Washington Democrats push through rent cap bill after negotiations

Washington lawmakers on Sunday passed a measure to cap annual rent increases, bringing a controversial legislative fight to a close on the final day of the 2025 session. But it’s unclear if Governor Bob Ferguson will support the rent cap bill.

House Bill 1217, the product of a late-session compromise between House and Senate Democrats, will cap rent hikes at 7% plus inflation, or 10%, whichever is lower. The bill also bars landlords from raising rents during the first 12 months of a new tenancy. Single-family homes are not exempt from the cap.

The Senate approved the final version on a 27-20 vote, with two Democrats joining Republicans in opposition. The House followed with a 54-44 vote, where five Democrats broke ranks. No Republicans voted in favor.

“This is one of the most productive sessions on housing affordability our state has seen,” Sen. Jessica Batman, D-Olympia, said in a statement. “It’s the result of strong coalition-building in and outside the Legislature, bipartisan collaboration with our Republican colleagues and sustained, long-term engagement with the community and our constituents who are so deeply affected by these issues. I’m proud of what we’ve accomplished so far this year and know that we have more work ahead.”

Washington rent cap developed over weeks of negotiations

The bill’s final version reflects weeks of negotiations.

Originally, HB 1217 capped rent increases at 7% annually. A Senate amendment raised the limit to 10% plus inflation, but after concerns from House Democrats, a conference committee struck a compromise late Thursday.

The legislation also establishes a 5% cap on rent increases for manufactured and mobile homes, with no expiration date. For most other residential properties, the rent cap is set to expire after 15 years unless renewed.

Beginning June 1, 2025, the state Department of Commerce will be required to publish the allowable maximum rent increase annually, based on the Seattle-area Consumer Price Index. Landlords must also provide tenants with 90 days’ notice before raising rent.

New construction is exempt from the cap for up to 12 years, as are properties owned by public housing authorities and certain nonprofit organizations. Some small, owner-occupied properties, such as duplexes or homes with accessory dwelling units, are also exempt.

Will Governor Ferguson sign the rent cap bill?

Republicans blasted the measure, arguing it addresses symptoms rather than causes.

“Without supply, rents go high,” Rep. Sam Low, R-Lake Stevens, said during floor debate. He urged colleagues to focus instead on removing regulations that he said drive up the cost and difficulty of building new housing.

The bill now heads to Gov. Bob Ferguson, who has not publicly stated whether he will sign it.

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