Dem Gov Bob Ferguson signs rent control into Washington state law

On Wednesday, Washington Governor Bob Ferguson signed rent control into law. Ferguson signed HB 1217, which follows the failed examples of states like California, Oregon, and New York in implementing the policy in an attempt to cap rent increases. The so-called “rent stabilization” law is instead poised to stifle housing development, drive out small landlords, and hurt the very people it claims to help.

While the final version of the bill caps rent increases at 10 percent plus inflation — a rise from the original 7 percent — and exempts single-family homes, critics argue these concessions do little to salvage a fundamentally flawed policy that won’t address housing affordability in the state. State Senator Emily Alvado, the prime sponsor of the bill, is facing an ethics complaint for allegedly "engaging in activities incompatible with public duties and receiving compensation for official duties" for receiving a six-figure salary from Enterprise Community Partners, an affordable housing non-profit that gets taxpayer money from the state of Washington.

Earlier this year, the State Senate approved the final version 27-20, with two Democrats joining all Republicans in opposition. The House followed with a 54-44 vote, where five Democrats broke with their colleagues. No Republicans voted in favor of the flawed legislation.

Opponents warn that rent control does not solve homelessness or improve affordability. States like California, New York, and Oregon, where similar policies are in place, continue to grapple with spiraling homelessness and rising housing costs. These measures may stabilize rents for a select few, but they also signal to investors and developers that Washington is no longer a friendly place for housing investment.

"This bill is a catastrophe not just for residents and housing providers, but for the entire state economy,” said housing advocate Sean Flynn in an interview with KOMO News. “It’s a big, bright sign to investors not to put their money here because no investor wants to be in an environment where the returns can be capped artificially by a government.”

The damage won’t stop at big investors. Small landlords, who often provide the most affordable rental units, are expected to take the hardest hit. Unlike large corporations, these property owners don't have the financial flexibility to absorb profit losses. Faced with capped returns, many may choose to sell or leave the rental market entirely, further shrinking housing supply and making the crisis worse.

Flynn also emphasized that the law fails to address the real problem: a lack of housing units. “Rent control will not help that problem,” he said. “Because rent control doesn’t put any money back in your pocket.”

Rather than incentivizing the construction of new housing, HB 1217 punishes those who provide it. It creates a false sense of security while pushing the state further away from the real solution: increasing housing supply through smart zoning, streamlined permitting, and pro-development policies.