Rep. Connors on rent control: "This is not a housing solution. It’s a self-inflicted economic wound"
During an executive session Monday in the House Appropriations Committee, Rep. April Connors dismantled the Democrats' case for rent control. With the Democrats in the majority, the bill is now headed for the House floor.
Full transcript:
This is gonna be a little bit of a long speech today, Mr. Chair, because I understand why renters are frustrated.
The cost of housing is way too high in Washington state, and a lot of people are having a hard time finding an affordable place to live.
I hear from families who are worried about rising rents. I hear from young professionals who feel like homeownership is out of reach and seniors on fixed incomes who fear being priced out of their communities.
And these are all real concerns. Washington state is currently the fourth most unaffordable state in the nation for housing.
Rent control is not the answer. I want to be really clear.
This bill will not stabilize the housing market. Stabilization means making something steady and unlikely to change. This bill does the absolute opposite—it's going to destabilize our housing supply.
This is a great bill. It's a great bill for Idaho. It's a great bill for Montana. And it's a fantastic bill for Arizona.
Even the hint of this bill in Washington has already started pushing all of our housing providers out.
We are a fiscal committee, and this bill is not just about housing—it's also about Washington state’s budget. When we drive away development, we drive away revenue.
I want to give you a few examples of a few people who have contacted me this week since this bill was heard in the Appropriations Committee.
A Seattle developer just completed a 369-unit, all-workforce housing project, with 32% of the project at less than 50% AMI. Based on changes in regulations in Seattle and the proposed implementation of this legislation, the developer has decided to end production in Washington state and is now developing in Arizona.
That developer paid $6.4 million in sales tax, of which $4.2 million is estimated to have been paid to the state of Washington.
And that manufactured home developer is also under construction on two manufactured home communities right now in Washington state, adding over 300 home sites. The estimated sales tax on the site work and clubhouse to the state is $1.6 million.
That's not including the purchase of all the manufactured homes and the housing units installed on the site. That’s another projected revenue loss to Washington state—if they didn’t do it—of $8.3 million.
That housing provider has indicated that they are going to stop building in Washington state and are currently acquiring properties in Idaho and Montana.
The third and last one that I'm going to bring up today—because there are many more stories just like this—are two projects that are happening right now in the Beltway-Kirkland area.
They're building over 400 units of workforce housing. Both are projected to generate about $5.7 million in sales tax to Washington state.
The same developer has delivered over 1,200 units of workforce housing in Washington state. That developer recently set up an office in Idaho to develop mixed-use affordable and workforce housing. The developer has indicated that with this legislation, he will no longer be pursuing options in Washington state.
This is just three examples of over $18 million of revenue to the state.
That’s not including B&O tax. It's not including property tax. It's not including impact fees. And it's not including the broader economic scope of this bill, which will also destroy construction jobs in Washington state.
If this bill passes, we're talking about millions in lost revenue and lost housing units when the state can't afford it. It'll drive up the cost of housing and rent.
We haven't even talked about all the small housing providers who have already said they’re going to sell their homes if this bill goes into effect.
In Washington, the real problem is not enough housing. We don’t have enough housing.
Rent control has failed in New York. It’s failed in San Francisco. And it will fail here because it chokes off supply and drives up prices.
This right now is the Appropriations Committee, and our job is to evaluate the fiscal impact of legislation.
This bill is not only going to fail renters—it’s also going to fail our state budget. It’s going to reduce tax revenue. It’s going to shrink our housing supply. And it’s going to accelerate the affordability crisis in Washington.
Economists all agree—this is not a housing solution. It’s a self-inflicted economic wound.
And I'm urging that we all vote no today.
#rentcontrol