Two Washington multifamily markets just made the national renter demand list as Spokane and Tacoma see different challenges in their markets.
By Aaron Kirk Douglas
Washington state’s rental market is marked by sharp contrasts this week.
Spokane is drawing national attention as a top emerging multifamily market and a top-five renter destination — while simultaneously feeling the earliest pressures from HB 1217 enforcement and new eviction-prevention requirements.
Tacoma is producing tangible supply results from its zoning overhaul, and Seattle is navigating a high-stakes debate over whether to temporarily lower Mandatory Housing Affordability fees to restart a stalled development pipeline. Add a softening state budget picture and a national construction start collapse, and here is your complete Washington picture for the week of 22 June.
Rental Industry Faces Mounting Headwinds — Spokane
The Spokane Journal of Business profiles Kelly Clark, founder of Rockstar Real Estate LLC, which manages 110 rental units in Spokane, in a detailed look at the pressures now converging on Washington state landlords and property managers. The combination of HB 1217’s rent stabilization caps (7 percent plus inflation or 10 %, whichever is lower), Spokane’s new June 1 eviction prevention ordinance requiring pre-eviction nonprofit referrals, rising insurance and maintenance costs, and tariff-driven supply chain pressures is squeezing operators’ margins from multiple directions.
Clark says the cumulative regulatory and financial risk is causing many landlords to tighten screening standards — which can make housing harder for marginal renters to access — and she expects some investors to exit the rental market rather than continue operating under current conditions.
Washington’s attorney general has already filed the first HB 1217 enforcement action in Spokane County against Wild Rose RV Park, which faced potential fines of $217,500 for attempting to raise rents 17 percent after the law took effect; the park ultimately paid less than $500 after complying with a consent decree. The Wild Rose case confirms the attorney general is actively using HB 1217’s enforcement provisions, not just holding them in reserve. For Spokane owners and managers, this is a signal to audit your rent-increase practices and eviction procedures now — before you become the next case study.
Tacoma Sees 62% More Homes Enter Pipeline Following 2025 Zoning Overhaul
One year after Tacoma rewrote its residential zoning through the “Home in Tacoma” framework — allowing up to four units on any lot citywide — permit applications entering the development pipeline have jumped 39% compared to the five-year average, and the number of housing units in those permits is up 62%, according to city data. Density per project increased 16%. The gains are concentrated in duplexes, townhouses, and accessory dwelling units, while larger multifamily permits remain softer.
Applications are distributed across the city, with the highest unit density in the Eastside (25%), West End (21%), and South End (18%). Brian Boudet, interim assistant director of Tacoma’s Planning and Development Services, said the city is seeing encouraging early signs while acknowledging that larger projects continue to face the toughest development economics. Tacoma expects to add 45,000 households by 2040.
Tacoma’s data offers the clearest real-world evidence yet that middle housing zoning reform produces measurable results when implemented at scale. For investors tracking the South Sound market, the 62% unit increase signals meaningful latent demand in the duplex and ADU segments — and early-mover advantages may exist before larger institutional capital takes notice.
About the author:
Aaron Kirk Douglas is director of market intelligence for HFO Investment Real Estate In Portland.
