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.
..or price controls on Ukraine funding or our BLOATED government.
he proposed caps on groceries too.
If this order seems likely to be signed, I could see a wave of immediate rent increases. Either to get ahead of the rule, or to ensure they maximize their ability to set their rent. If it happens before the election, renters won’t be happy with Joe.
Private property and free markets mean nothing to these people.
when he’s able to buy property after this november he can cap his rent if he wants to.
Talk about DICTATORSHIP!!
The “greatest” capitalists in the world, true robber barons in fact, is the government.
They get price hikes (taxes) at will. They block access to markets and restrict those markets they are not in. And so on.
since when does the Constitution grant the Feds the right to implement rent control?
Free markets and honest money.
Add a large measure of respect for the Constitution and we’ll all be in a good place.
Rent freeze at 5%, while Social Security projected increase is 2.7%.
Typical leftist problem-solving logic.
Yeah, he cant do that. Biden thinks he is a king.
I can go along with capping yearly increases of essential items (rent, food, medicines, electricity, water, health insurance etc) at 125% of CPI. Currently that would be about 4% maximum.
I mean this point, Biden should promise everyone in the USA get’s $5000 a day spending money.
Ain’t Communism wonderful.
“He also said the nation would build 2 million new housing units in his second term”
if this is anything like the 7.5 billion dollar program that has managed to build a grand total of seven EV chargers, then we might get a dozen extra units out of a 10 billion dollar Federal program ...
Rent control pretty much ruins the market every where it’s done. Government has NO business controlling rents. It’s a private matter between the landlord and tenant.
Getting ready to ask the same question. It’s not in Article I, few rentals straddle state lines, so it’s not interstate commerce. And it’s nowhere to be found in Article II as well.
Stupid communist asshole!
How does he think he has the authority to do such a thing???!
Goddamned DC whores!!!
They are already high. Joe liked and was responsible for that prior to election time.
we are way past this one
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