Washington is now third U.S. state with a rent cap
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Washington Gov. Bob Ferguson signed a measure into law Wednesday limiting annual rent increases to no more than 10% per year for many tenants statewide.
Why it matters: With the signing of House Bill 1217, Washington becomes the third state in the nation to enact a state-level rent stabilization law, after Oregon and California, according to advocacy groups who track such measures.
What's inside: Washington's rent-capping law, which takes effect immediately, will allow landlords to raise rent prices for most existing tenants by a maximum of 7% a year plus the rate of inflation or 10% — whichever is lower.
- The rent cap wouldn't apply to buildings that opened in the past 12 years or certain owner-occupied buildings, such as a triplex where the owner lives in one of the units.
- Landlords can reset rent at any level when a tenant moves out — a feature supporters say distinguishes the policy from stricter types of rent control imposed in some local jurisdictions, including New York City.
What they're saying: Under the new state law, "the days of gouging renters with massive rent increases are over," Michele Thomas of the Washington Low Income Housing Alliance told Axios.
- "However, rents are still too high and there's a lot more work we need to do," Thomas said.
The other side: Groups including the Rental Housing Association of Washington — which represents landlords — opposed the new law, arguing it would discourage new housing construction and reduce the number of rental units on the market.
- "This bill threatens housing availability and affordability, exacerbating the existing crisis," opponents wrote in a letter asking Ferguson to veto the measure.
Catch up quick: In 2019, Oregon became the first state to enact statewide limits on rent hikes, capping annual increases at 7% plus the rate of inflation.
- Oregon lawmakers later amended the policy to allow a maximum annual rent hike of 10%, similar to what Washington just adopted.
- California's rent stabilization law, which took effect in 2020, caps annual rent increases at 5% plus inflation or 10%, whichever is lower.
The fine print: The new Washington law also sets a stricter 5% annual cap on rent hikes for residents of manufactured and mobile homes.
Zoom out: Washington, D.C., has its own rent stabilization law, as do some local jurisdictions in New York, Maryland, Maine, California, New Jersey and Minnesota, according to the National Apartment Association.