift that ban. Instead, it is aimed at protecting tenants throughout the state, including those in towns that may be unable or unwilling to take their own action.
Until now, California and Oregon had been the only states to adopt statewide rent regulations, both passed in 2019. The cap is 7 percent plus the inflation rate in Oregon, and 5 percent plus inflation in California; both states set a maximum of 10 percent. But there are efforts in both states to lower those caps.
What Happens Now?
The bill heads to Gov. Bob Ferguson, a Democrat who took office this year. While Mr. Ferguson has not stated his intentions, many legislators and lobbyists anticipate he will sign the legislation. It would take effect immediately.
