View of the State: A Legislative Update for Washington REALTORS®

The 2025 legislative session is well underway, and Washington REALTORS® (WR) is actively engaged in advocating for policies that protect homeownership, support housing development, and push back against harmful proposals that could negatively impact our industry. From the recently concluded Legislative Days to the key bills on the table, this update provides a look at the issues shaping Washington’s real estate landscape.

Legislative Days 2025 Recap

Washington REALTORS® Legislative Days 2025 was a resounding success, bringing together over 600 REALTORS®, including more than 200 first-time attendees, at the Little Creek Casino. We extend our appreciation to the Squaxin Island Tribe for their hospitality in hosting this impactful event. If you’ve never attended this event, please put 2026 on your calendar. Many first-time attendees are simply mesmerized by all the behind the scenes lobbying efforts in place on our behalf as Realtors.

This year’s event featured high-level discussions, committee meetings, networking opportunities, and powerful keynote speakers, all centered on WR’s advocacy priorities. Members met directly with legislators to advance REALTOR® priorities, including critical housing policy and tax-related concerns.

Key Highlights:

• 2024 Margo Wheeler Aspiring Leader Award was presented to Whidbey Island REALTOR® Erin Neilon.
• RPAC Awards celebrated top contributors, with Tri-City Association of REALTORS® earning Highest % Over Goal and Most $100+ Investments for associations with over 1,000 members.
• Leadership Installation: WR’s 2025 President, Leadership, and State Directors were officially sworn in, committing to a year of strong advocacy for our industry.

Keynote Takeaways:

• NAR CEO Nykia Wright & NAR President Kevin Sears discussed leadership, industry challenges, lawsuits, and the future of NAR.
• Lieutenant Governor Denny Heck addressed Washington’s housing crisis, advocating for expanded housing solutions.
• Joe Harris, NAR VP of Government Advocacy, emphasized the importance of REALTOR® engagement in shaping housing policy at every level.

Washington REALTORS® Legislative Priorities

WR’s lobbying team is actively engaged in three core areas of legislative focus: Pro Housing Policy, Fiscal Policy (No New Taxes), and Other Bills Impacting Real Estate. Here’s where things stand.

Pro Housing Policy: Expanding Supply & Homeownership Opportunities

1. Lot Splitting/Subdivision Reform (HB 1096 – Support)
   • Simplifies the process for homeowners to split lots, enabling more middle housing options.
   • Ensures new lots are buildable and streamlines the permitting process to increase homeownership opportunities.
2. Rural ADUs (HB 1345/SB 5413 – Support)
   • Allows detached accessory dwelling units (ADUs) in rural areas to address housing shortages.
   • Regulations ensure proper water, sewage, and environmental protections are met.
3. Condominium Liability Reform (HB 1403/HB 1516 – Support)
   • Adjusts Washington’s strict liability laws that discourage condo development.
   • Introduces exemptions and alternative warranties to encourage affordable condo construction.
4. Transit-Oriented Development (HB 1491 – Neutral)
   • Encourages dense housing development near public transit hubs.
   • WR seeks amendments to ensure affordability incentives instead of strict affordability mandates.

Fiscal Policy: No New Taxes

1. Real Estate Excise Tax (REET) – Oppose
   • Washington has one of the highest REET rates in the country. WR opposes any increases that would further drive up housing costs.
2. B&O Tax – Oppose
   • REALTORS® do not benefit from small business B&O tax credits, making this tax a major burden on the industry. WR opposes any increases.
3. Sales Tax on Services – Oppose
   • Applying sales tax to real estate services would increase closing costs and make homeownership less affordable.
4. Capital Gains Tax – Oppose
   • WR supports maintaining real estate’s exemption from Washington’s 7% capital gains tax.
5. Property Tax Cap Increase (1% to 3%) – Oppose
   • Increasing property tax limits would disproportionately burden homeowners and buyers. WR supports the existing 1% cap and voter approval for increases.

Other Bills Impacting Real Estate

1. Washington Center for Real Estate Research (HB 1552 – Support)
   • Increases funding for critical housing research at the University of Washington, extending support through 2035.
2. Rent Control (HB 1217 / SB 5222 – Oppose)
   • This is the big one. WR opposes rent control, arguing it reduces investment in rental housing and worsens housing shortages.
   • HB 1217 is moving quickly through House committees and is likely to pass. This will have major implications for rental housing in Washington.
   • Instead of rent caps, WR advocates for policies that increase rental supply, which is the real solution to affordability.
3. Homes for Heroes (HB 1552 – Support)
   • Sponsored by TCAR’s very own Representative April Connors!
   • Provides down payment and closing cost assistance to first responders, health care workers, and veterans.
   • This bill would help essential workers become homeowners in the communities they serve.

Final Takeaway: Rent Control is Coming

While WR is fighting hard for pro-housing policies and tax protections, the rent control debate is the most pressing issue this session. Despite WR’s opposition, HB 1217 is gaining momentum and is expected to pass.

This is a defining moment for Washington’s rental market. Rent control policies often discourage investment, reduce available rental housing, and fail to address the true issue—lack of supply. REALTORS® need to stay engaged and vocal in advocating for policies that encourage more housing development, not price controls that historically backfire.

Advocacy is our industry’s backbone, and WR is working tirelessly to protect our business and our clients. Your involvement strengthens our collective voice—let’s continue to shape the future of housing together!