Washington State reached a significant milestone in housing policy on May 7, 2025, as Governor Bob Ferguson enacted House Bill 1217, marking a transformative step forward. With the stroke of a pen, the state embarked on a new chapter in its approach to rent regulation, one that aims to protect tenants from excessive rent hikes while addressing the broader affordability crisis that has long gripped communities from Bellevue to Tacoma and Everett.

The new law, which went into effect immediately, introduces comprehensive rent control measures that will shape the dynamics of the rental housing market across the state, particularly in fast-growing regions like Eastside King County, Pierce County, and Snohomish County. While supporters applaud the bill for offering renters some much-needed relief, critics raise concerns about its potential long-term impact on housing supply and property investment.

In this blog post, we’ll break down what House Bill 1217 entails, explore its pros and cons, and examine how it could reshape the residential real estate landscape in three of Washington’s most dynamic counties.

What Is House Bill 1217?

House Bill 1217 introduces a statewide cap on annual rent increases for most residential rental properties. Specifically, it limits increases to either:

• 7% plus the rate of inflation, or

• 10% flat,
  whichever amount is lower.

This limit is scheduled to stay in effect for the next 15 years.

Manufactured home communities are subject to a stricter cap of 5% annually, and unlike the general provision, this limit comes with no expiration date. The law also extends the notice period landlords must give for rent increases from 60 days to 90 days, offering tenants more time to prepare for changes in housing costs.

Exemptions from the Law

Not all properties fall under the purview of HB 1217. The following are exempt:

• Newly constructed housing units less than 12 years old

• Owner-occupied duplexes, triplexes, and fourplexes

• Properties managed by public housing authorities

• Low-income housing developments

These carve-outs aim to strike a balance between protecting tenants and encouraging new housing development, though the effectiveness of this balance remains to be seen.

Benefits of Rent Control Under HB 1217

Supporters of the new law argue that rent control will provide much-needed stability for renters, particularly in high-demand housing markets where tenants face increasing financial pressures. Here's a closer look at the potential advantages:

1. Greater Predictability and Stability for Renters

Housing affordability has been a long-standing concern in Eastside King County, Pierce County, and Snohomish County. Cities like Bellevue and Redmond have seen rapid growth in housing prices, while Tacoma and Everett have experienced similar trends fueled by population growth and urban sprawl.

In Snohomish County, for example, the average fair market rent for a two-bedroom apartment saw a staggering 20% increase in a single year. By capping rent increases, HB 1217 provides tenants with a level of financial predictability that was previously lacking in the rental market.

2. Mitigating Displacement and Homelessness

Governor Ferguson has framed the legislation as a tool to combat housing insecurity. Sudden rent spikes often push families out of neighborhoods they’ve long called home, forcing them into longer commutes, lower-quality housing, or in some cases, homelessness.

This law aims to reduce displacement by keeping rents within a manageable range for more Washingtonians—especially those working in urban centers but living in outlying suburbs.

3. Inclusive Protection for Single-Family Renters

A noteworthy feature of HB 1217 is that it covers single-family rental homes, which are often excluded in other rent control frameworks. Since a significant share of renters—especially families—reside in these types of properties, the law offers a broader safety net.

This inclusion reflects a growing recognition that tenant protections shouldn’t be limited to apartments and multi-family complexes.

4. Immediate Relief

Unlike many policies that roll out over months or even years, HB 1217 went into effect immediately upon signing. This swift implementation signals a sense of urgency in tackling the state’s housing crisis and offers almost instant protection to renters currently facing lease renewals or upcoming rent increases.

Challenges and Concerns

While rent control may seem like a straightforward solution, real estate professionals, economists, and landlords have flagged several potential downsides. Here's a breakdown of the law’s criticisms:

1. Reduced Incentives to Build New Housing

The most vocal concern among critics is that HB 1217 could disincentivize real estate development. Sean Flynn, Executive Director of the Rental Housing Association of Washington, labeled the bill a “death knell” for the state’s rental housing market.

The logic behind this criticism is straightforward: when rental income potential is capped, developers may be less inclined to take financial risks on new projects, especially in areas with high construction and operational costs. This can ultimately lead to a tightening of the housing supply, exacerbating the very problem the law is meant to solve.

