Follow-Up to last quarter's article: “Rent Control – A Well-Intentioned Quagmire or a Trojan Horse?”

Earlier this year, we raised concerns about the potential long-term impacts of rent control in Washington. At the time, it was just a proposal. Now, it’s law.

With the passage of HB 1217, rent increases in Washington are now capped at 7% plus CPI or 10% annually, whichever is lower. While well-intentioned, this legislation brings with it a new set of market dynamics that REALTORS® must be prepared to navigate, especially as ripple effects begin to show locally.

We warned in Part 1 that rent control often results in unintended consequences. What we’re seeing now, in just the first few months since passage, confirms many of those patterns. Small landlords are beginning to sell. Listings for entry-level rental units are thinning. And annual rent increases, once discretionary, are becoming routine as landlords hedge against future constraints.

None of this is theoretical. It’s happening now.

In cities like Berkeley and Cambridge, rent control led to decreased maintenance, condo conversions, and ultimately, fewer rental options. This was especially true for middle-income families. In St. Paul, new housing permits dropped 80% after rent control passed. Closer to home, we’re already seeing landlords adjust their behavior. Not out of defiance, but out of necessity.

The law prohibits multiple increases per year, but it doesn’t prevent high starting rents. Nor does it address added service fees. Many property owners are shifting their strategies accordingly: maximizing initial rents, charging for amenities, and trimming reinvestment into aging properties. The result is a tighter rental market, less mobility, and fewer opportunities for new tenants.

That matters to us.

As practitioners on the front lines of housing, REALTORS® are now operating in a new environment. Renters may stay put longer. Sellers may be driven by fear or fatigue. And prospective buyers may enter the market for reasons they didn’t anticipate just months ago.

This isn’t about vilifying rent control. It’s about recognizing that it changes the equation. It alters incentives. And historically, it hasn’t always delivered the long-term affordability or stability it aims to provide. In some markets, it even accelerated the very pressures it was meant to relieve.

For our members, the opportunity now is to be informed, adaptable, and ready to guide clients. Whether they’re considering selling, staying, or stepping into homeownership for the first time.

If you’d like a deeper dive into this issue, including historical trends, national case studies, and what renters can do to get ahead, check out The Rent Control Ripple Effect in the inaugural issue of Porchlight: The Tri-Cities’ First True Housing Magazine, arriving soon.