Cap on rent increases across Washington is signed into law

Washington Governor Bob Ferguson signed House Bill 1217, which limits annual residential rent increases to a maximum of 10% or 7% plus inflation, effective immediately. The law also imposes a 5% cap on rent increases for manufactured homes, with no expiration date. Under the new legislation, landlords cannot increase rent during the first year of a tenancy and must now provide 90 days' notice before any rent hike goes into effect. Critics, including Republican lawmakers and housing industry representatives, contend the rent cap will stifle development and lead to increased costs for tenants in the long run. Ferguson stated that the cap aims to protect renters from excessive rent increases in one of the most expensive housing markets in the country.

The law is part of a suite of bills designed to facilitate housing development and increase homeownership opportunities. The legislation faced significant debate before passing, with negotiations between chambers resulting in a compromise on the cap. This move represents a long-awaited effort by many Democrats to address ongoing housing affordability challenges in Washington.