2. Financial Pressure on Small-Scale Landlords

While large real estate investment firms might be able to absorb the impact of capped rental increases, small landlords—who own just a handful of rental properties—may struggle. Costs for repairs, taxes, and insurance continue to rise, and if rents can't keep pace, these landlords might be forced to sell.

This trend, somewhat ironically, might lead to a decline in the availability of privately managed, affordable rental properties.

3. Legal and Administrative Burdens

HB 1217 introduces new legal and administrative hurdles for landlords. Not only must they comply with the rent increase cap, but they’re also required to issue 90-day notices for any rent hikes. Failure to comply can result in legal action by tenants or even enforcement from the Washington State Attorney General’s office, which can recover up to $7,500 per violation.

For landlords unfamiliar with the new regulations, the law adds complexity and potential legal exposure.

4. Risk of Deferred Maintenance

Capped rental income might lead some landlords to scale back on property maintenance or upgrades to cut costs. Over time, this could contribute to a decline in housing quality, particularly in older buildings that require more upkeep.

Tenants may find themselves living in more affordable units—but at the cost of reduced maintenance standards.

Regional Impact Breakdown

While HB 1217 applies statewide, its impact will vary based on regional housing dynamics. Let’s take a look at how the law could play out in the real estate markets of Eastside King County, Pierce County, and Snohomish County.

Eastside King County

Cities like Bellevue, Redmond, and Kirkland are part of the booming Eastside corridor—home to major tech employers, high median incomes, and soaring real estate prices. Renters in these cities will likely benefit from immediate relief, particularly as demand continues to outstrip supply.

However, this area also relies heavily on new development to accommodate its growing population. If developers view rent control as a barrier to profitability, we may see a slowdown in new project starts, which could lead to further inventory shortages in the years ahead.

Pierce County

In Pierce County, especially around Tacoma, affordability has been a growing concern. While housing prices are somewhat lower than in King County, they've been climbing steadily as more people move south in search of cheaper options.

Rent control could help stabilize housing costs for existing residents, but it may also deter much-needed investment in new housing, particularly in underserved neighborhoods. This tradeoff between tenant protection and long-term supply growth will be especially critical in Pierce County’s future housing outlook.

Snohomish County

Snohomish County, including cities like Everett and Lynnwood, has some of the highest rental rates in the state relative to income. Many residents commute to jobs in Seattle and the Eastside, making the area attractive but increasingly unaffordable.

HB 1217 may bring short-term affordability relief here, but many housing advocates caution that unless it’s paired with aggressive pro-housing supply policies—like zoning reform and fast-track permitting—it won’t solve the root problem of insufficient housing.

What's Next for Washington’s Housing Market?

The passage of House Bill 1217 signals a bold move by Washington lawmakers to address a complex and pressing issue. However, rent control is just one piece of the puzzle. For the law to succeed in the long term, it must be complemented by policies that:

• Encourage new housing construction

• Streamline permitting and zoning processes

• Support small landlords through tax relief or grants

• Enforce tenant protections while maintaining housing quality

The success of HB 1217 will hinge not just on its implementation, but on the state’s ability to adapt and respond to the ripple effects it creates in the housing ecosystem.

Final Thoughts

Washington’s new rent control law offers a lifeline to renters struggling with skyrocketing housing costs, especially in high-growth regions like Eastside King County, Pierce County, and Snohomish County. By placing a ceiling on rent increases, the state is hoping to curb displacement and offer residents more stability.

Yet the law is not without its challenges. Reduced investment, legal complexity, and pressure on small landlords could pose significant hurdles. Balancing these competing interests will require ongoing adjustments, smart policy design, and open dialogue among lawmakers, tenants, landlords, and developers alike.

For now, HB 1217 stands as a landmark in Washington housing legislation—one that could inspire similar efforts in other states or become a cautionary tale of unintended consequences. Only time will tell.

If you're a renter or property owner in Eastside King County, Pierce County, or Snohomish County and want to understand how the new law might affect you personally, reach out to George Moorhead, your real estate expert, who can help you navigate this evolving landscape.