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According to three sources speaking to the Washington Post, President Biden is set to reveal a new plan that will cap rental costs across the country.
Sources speaking to the post indiciated that the plan, which Biden will unveil in Nevada on Tuesday, aims to strip a tax benefit from landlords who increase rents by more than 5% annually. This policy will target landlords owning more than 50 units and exclude newly built units to encourage ongoing construction.
Foreshadowing:
During President Biden’s press conference last week, he hinted at this plan. While speaking to the press, Biden said, “It’s time to get things back in order a little bit. For example, if I’m reelected, we’re going to make sure that rents are capped at 5 percent increase—corporate rents, for apartments and the like, and homes, are limited to 5 percent.”
Over the past four years, rent prices in the United States have increased significantly. According to Rent.com, the average annual rent increase has been around 7% per year, resulting in an overall increase of about 29.4% during this period.
Tenant advocates and many renters may welcome the proposal, but there has also been an equal amount of pushback. The National Apartment Association, representing landlords across the country, said, “Implying that rent control will solve the nation’s housing crisis is the easy way out. Rent caps, more commonly known as rent control, are failed policies that don’t work—research has shown it, the lack of affordability in rent-controlled jurisdictions reinforces it and statements from countless economists across generations and the political spectrum are crystal clear.” They added, “Despite President Biden’s mention of rent caps during the debate, he and his policy experts know that the real reason so many Americans struggle with housing costs is because we need to build more housing. There is no debate.”