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:

• Annual rent increases would be capped at 7 percent plus the rate of inflation, or 10 percent in all — whichever is less.

• 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.

• Only lease renewals would be affected by the new measure. Landlords would be allowed to increase rents at will when properties become vacant.

• 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.