‘Especially consequential’: Ferguson signs rent cap bill into law

A ‘For Rent’ sign on a house in Bellingham’s York neighborhood on Friday, March 7, 2025. (M. Scott Brauer/Cascade PBS)
Caps on yearly rent increases are officially law after Gov. Bob Ferguson signed the contentious bill on Wednesday.
Ferguson, who had remained silent on his position throughout the legislative session, said Wednesday that the new law will be “especially consequential” for Washington residents.
Under the final version, property owners cannot raise most tenants’ rent by more than 7% plus inflation, not to exceed 10%. For mobile homeowners, increases are capped at 5% every year.
“This is a really positive piece of legislation that will help a really challenging situation for us,” Ferguson said.
Ferguson signed the rent cap bill and nine other housing-related bills at an event at Blake House in Seattle. The other policies included limits to parking minimums, reductions to the permit timeline for new housing and expansions of tax breaks for people who own accessory dwelling units and rent to low-income households.
The rent cap policy passed the House of Representatives 54-44 and the Senate 27-20, with a handful of Democrats voting with Republicans against it. It took a dramatic path through the legislative session, eventually ending up in a version even some of its original backers were hesitant to support. At the start of this session, the policy included a 7% cap on yearly rent increases with no adjustment for inflation.
The bill’s final version includes a host of exemptions for certain types of housing, including dwellings owned by nonprofits, housing that receives federal low-income housing credits, and new construction built in the past 12 years.
Still, supporters say the policy is an important step to help many renters across the state avoid steep unexpected increases. Opponents of the policy say it will stifle new development, which could worsen the state’s housing shortage and increase rents overall.
On Wednesday, Ferguson said that he believes legislators landed on a “balanced approach” with the final version of the policy, adding that it will help keep Washingtonians from being priced out of their homes.
“We’ve got a crisis here in Washington state,” Ferguson said. “Doing things business-as-usual is not going to work.”