Vancouver and Seattle Add Regulations as Washington State Population Growth Slows and Tax Collections Fall – 07/11/25
VANCOUVER, WA: Rental Registration Program
Vancouver is poised to adopt a comprehensive Rental Registration Program aimed at boosting “quality, safety, and communication” in the rental sector.
Key elements include
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Mandatory landlord registration with $30 annual fee per unit
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Fee collection begins in January 2026
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Inspections begin in 2027
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A Tenant Relocation Assistance Fund to provide money to renters forced to move due to: Health/safety-related displacements, Non-compliance by a landlord, Natural disasters
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Emphasis on landlord education and compliance
A public hearing is scheduled for July 14, 2025
Read the draft ordinance and other information here: https://www.beheardvancouver.org/rentals
Note: There is a significant incentive to charge landlords this fee. The City of Portland adopted its registration program in July 2018, and it became active that year at a cost of $60 per unit. The cost has quickly escalated to $70 per unit. The fee is adjusted annually based on the CPI-West increases. The City of Portland earned $7,655,820 in regulatory fees from the registration of 127,597 residential units, according to a 2023 “State of Housing in Portland” report. The 2024 report, released in June 2025, omitted this data.
SEATTLE, WA: Algorithmic Rent-Setting Under Fire
The Seattle City Council unanimously passed Ordinance CB 121000, restricting landlords from using rent-pricing software that “coordinates” pricing across multiple owners.
Key takeaways:
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Bans services using private data to generate rent suggestions for >1 landlord
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Allows use of public-data-only tools and non-contractual platforms
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$7,500 fines per unit + tenant right to sue
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Effective August 1, 2025
Operators are urged to consult legal counsel immediately, as many tools may now pose compliance risks.
BELLINGHAM, WA: Caps on Housing Fees
Bellingham has passed new fee restrictions under BMC 6.16.040, tightening what housing providers can charge tenants.
What’s changing:
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Application fees capped at $50 + CPI
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Pet deposits are limited to 30% of the monthly rent
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Security deposits capped at 1 month’s rent (2 months for nonprofits)
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Late fees are limited to 2%
Critics argue these limits may conflict with state law and discourage local housing investment.
State of Washington Reports Tax Collections Down $720 Million
Last week, Washington’s latest revenue forecast showed a net $720 million drop through the 2029 budget cycle, with declining consumer activity, global trade shifts, and looming federal cuts driving uncertainty. Although the current budget sees a short-term bump, agencies are being asked to prepare for cuts. The $77.8 billion operating budget is likely to require adjustments when the legislature reconvenes in January, especially if September forecasts indicate further decline.
Slowing Population Growth Signals Shift in Washington’s Demographic Momentum
Washington State reported last week its population reached 8.1 million as of April 2025, adding 79,400 residents—a 1% increase that falls below the state’s pre-2020 average. The slowdown is fueled by the lowest net migration levels since 2013 (excluding pandemic-era 2021) and continued declines in birth rates, especially among younger women. Meanwhile, housing development dropped slightly, with 47,900 units added, over two-thirds of which were multifamily. Most growth remains concentrated in the state’s five largest counties, with King County alone delivering 42% of new housing units. These population estimates are critical for allocating $220 million in state funding and for long-term planning.
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