As housing affordability continues to deteriorate across the United States, several states are responding with new rent control legislation. In May 2025, Washington became the latest to enact statewide rent caps in an effort to slow surging rental costs and address the growing housing crisis.
Washington enacts new rent control law
On May 7, 2025, Washington Governor Bob Ferguson signed House Bill 1217 into law, making it one of the most comprehensive rent stabilization measures in the country.
The law limits rent increases to the lesser of 7% plus inflation or 10% annually, beginning January 1, 2026. It applies to most rental properties, including single-family rentals. For manufactured housing communities, the annual cap is 5% plus inflation, or a maximum of 7%.
The legislation passed after months of debate and growing pressure from tenant advocacy groups and economists, who say rent prices have outpaced wage growth in the state’s urban centers.
“Washington renters have faced unsustainable rent increases for too long,” Ferguson said during the bill signing. “This law ensures greater housing stability for working families.”
Why states are turning to rent control in 2025
Washington is not alone. Other states have taken similar steps to slow rental inflation:
- Oregon was the first state to enact statewide rent control in 2019. Its 2025 limit is 10% or 7% plus inflation, whichever is lower.
- California’s rent cap under AB 1482 limits annual increases to 5% plus inflation, up to a maximum of 10%.
- Minnesota, New York, and Colorado are also considering expanded or newly proposed rent stabilization measures this year.
The shift comes amid record-high rents in major U.S. cities, limited housing supply, and increased demand from a growing renter population. In many regions, renters now spend more than 35% of their income on housing—well above the federal definition of affordability.
What the new rent law means for Washington renters
The Washington law includes specific rules and protections:
- Applies to renewal leases and month-to-month agreements
- Excludes new construction built within the past 10 years
- Allows landlords to petition for higher increases if facing extraordinary expenses
- Includes enforcement provisions through the Washington Attorney General’s office
For renters, the cap provides predictability in housing costs and may prevent displacement from communities experiencing gentrification or rapid growth.
How landlords are reacting
While tenant groups have praised the legislation, some landlords and housing developers warn it could have unintended consequences.
“Policies like this can discourage new construction and investment in the rental market,” said Lisa Jensen, a Seattle-area landlord. “We support fairness, but blanket caps may create long-term supply issues.”
Opponents argue that rent caps may reduce maintenance budgets or incentivize landlords to convert properties to short-term rentals. Supporters contend that thoughtful regulation can balance tenant protections with continued development.
What’s next in the national housing crisis?
The housing crisis remains a top concern in 2025, especially in fast-growing states like Texas, Florida, and Arizona. Rising mortgage rates, supply chain bottlenecks, and labor shortages have delayed new housing starts, worsening the affordability gap.
Experts suggest that rent control is only part of the solution. Broader strategies—such as zoning reform, increased federal funding for affordable housing, and public-private development partnerships—will be critical to easing long-term pressures.
Key takeaways
- Washington’s rent control law takes effect January 2026, capping most rent hikes at 7% plus inflation.
- Other states including Oregon and California have similar policies in place.
- The trend reflects growing urgency to stabilize rental housing amid the ongoing affordability crisis.
For updates and full policy details, visit HUD.gov.