Washington State's Rent Control Plan Could Backfire

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Experts warn HB2114's 7 percent rent cap could reduce housing supply, despite aiming to ease the state's rental market pressures.

Washington State's plan to impose statewide rent control through House Bill 2114 could inadvertently exacerbate the very issues it seeks to address, experts argue.According to the Washington State Legislature, HB 2114, a rent control bill introduced by democrats and passed by the House last week, prohibits landlords from raising rent for existing tenants by more than 7 percent within a 12-month period.

Contrasted with six neighboring areas without rent controls, the study found that landlords, in response to the regulations, opted to convert rental units to owner-occupied properties, resulting in a 7 percent decrease in the available rental units.Nelson suggested in the report that while rent control aims to protect tenants, it may inadvertently harm the very demographic it seeks to assist by constraining the availability of affordable housing.

 

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