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.
Zero taxes of any kind for people in our country with first name of Mark!
Typical annual SS increase is at 2.7% is about $648.
Annual rent increase at 5% would be about $250.
Not smart to plan retirement solely on SS payments.
Every worker should save 7-10% of after tax income for retirement. That could mean cutting expenses for booze, travel, and avoiding expensive cars and housing.
Of all the silly- assed pandering bull krap
How do they even dream up such nightmare proposals??? Pizza with sardines castor oil and ex lax chocolate sauce?
Exactly. Heard he likes charging way above normal rates. And gets any improvements paid by taxpayers.
Will be declared unconstitutional.
FedGiv can set rent on FedGov owned property and set reimbursement rates for rental assistance programs.
But controls on private property? No.
Exorbitant annual property taxes already make the landowner a tenant beholden to the worst landlord: the government. Now the government wants to control the contracts between the land owners and the renters. So much for the Fifth and Fourteenth Amendments.
Tuesday shall now be renamed as “Doctor Jill Taco Tuesday” - so let it be written, so let it be done!
FUJB
Pandering POS
“Biden to propose national rent hike cap of 5%”
Sounds like he’s never gone to a Chevron Station...well, doesn’t matter - ‘Chevron’ will come to him.
What authority does this senile POS have to even propose such idiocy?
Suggested names for the new housing: Cabrini Green, Nickerson Gardens...
This is in addition to the 5% Cognitive Ability Cap he has already imposed on the Presidency?
Gets his best advice from AOC
Cabrini-Green Part Deux
North Alabama. Rents have gone waaay up here and many people on fixed incomes are screwed. My retired neighbors were forced to move into section 8 housing because of it. I had to move too. Its always the same routine...40 year old apartments get bought by some out of state company. Then they come in and do cosmetic “upgrades” and they raise rent 20%-30%. Blacks, Hispanics, and white drug addicts seem to take over the place. Cars are broken into. Shootings. Smell marijuana burning constantly. The usual suspects. Decatur, Alabama.
2 million???
hes let in at least 10 million new bodies needing housing.
So glad I’m not in the rental biz anymore.
Welcome to the club, my appraisal just went up 50%. We have a state tax rate for the schools thanks to Howard Dean. So basically my already outrageous taxes are set to increase by 50%. I’ve spent the better part of my life building this place, now we’re probably looking to bail just about the time we could be enjoying what we built. I just don’t know where to move to.
So then supply becomes an issue
Not Constitutional. Not a Federal issue.
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