WA renters deserve stability in their housing costs

Chicken Little-style “sky is falling” rhetoric from the real estate lobby in opposition to a policy under consideration by the Legislature to prevent excessive rent increases on current tenancies doesn’t stand up to scrutiny. House Bill 2114 is a moderate approach to stemming the tidal wave of displacement, evictions and homelessness that rent-gouging is causing. In fact, many small landlords and realtors like us support the measure, and agree it’s necessary to protect seniors, veterans and working families who are renters in our state.

Rent stabilization, which is what HB 2114 proposes, differs fundamentally from rent control. It allows landlords to set rent at whatever level they want for new tenancies, but prevents increases of more than 7% on existing tenants. The bill exempts newly constructed apartment buildings for the first 10 years of occupancy to address concerns about encouraging new development.

We need to increase the supply of affordable homes and provide adequate support for people who are homeless. But we won’t solve the housing crisis without taking action to help vulnerable renters stay in their homes. 

Contrary to evidence presented by opponents, research by University of Washington professor Kyle Crowder found little evidence to support claims that tenant protections force small landlords to sell their properties. In fact, that research indicates the implementation of two local tenant-protection ordinances had no discernible impact on the pattern of sales of small rental units — those most likely to be owned by “mom-and-pop” landlords — nor did the pattern of sales in Seattle differ from those elsewhere in King County not subject to the ordinances.

A landlord’s biggest expense is the mortgage, which is fixed, not variable. As a general rule, potential increases in other expenses, such as property taxes, repairs and maintenance, could be covered if necessary by rent increases allowed in the bill. In addition, landlords receive generous tax breaks from state and federal governments, which allow the deduction of expenses like repairs and mileage and an exemption from the state business and occupation tax. Depreciation allowances further cut landlords’ federal taxes. And property values in our region appreciate a great deal, which is the biggest incentive for property owners to sell. 

Renters deserve predictability in their housing costs. More than 1 million Washington households are renting with zero protection from excessive rent increases. House Bill 2114 will help tenants stay in their communities, while still allowing landlords to make a healthy profit. The average King County rent was $1,977 at the end of 2023. Because it compounds, an increase of 10% per year for the next five years would mean renters would be paying $3,184 by 2028, a 61% increase in five years. The Census Bureau’s Pulse Survey shows that nearly 500,000 Washingtonians felt pressure to move between May and October of 2023 because of a rent increase. In October 2023, over 18,000 seniors reported receiving a notice of a rent increase of over $500 in the last 12 months. According to Washington State Administrative Office of the Courts data, the state is on track to eclipse the rate of evictions in 2019 before pandemic eviction protections were put into place. Those are numbers. What really matters is that human lives are destabilized by out-of-control rent hikes. 

One of more than 3,000 Washingtonians who signed in to hearings to support the rent stabilization measure was Robin Zorich of Woodland, Cowlitz County, who is on the board of the Association of Manufactured Homeowners. She urged lawmakers to help: “Many of us can’t wait until they build more housing. We’re in our 70s and 80s. Our rent has doubled in the last five years. My husband is disabled and on dialysis. We are on Social Security. If rent hikes keep going unchecked like this, seniors like us may become unhoused. We are struggling and scared. If lawmakers don’t do something, there’s the street or our car. A friend said we should have bought a bigger car, and she’s right.”

Washington’s lawmakers say addressing housing is their No. 1 priority. We hope they put action behind those words and pass rent stabilization.