Posted on 07/15/2024 4:13:27 PM PDT by AbolishCSEU
President Joe Biden will propose on Tuesday a nationwide cap on rent hikes of 5% per year, according to The Washington Post, which cites “three people familiar with the matter.”
The proposal will rescind unspecified tax breaks to landlords who raise rents by more than 5%, although it would only apply to landlords who own more than 50 rental units. This would cover roughly half of all rental units in the country, according to Post sources.
It would not apply to units that haven’t been built yet so as to not discourage construction of new housing, which the Biden administration has made a cornerstone of its housing policy. Affordable housing advocates also support policies that lead to the construction of new housing.
Studies on rent control, however, often conclude that it is not a sound policy for bringing rents down because it can prompt landlords to convert rental housing into condominiums, thus shrinking the supply of rental housing.
At the first presidential debate three weeks ago, Biden included a reference to capping rent hikes at 5% but didn’t provide any details. He also said the nation would build 2 million new housing units in his second term.
In his March State of the Union address, Biden called on lawmakers to enact a $10,000 tax credit for first-time homebuyers and people who sell their starter homes. He also mentioned the construction of 2 million new units and an unspecified cost reduction for renters, which now appears to be the 5% annual cap on rent hikes.
Landlords can receive a number of federal tax deductions. These include depreciation, mortgage interest, operating expenses and property taxes, among others. The IRS also offers a Low-Income Housing Tax Credit that can be claimed by landlords who build or rehabilitate affordable rental housing.
Rents, in addition to home prices, have skyrocketed since the COVID-19 pandemic began in March 2020. According to Zillow’s observed rent index, nationwide rents have increased 32.1% from then to now. Housing costs have been a key driver of inflation, an issue that’s plagued Biden’s campaign.
War on private property rights!
Not to mention that rents will start going up well before the legislation is written.
Plank #1 of the Communist Manifesto: Abolition of private property in land and application of all rents of land to public purpose.
How about reducing the rent you charge the taxpayers for the Secret Service on all your properties?
Biden "proposes" NOTHING. His handlers do the "proposing."
And it seems like even low-info Americans are figuring that out, now.
I guess he is also going to cap increases in utility costs, maintenance, rehabilitation, state and local taxes, etc. at 5 percent?
So, he will solve the homeless crisis by decreasing the amount of housing available (which is what happens with rent control).
Talk about an economic illiterate.
“He also said the nation would build 2 million new housing units in his second term”
Gosh, some nice new Soviet concrete block monstrosities for the imported Rat voters.
Wait - isn’t new housing anti-environmental? That’s what they told me from 1970 to right about the time all of Mexico started flooding in. Then it was build build build! Can’t have too many brown bodies. The environment be damned!
Price Controls in an election year!
The bastard is buying votes again from the feeble minded lo-fos.
Nationalized rent control. How American...
Where in the Constitution is Rent Control mentioned?
I must’ve missed it.......
If your government nationalizes the housing stock, takes ownership and control of it, and sets price controls — then you’re living in a communist regime.
If your government allows landlords to retain ownership of housing stock, but the government establishes rules for what the landlords can, and cannot do, and sets price restrictions for the cost of the rentals — then you’re living in a fascist regime.
Hmmm...upon my review of Article I Section 8, I find nowhere in the enumerated powers that allows Fedzilla to engage in rent control. At best, this is a state’s issue, and Biden can go pound sand.
Several problems with this proposal.
1. It’s unconstitutional. The national government has not been delegated the power to control prices or wages, wage price controls notwithstanding.
2. It’s ineffective. The universal effect of price caps is to make an item scarce. So rental units will decrease.
3. A law needs to be passed by Congress. I don’t see this getting past the House.
Oh, yeah, and insurance, labor, inspection fees, landscaping...cause we all know those costs never change.
This is a clown administration.
I just got my real estate reappraisal value and it went up @40% in one year! Not my taxes but my reappraisal value. I don’t want to sell but this is ridiculous. I haven’t contested it yet and I’m not sure what grounds I could but this is crazy.
Why not a property tax hike limit of 5%?
Team ByeDone INTENTIONALLY drives up inflation and the cost of ALL goods and housing costs, THEN IMPLEMENTS PRICE CONTROLS AND CAPS ON RENTAL PROPERTIES.
HOW F'ING COMMUNIST OF HIM.
Fix inflation? Of course not! That would eliminate the need for COMMUNIST GOVERNMENT PRICE CONTROLS.
Sadly since Trump was the first to start eviction moratoriums then he would probably go along with this. Landlord costs are increasing dramatically due to property taxes, insurance spikes, legal cost, and maintenance costs. More than 5%. This is horrible.
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