LISTEN
The Elephant in the Dome
Washington State Senate Republican Caucus Podcast
Topic: Housing Affordability and Policy Challenges
Host: Tracy Ellis
Guests: Sen. John Braun, Sen. Chris Gildon, Kurt Wilson (Soundbuilt Homes)
⚠️ Disclaimer: This is a cleaned-up summary of a recorded conversation. It is not a verbatim transcript and may omit or paraphrase portions for clarity and brevity.
Tracy Ellis:
Welcome to The Elephant in the Dome, the official podcast of the Washington State Senate Republican Caucus. I’m Tracy Ellis, and today we’re diving into one of the most pressing issues facing Washington families: housing. Joining me are Senate Republican Leader John Braun, Senator Chris Gildon, the caucus’s lead on budget policy, and Kurt Wilson from Soundbuilt Homes.
Tracy Ellis:
Senator Braun, how high is housing on the Senate Republicans’ priority list?
Sen. John Braun:
Housing has been a top issue for us for years. It’s part of the broader affordability crisis—food, gas, childcare, health care, and housing are all increasingly unaffordable and, in many cases, unavailable. The Democratic majority has passed housing bills over the last two years, and while some are helpful, they’re mostly marginal. Housing starts are at record lows, and we’re facing a projected shortage of about 300,000 homes statewide.
Tracy Ellis:
Senator Gildon, as budget lead, you’ve seen how much the state relies on housing-related revenue. What’s the outlook?
Sen. Chris Gildon:
It’s not great. Despite $9.5 billion in new state taxes and another $3 billion in local taxes, our budget is already underwater just months into the fiscal year. A major reason is the slowdown in new construction—we’re not collecting taxes from housing development. I believe recent policies, especially rent control, are a big factor in that slowdown.
Tracy Ellis:
Kurt, there’s clearly demand. What’s standing in the way of building more homes?
Kurt Wilson:
Several things. Interest rates are one factor—they’ve been high, though we’re seeing some decline. But affordability remains a challenge. State policies aren’t favorable to growth. The Growth Management Act and urban growth boundaries have constrained available land. On top of that, regulations—like expanded wetland buffers—are making development harder. Local jurisdictions often adopt these rules under the guise of “best available science,” but they’re not always justified. Rent control is another issue. I used to own single-family rentals but sold them because I didn’t want to be restricted on what I could charge. I’ve since built apartments, but financing is tough. Lenders are wary, especially after COVID-era rent freezes. The risk is too high.
Tracy Ellis:
Senator Braun, what can the legislature do?
Sen. John Braun:
First, legislators need to acknowledge that most of them don’t have experience in housing or development. That lack of understanding leads to poor regulatory decisions. We’ve long pushed for reforms to the Growth Management Act—especially around urban growth areas and the rigid ten-year planning cycle. Cities fear lawsuits from groups like Futurewise, which slows development. We also need to rein in the Department of Ecology’s push for expanded buffers based on questionable science. These policies aren’t improving the environment—they’re just driving up costs and pushing builders out.
Tracy Ellis:
Senator Gildon, what about rent control? Kurt said it’s driving builders away.
Sen. Chris Gildon:
Even before the bill passed, the mere possibility of rent control caused developers to pull back. Once it passed, many projects in permitting were abandoned. Ideally, we’d repeal it, but given the current makeup of the legislature, that’s unlikely. Still, we need to stay vigilant. There’s talk of tightening the cap further, and we must push back. Encouragingly, recent polling shows public opinion shifting—people are starting to understand the economic harm rent control causes.
Sen. John Braun:
We did get a sunset clause—rent control expires in ten years—but that’s a long time. The signal has already been sent to builders and landlords. Even if we repealed it today, rebuilding trust would take time.
Kurt Wilson:
As soon as the bill looked imminent, landlords began raising rents preemptively. I know many who hadn’t planned increases but felt forced to act. Normally, rent increases are modest—3 to 5% to cover rising costs. But the 7% cap prompted many to max out immediately. If the cap drops further, lenders will get even more nervous. My $10 million loan is personally guaranteed. For larger projects, the stakes are even higher. Look at New York—rent control there led to vacancies and plummeting property values.
Tracy Ellis:
What were typical rent increases before this?
Kurt Wilson:
Usually 0 to 3%. Sometimes we didn’t raise rents for a year or two. But now, because of policy decisions, we’ve increased housing costs for people who can’t afford to buy. The legislature responded by pouring more money into subsidized housing—because their own policies created more need. It’s counterintuitive. We’re subsidizing the consequences of our own regulations.
Tracy Ellis:
Senator Gildon, why do you think Democrats pushed this legislation?
Sen. Chris Gildon:
They hear from constituents struggling with rent and feel compelled to act. The easiest response is to cap rent increases. But they didn’t consider the ripple effects—reduced maintenance, fewer new units, and long-term harm to tenants. I own a duplex. If I can’t cover operating costs, maintenance suffers, and tenants end up in subpar housing. That’s what we’ve seen in cities with rent control.
Tracy Ellis:
Senator Braun, how do we help people who want to buy homes but can’t afford them?
Sen. John Braun:
It’s simple math. Either incomes go up or housing costs come down. Improving wages is a long-term goal, but we can act now to reduce housing costs. The legislature keeps adding costs and risks. Most lawmakers don’t understand what it means to personally guarantee a multimillion-dollar loan. If you make it too risky or unprofitable, builders will walk away. The rent issue is real, especially in urban areas. But the solution isn’t artificial caps—it’s letting the market work. In places like Austin, Texas, and even Centralia, Washington, where building has increased, rents have stabilized or dropped.
Tracy Ellis:
Kurt, how much have your costs gone up due to state policies?
Kurt Wilson:
It’s hard to quantify because costs come from fees, taxes, and regulations. Excise taxes have increased—up to 3.5% on land transactions. Every time land changes hands, that adds up. The legislature spends that revenue quickly, often on pet projects. Meanwhile, builders have to budget carefully. We can’t gamble on projections like the state does. Construction is heavily taxed and regulated, yet we rely on it for revenue. The answer is supply—more housing. Zoning is key. The legislature has passed good infill development laws, but local governments are pushing back. In Redmond, for example, mitigation fees can reach $70,000 per unit. That undermines the very policies meant to encourage affordable housing.
Tracy Ellis:
Senators, local control seems to be a sticking point. What can the legislature do?
Sen. John Braun:
It’s a fight that will continue. I supported the middle housing and funding bills—they’re steps in the right direction. But some municipalities are actively resisting. We need more density and more greenfield development. That means pushing back on local roadblocks and helping cities implement state policies. Some are just being difficult; others are struggling with unfunded mandates. Either way, we need all options on the table to solve Washington’s housing crisis.