The Washington State legislature has approved a measure that limits annual residential rent increases to the lesser of 7%, plus inflation or 10%. For manufactured housing residents who own their units but rent the land beneath them, the cap is set at a flat 5%. These regulations do not apply to buildings within their first 12 years of occupancy. In tandem, Washington expanded its Multifamily Housing Tax Exemption program, offering incentives to developers focusing on affordable rental housing. While these changes are significant for Washington, their impact resonates nationwide.

States like Oregon and California already have statewide rent control, with some California cities imposing even stricter local limits. Early in 2025, both Montgomery County and Prince George's County in Maryland — areas long favored by institutional landlords — enacted laws restricting rent hikes to the lesser of 3% plus inflation or 6%, covering both occupied and unoccupied units. On the federal level, the Biden administration advocated for a national cap on rent increases last year, though the effort did not succeed. The momentum for rent control continues to build: a 2024 Redfin survey found that 82% of Americans support limits on how much landlords can raise rents. In 2023, Boston’s mayor unsuccessfully attempted to introduce local rent control. Since 2022, rent control has been a top priority for lawmakers in many regions.

George Carrillo, chief executive officer of the Hispanic Construction Council and former director of Oregon’s Social Determinants of Health, underscores the complexities at play. “As the CEO of the Hispanic Construction Council, I have seen firsthand how the lack of affordable housing affects families, workers, and local economies,” Carrillo tells GlobeSt.com. “While these protections are critical for stabilizing renters' lives in the short term, they can also make developers less likely to invest in new housing. When rental income is capped, builders worry that the financial risks of high construction costs will outweigh potential returns, creating hesitation to move forward with new projects.”