Invest

Transit Riders Union members are advocating for increased rents in Tukwila

About the Author
Mark Harmsworth
Director, Small Business Center

In a misguided attempt to reduce rents, members of the Transit Riders Union are asking the City of Tukwila to pass a series of rent control measures that, the union believes, will help keep rents down and help tenants. The result, should the measures be adopted, will be exactly the opposite and rents will go up.

Backers of rent control think it’s a great deal for tenants.  They’re wrong.  Rent control decreases available rental property and creates ‘apartment lock’ – people in a rent-controlled apartment don’t want to move, fearing they’ll lose the sweetheart deal the law provides. That means normal market turnover is blocked, and young apartment-seekers have fewer choices, and must move farther out or pay higher rents.

In the Washington State Legislature, House Bill 2114 (HB 2114), otherwise known as rent control failed to pass earlier this year. HB 2114 would have limited rent and fee increases to 7% and would have increased the notification period to 180 days for increases over 3%. The tenant would have been able to terminate a lease within 20 days and if the increase is over 7%, the tenant would have received damages and up to three months’ rent.

Similar to HB 2114, the Transit Riders Union members are asking the Tukwila City Council to pass:

  • 180-day notice for increases over 3%.
  • Capped late fees at $10, which removes any incentive to pay rent on time.
  • No rent hikes for housing that is unlivable, without defining what unlivable means.
  • Removing the ability for a property owner to run background checks on potential tenants by restricting the use of a social security number.

Rent control reduces access to new affordable housing.  When the government imposes price controls, supply quickly dries up. 

The threat of punitive laws like HB 2114 and the polices that the Transit Riders Union members are advocating for, are causing property owners to sell rental properties. Seattle lost 3,000 rental units in a 6-month period in 2022. HB 2114, and other rent control measures would create a hostile environment for property owners.

Instead, policymakers and city councils should make housing more affordable by cutting property taxes and pointless permitting rules that make building homes so expensive. If the supply of rental property increases, rental costs will go down.

People should oppose the phony promise of rent control, not only because it’s ridiculous and impractical, but because it is so obviously unfair.  Politicians should not pass arrogant laws that disrupt healthy market signals, block the construction of more housing, and insult people’s dignity. Bills, such as Senate Bill 6136, whose title includes the words, ‘for the privilege of providing property for rent’, illustrate how disconnected lawmakers are from the rental property owner’s nightmare of trying to rent their properties without losing money.

The policies that the Transit Rider Union members are advocating for and bills like House Bill 2114 will not help reduce rents in the rental property market. It will reduce available rental properties, drive up rents and create more homelessness.

Sign up for the WPC Newsletter

 

Share