Tacoma’s Measure 1 and the Shrinking Supply of Affordable Housing
Tacoma’s housing market continues to feel the effects of Measure 1 — a set of policies passed by initiative in November 2023 that, while intended to promote stability for renters, are instead accelerating the loss of affordable housing across the city. The recent sale of several Goodman Real Estate properties is a case study in how policy overreach can backfire.
Policies That Discourage Payment and Investment
Measure 1 capped late fees at just $10, imposed lengthy “winter” and “school year” eviction bans, and structured a relocation assistance program which effectively rent increases to 4.99%. While these measures may sound compassionate, they have had unintended and damaging consequences.
By capping late fees and restricting evictions for as long as 12 months, the policy effectively removed incentives for residents to pay rent on time. The result? Higher delinquency rates, shrinking operating income, and mounting costs for property owners who still must pay mortgages, insurance, maintenance, utilities, and staff salaries.
Meanwhile, Tacoma’s 4.99% rent cap fails to account for real-world cost increases — including the proposed Tacoma School District levy, which could raise property taxes by more than $100 per month for the average homeowner. When property taxes, insurance, utilities, and wages all rise faster than rent, it’s easy to see why many housing providers are choosing to sell or reinvest elsewhere.
Why Goodman Real Estate and Others Are Leaving
Goodman Real Estate, a locally-based housing provider, sold off its Tacoma portfolio not because of a lack of compassion for residents, but because Measure 1 made it financially impossible to continue renting to low-income tenants sustainably. When late payments become routine and eviction timelines stretch 4–12 months, the math simply doesn’t work.
Affordable housing is rapidly becoming unviable in Tacoma and investors are now stepping in to redevelop those properties into higher-priced “workforce housing” which caters to residents with stronger credit and higher incomes. Tacoma has already been facing a housing affordability crisis, as is most of Washington State, and Measure 1 is now accelerating the crisis.
True affordability requires a partnership between residents and housing providers — not a one-sided policy that erodes financial stability. Housing providers must be able to cover their costs, reinvest in their buildings, and provide safe, well-maintained homes.
Policies, like Measure 1, which institute rent caps that fail to match rising expenses and moratoriums that stall revenue for months discourage investment, reduce supply, and ultimately hurt the very families they aim to help.
Tacoma City Council is now entering into discussions of how to modify Measure 1 into a more balanced set of laws and TPCAR continues to advocate for balanced housing policy that supports both residents and housing providers. Without sustainable economics, Tacoma will see more “For Sale” signs and fewer affordable doors. The lesson from Goodman Real Estate’s exit is clear: housing stability cannot exist when policy makes it impossible to pay the bills.