WA Gov. Bob Ferguson signs controversial rent cap, other housing bills into law
Gov. Bob Ferguson on May 7 signed into law several housing bills — including a much-debated cap on annual rent hikes.
The Democrat conducted the signing at the Blake House affordable high-rise in Seattle.
Housing was among the hottest topics during 2025’s just-wrapped 105-day legislative session. Both Democrats and Republicans pushed bills to ameliorate Washington state’s housing crisis, even though they didn’t always agree on the best approach.
For months, Ferguson remained tight-lipped — at least publicly — about whether he’d green light House Bill 1217, the so-called rent-stabilization measure.
But on May 7, he got out his pen and said, “It’s really an honor to sign this important legislation into law.”
Ferguson also reflected more broadly on the housing progress made this year.
“I’m confident when folks look back at this legislative session, they’ll call it the session of affordable housing,” he said.
Dan Bertolet with the regional nonpartisan think tank Sightline Institute called the new housing laws “big wins for Washingtonians” in a news release.
“Red tape and bad policies have choked off homebuilding for decades and sent the state spiraling into an affordability crisis,” said Bertolet, Sightline Institute’s senior director of Housing and Cities. “Leaders in Olympia passed a smart package of upgrades this year that empower communities large and small.”
Here are five of the housing bills that Ferguson signed into law May 7.
Rent cap
Arguably the most-watched housing bill in the 2025 session, HB 1217 sponsored by state Sen. Emily Alvarado, a West Seattle Democrat, will cap yearly rent increases at 7% plus inflation or 10%, whichever is lower. A 5%-hike limit applies to manufactured homes.
After a renter moves, the landlord can reset the price to market rate. Landlords must give at least 90 days’ notice before boosting rent.
Alvarado emphasized the need for the law at the May 7 bill signing.
“Today we put common-sense guardrails on our rental housing market so that hardworking families and older adults don’t get unchecked excessive rent increases,” she said. “This law is a good beginning. It’s long overdue, and it’s urgently needed.”
.png "Screenshot (355).png")
Parking reform
Sponsored by state Sen. Jessica Bateman, an Olympia Democrat, Senate Bill 5184 is viewed by housing advocates as among the most robust pieces of parking-reform legislation to date in the U.S. The new law offers flexibility for minimum parking requirements and scraps such requirements for senior, affordable and small-scale housing to help create additional affordable housing and reduce costs.
Supporters say that it will also cut back on unnecessary pavement and curb sprawling development.
Relief for veterans
State Rep. Stephanie Barnard, a Pasco Republican, authored HB 1106 to acknowledge disabled military veterans’ significant sacrifices by ensuring more can receive property-tax relief by reducing disability-rating requirements.
“They have a hard time working and going to work, and the rating that they receive should not be an obstacle to them receiving support and help with their property taxes,” Barnard said at a February public hearing.
Existing buildings
HB 1757, sponsored by state Rep. Amy Walen, a Kirkland Democrat, aims to create more housing in existing buildings. New units no longer need to adhere to the latest energy-code requirements, which can be costly and stall conversion projects.
Condominium construction
Democratic state Rep. Jamila Taylor’s HB 1403 seeks to boost opportunities for homeownership and increase middle-housing options by simplifying condo-construction rules, providing better incentive for their development.
“The current statute for condominium warranty is unclear and ambiguous, creating unnecessary legal risk for builders that impacts their willingness to advance condo development,” the Federal Way lawmaker said in a March 12 news release. “This leaves residents with fewer viable options to become new homeowners or to down-size as they reach retirement.”
This story was originally published May 7, 2025 at 2:19 PM.
.jpg)