Biden Introduces Plan to Limit Rent Hikes
In response to the escalating housing crisis in the United States, President Joe Biden has unveiled a new initiative aimed at capping rent increases. The plan, which needs approval from Congress, proposes to withdraw tax credits from landlords who hike rents by more than 5%.
Targeting property owners with over 50 units, this measure would impact approximately 20 million rental units nationwide. President Biden emphasized the need for this action, stating, “Rent is too high and buying a home is out of reach for too many working families and young Americans, after decades of failure to build enough homes. I’m determined to turn that around.”
An exception in the proposal allows for rent hikes on new constructions and buildings undergoing significant renovations, to encourage the development of new rental properties amid the current low housing stock.
This announcement aligns with Biden’s campaign stop in Las Vegas, Nevada, while Republicans convene in Milwaukee, Wisconsin for their national convention. Administration officials have indicated that achieving congressional approval may be challenging, potentially necessitating a concerted effort during a second term.
The president’s plan targets corporate landlords exploiting the housing shortage by raising rents disproportionately to their cost increases. Federal Reserve Bank of St. Louis data indicates that nationwide rents have surged by 21% since January 2021. Home prices have also spiked, reaching a record high with a 6.4% increase from February 2023 to February 2024, according to the Harvard Joint Center for Housing Studies.
As Biden trails former President Donald Trump in recent polls for the 2024 presidential race, addressing the housing crisis has become a critical focus. Voters are particularly concerned about the economy, with housing costs and inflation being top issues.
Additionally, Biden has directed federal agencies to explore the potential of repurposing public land for affordable housing. In Nevada, the administration is considering the use of 562 acres of public land in the Las Vegas Valley for this purpose, according to a White House fact sheet.
