Oregon is poised to become the first state to enact statewide rent control. The Democrat-controlled state Senate is considering a bill to cap rent increases at 7 points above the annual increase in the consumer price index. Currently, that works out to about 10% a year. The bill also includes tenant protections, such as prohibiting no-cause evictions for anyone who has lived in a property for more than a year. Democratic Gov. Kate Brown supports the bill and says she’ll sign it.

For a state that prides itself on openness to...