For the first time in state history, Washington has put a ceiling on how much landlords can raise the rent.
Under a new law signed in May, most annual rent increases are now capped at 10%, with a stricter 5% limit for mobile home parks. It’s a major policy shift in a state that has long avoided rent control, and depending on your vantage point, it’s either a step toward stability or a move that could create new challenges.
Supporters say the caps offer much-needed predictability for renters, many of whom have faced steep and sudden hikes in recent years. The idea is simple: make it easier for tenants to plan their budgets, reduce displacement, and curb the worst cases of price gouging.
But critics argue that the new law could have unintended consequences. Some landlords are expected to raise rents more frequently (and to the legal maximum) simply to stay ahead of future uncertainty. Others may opt to sell their properties altogether, reducing rental inventory. And in a development landscape already burdened by high interest rates and regulatory hurdles, there’s concern the cap could chill new construction.
To ease some of those concerns, the law includes certain allowances: new construction is exempt for 12 years, and landlords can reset rents to market rate between tenants.
Even with the law’s special provisions, concern exists about the impact on real estate investment and development. Prior to the new rules, some developers struggled to gain investor interest and the number of applications for building new apartment complexes in Seattle was already declining.
That said, for thousands of renters across the state, knowing what their next lease renewal will bring is a meaningful shift — maybe not a perfect fix, but a moment to breathe in a market that hasn’t offered much of that lately.
This post was based on information found on The Seattle Times.
