Rental affordability debate ramps up in Olympia
Rental properties are a great source of income, but given inflation and cost of living, some Washingtonians are concerned that rental increases may lead to homelessness if rental and fee increases aren't capped. Meanwhile, property owners say their costs are increasing as well and too low of a cap may make running rental properties unsustainable.
JOEL MARTIN/COLUMBIA BASIN HERALD
OLYMPIA — As many Washingtonians struggle to meet rapidly rising housing costs, companion rent stabilization bills aiming to cap rent and fee increases have sparked significant debate amongst lawmakers, renters and housing developers. The House version passed the Housing Committee in a 9-8 vote and was heard in Appropriations Monday.
“No bill is a silver bullet,” Sen. Emily Alverado, D-West Seattle said. “But this bill is the single most cost-effective way that we can immediately stop the devastating impacts of excessive rent increases on renters and manufactured homeowners in Washington. The legislation is a compromise.”
If enacted, HB 1217 would prohibit any rent and fee increases at 7% within the first 12 months of residency and during any 12-month period thereafter. It would provide additional protections by requiring landlords to notify tenants annually of any price increase and limit move-in, security deposit and late fees. Furthermore, it would allow the attorney general to enforce violations if they occurred.
Although the bill passed its first legislative hurdle, it was met with stern pushback from Republicans concerned about its potential impact on housing supply.
“Everyone agrees on the problem, but unfortunately there's only one side whose voice is at the table in driving these policies forward,” Rep. Jeremie Dufault, R-Selah said in closing statements.
Many opponents claimed it would negatively impact investments in housing projects.
Kevin Wallce, President of the Washington Property Business Association, explained various components of the bill would add on administrative burden and legal risks to the operation of rental units, forcing many, especially mom and pop property owners, out of the market.
“The risk is too great for the reward,” Wallace said.
Wallace also noted that the current bill does not consider the rate of inflation. He furthered, as net operating income becomes stagnant while inflation drives operating expenses, rent caps would produce artificial limits, ultimately reducing supply and increasing prices for unrestricted rentals.
“I personally own rentals and when my taxes go up and my costs go up, I pass it on to my tenants — just like any other business would do,” Kevin Burgess, managing broker at Moses Lake Windermere Real Estate, said.
According to the National Low Income Housing Coalition, Washington has the fifth-highest housing wage in the nation, meaning an individual needs to make about $40.32 an hour just to afford a two-bedroom rental home. Proponents of the bill argue they can no longer wait for more housing development but need immediate assistance as many People of Color and seniors living off of fixed income become increasingly vulnerable.
Duana Johnson from the Resident Action Project, who testified in favor, shared she has moved five times in four years due to rent increases.
“I'm a disabled veteran with PTSD and we are domestic violence survivors and trying to maintain housing stability and take care of my children is non-existent when we are forced to move repeatedly,” said Johnson.
Nancy Sapiro from the Puget Sound Advocates for Retirement Action also testified in support, highlighting the underlying impact of rent hikes on seniors.
“Many are forced to skip medications, cut down on food purchases, reduce heat in their homes or to move multiple times,” Sapiro stated.
Sapiro emphasized the importance for seniors remaining stable in their communities, not only to be near loved ones but also to receive extra support as they age.
A fiscal note was presented to the Appropriations Committee, estimating a cost of $1.9 million general fund state for the 2025-2027 biennium with enforcement policies conducted by the office of the attorney general as the biggest driving cost factor. The state is facing a $12 billion budget deficit this session, causing significant money constraints across all agencies.
Wallace urges there needs to be a better balance between rent caps and housing development. He suggests lawmakers should focus on reducing regulatory burdens on private housing sectors to encourage faster development while also finding a way to provide targeted rental assistance.
“I'm hoping we can work together on the details of the bill … and try to find that happy medium,” Wallace said.
The Washington Association of Realtors declined to comment on the bill.