issue area reports | transportation, housing and land use the time that work is performed instead of when the project is bid. This could have massively increased infrastructure project costs. The bill passed the Senate 35-13 but stalled in the House.
housing and land use
Washington will need to add at least 1.1 million homes over the next 20 years to meet demand, and more than half of them need to be affordable for residents at the lowest income levels. In 2025, the Legislature did very little to help increase housing supply in the state— and a lot to hurt it.
Rather than taking steps to boost housing options and bring down costs, lawmakers passed a rent control bill that disincentivizes new construction and investment in residential real estate. The bill caps annual rent hikes at 7 % plus inflation or 10 %, whichever is lower. Rent increases are prohibited in the first year, and landlords must give tenants 90 days’ notice before raising rent.
One of the most damaging parts of the bill concerns the limited exemptions for new construction. While builders had requested a 20-year exemption from the new regulations, the bill includes a much shorter exemption period of 12 years. Considering lenders in other markets have refused to underwrite loans for projects that aren’ t free of rent control for at least 25 years, this could make it difficult for builders to obtain financing. Some financiers have already said they will no longer finance multi-family projects in Washington because they don’ t want to be locked in on the revenue side when operators may have uncontrolled costs. Faced with financing barriers, builders will be
forced to take their housing projects out of state. Ultimately, rent control further reduces housing availability and drives up costs— the exact opposite of what the state needs.
While there were some wins, such as the passage of a bill that allows homeowners to divide their residential lots and build new housing, lawmakers fell far short of making any true progress in addressing the state’ s housing crisis.
HB 1217 rent control
Passed / AWB Opposed sponsor: Sen. Emily Alvarado, D-Seattle
House Bill 1217 limits annual rent increases to 7 % plus inflation or 10 %, whichever is lower. It also prohibits rent increases in the first year of tenancy and limits rent increases for manufactured homes to 5 %. New construction is exempt from rent control for 12 years rather than the requested 20 years. AWB, builders, housing providers and others testified against the bill. The final bill passed the House 54-44 and the Senate 27-20, with several Democrats joining Republicans in voting against it.
Sen. Shelly Short, R-Addy, is Republican floor leader. Sen. John Braun, R-Centralia, is the Senate minority leader. Sen. Judy Warnick, R-Moses Lake, is the Republican caucus chair. Sen. Ron Muzzall, R-Oak Harbor, is the Republican vice caucus chair.
Bill considered as part of AWB’ s voting record
Favorable outcome for Washington businesses
Missed Opportunities
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