President Biden’s new plan to cap rent increases is a short-sighted solution to curbing rising housing costs. What America needs are commonsense policies that will address the heart of the issue: we need more supply.
Under President Biden’s proposal, housing providers owning more than 50 units – which accounts for about half of all rental properties in the U.S. – will not be able to increase rental prices by more than five percent per year.
While rent control has often been proposed to address housing affordability challenges, it is proven to be an ineffective, temporary patch that ultimately decreases the supply of affordable rentals over time. In fact, in areas where rent control is imposed, developers are reluctant to build because of the limited return on investment and large-scale investors are more likely to convert rentals into owner-occupied condominiums. This creates a ripple effect within communities, decreasing low- to mid-range housing supply, heightening demand, undermining quality of life and financially straining housing providers – not just those owning 50 or more units, but also the small, mom-and-pop providers who are often the sources of more affordable rental options.
We commend President Biden for recognizing this nonpartisan issue and the critical need to address the housing affordability challenges that impact families and individuals of all backgrounds throughout the country, but rent control is not the solution.
The American Property Owners Alliance is advocating for the implementation of smart policies that will both provide targeted assistance to renters and housing providers and drastically increase the supply of affordable homes and rentals. By expanding the Low-Income Housing Tax Credit, maximizing the use of existing properties through the Revitalizing Downtowns Act and creating a path for sustainable homeownership through the Neighborhood Homes Investment Act, we can achieve our shared housing goals to lower costs and increase supply.
About the American Property Owners Alliance
The American Property Owners Alliance (The Alliance) is a nonpartisan, non-profit organization created to protect and support property owners and pave the way for future property owners. Our mission is to educate property owners about federal issues, laws and policies; to advocate for owners’ rights and interests; and to mobilize, when necessary, to secure those rights and interests.
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