President Joe Biden announced a sweeping nationwide rent-control plan Tuesday in Nevada to address the housing affordability crisis crippling Americans as he aims to appeal to voters. Rent is a critical issue for them.
The plan aims to curb soaring rents across the country, which have not dropped since the pandemic and proposes ending key tax write-offs for corporate landlords who increase annual rents by more than 5%.
The proposal would last two years.
The initiative targets landlords with over 50 units, which would affect about 20 million rental units, while exempting new constructions to encourage housing development.
Simultaneously, the Biden administration rolls out additional measures, such as $325 million in grants for housing and neighborhood revitalization nationwide. Initiatives also include renter protections—a 30-day notice for rent increases in federally financed properties and a five-day grace period for late payments.
The proposal aims to stabilize housing costs amid a 26% national rent surge since early 2020, according to a Harvard University study. Despite a drop in annual inflation rate to 3% from 3.3 % in May, housing prices rose 5.2% in June alone.
Emphasizing housing affordability, Biden stated, “Rent is too high and buying a home is out of reach for too many working families and young Americans.” The administration argues that capping rent increases would compel landlords to maintain reasonable prices or forfeit tax benefits linked to property depreciation.
The proposal is part of a broader strategy that includes a $10,000 tax credit for first-time home buyers introduced in March. If enacted, the rent cap would incentivize landlords to moderate rent hikes, aiming to make housing more accessible nationwide.