Marcia L. Fudge and Steve Stivers: Washington’s housing crisis demands real solutions, not rent caps

By Marcia L. Fudge and Steve Stivers

Washington faces an ongoing and critical shortage of housing, with at least 251,894 units missing – and the gap is only widening. In response, the Washington Legislature is considering extreme measures, including House Bill 1217, which would implement statewide rent caps.

As legislators weigh this issue, they must ask themselves: Do rent caps truly improve access to stable housing, or do they make the problem worse? Across the country, policies like HB 1217 have been tested repeatedly, often with unintended negative consequences that actually make housing less affordable. As housing policy experts, we’ve seen it time and time again. We are here to say: with Washington already facing a severe housing shortage, rent caps will ultimately harm renters.

Areas with increasingly high rental occupancy rates like Seattle, Spokane and Tacoma are struggling to keep pace with housing production demand. A study from Up for Growth, a national nonprofit focused on data-driven housing policy, found that Washington’s housing production decreased by more than 7% between 2012 and 2015, one of the worst rates in the nation. This means that there were even fewer homes available for those who needed them. Instead of addressing the root problem of housing production, measures like HB 1217 will make Washington’s housing problem even worse by keeping prices artificially low, discouraging new housing development and the housing investments Washington desperately needs.

This isn’t speculation – it’s backed by real-world evidence. Oregon enacted statewide rent caps in 2019, stringently limiting annual rent increases. The result? Housing production plummeted while rents continued to climb. In Portland, new housing permits dropped by 62% in the first year after the law was passed. Property owners, uncertain about future returns, either converted rentals into condos or pulled their investment altogether, shrinking the supply of available housing and driving prices even higher.

HB 1217 could set the same cycle in motion in Washington. When property owners can’t keep up with rising maintenance, insurance, and tax costs due to rent caps, they scale back investments in rental properties. Rent-controlled apartments can result in residents staying longer than they would otherwise, bypassing the traditional transitions to larger or smaller spaces as their families grow or shrink. At the same time, developers take their projects – and the jobs they generate – elsewhere to states with more favorable housing policies. In the end, rent caps reduce the number of rental units, intensify competition and drive costs even higher for renters struggling to find housing.

We’re not here to stand in the way – we’re here to advocate instead for real solutions. There are proven strategies that exist to expand access to affordable housing, and we’ve seen them succeed elsewhere. Washington needs a better solution than restrictive rent caps. A balanced approach would offer targeted support to renters who need it most and incentivize new housing construction to boost availability.

This can be accomplished by reforming restrictive zoning laws to allow for greater housing density in high-demand areas and streamlining the permitting process to cut unnecessary delays that drive up construction costs. Expanding rental assistance programs, such as housing choice vouchers, will help low-income families secure housing without disrupting the rental market. Additionally, incentivizing private investment in affordable housing – rather than imposing artificial price caps – will encourage builders and landlords to keep units affordable.

By fostering a sustainable, market-driven approach, Washington can create a housing system that works for everyone. HB 1217 is not the solution Washington needs. Lawmakers must reject this bill and focus on policies that will actually make housing more available and affordable for Washington families.

Marcia L. Fudge served as secretary of the U.S. Department of Housing and Urban Development during the Biden admiinstration, focusing on affordable housing, homelessness, and fair housing policies. She previously represented Ohio’s 11th Congressional District and was the first African-American female mayor of Warrensville Heights, Ohio. Steve Stivers is the president and CEO of the Ohio Chamber of Commerce and served from 2011 to 2021 as the U.S. House of Representative for Ohio’s 15th District, where he was a member of the Financial Services Committee and as the Ranking Member on the Subcommittee on Housing, Community Development, and Insurance.