The Biden administration is taking the fight to America’s landlords.
Taking on America’s Landlords
The Biden administration is trying to solve a big issue for many Americans: crazy high rent prices. Biden has just announced that he wants to cap annual rent rises at 5% for landlords who own over 50 units.
Capping Rent Hikes for Corporate Giants
It’s a move intended to stop corporate landlords from jacking up rents and making housing unaffordable for everyday people.
Pay to Play
Biden is pushing Congress to make corporate landlords choose: keep rent hikes under 5% or kiss their federal tax breaks goodbye. Big landlords control almost half of the rental market and have been making bank by raising rents way beyond their cost increases. Now, the administration is putting its foot down and trying to put a stop to that.
From Public Land to Private Homes
The administration also has plans to turn public land into affordable housing, which could add up to 15,000 new housing units in Nevada alone.
Rehab and Revitalize
Their goal is to rehab distressed properties and revitalize neighborhoods – especially in high-demand spots like Las Vegas.
2 Million Homes and $10K in Relief
Biden is also pushing the “Biden-Harris Housing Plan,” which aims to build 2 million homes and provide $10,000 in mortgage relief to help more Americans become homeowners.
Construction Hits 50-Year High
With more housing units under construction now than in the past 50 years, this plan is all about increasing supply to help bring rents down.
Algorithmic Greed
Biden isn’t just capping rents – he’s also cracking down on corporate landlords accused of price gouging. Recent reports show that the biggest apartment companies have been raking in huge profits by using algorithms to hike rents. It’s putting a lot of pressure on renters, which the administration is hoping to ease.
GOP Roadblocks
Biden is facing pushback from Congressional Republicans, who’ve blocked parts of his housing agenda like rental assistance programs and efforts to build more affordable homes.
Targeting Landlord’s Tax Write-Offs
The new plan needs Congress’s approval, but it’s designed to hit corporate landlords where it hurts: their tax write-offs. If they push rents up more than 5%, they lose their ability to write off depreciation. It’s a simple plan with costly results for any landlord who ignores it.
Brainard’s Battle Cry
Lael Brainard, Biden’s National Economic Council director, explained, “Some corporate landlords are raising rents by more than their costs, expanding their profits at a time when millions of Americans are struggling to cover rent each month.”
Cash is King
In places like Las Vegas, investors are buying homes with cash, turning them into rentals, and then raising rents.
$20 Billion Boost for Affordable Housing
State and local governments have already invested nearly $20 billion from the American Rescue Plan into affordable housing, which has helped get 1.7 million units under construction.
Budget Bonanza
Biden’s 2025 budget is asking for over $258 billion to build or preserve more than 2 million housing units, aiming to lower rents and make housing more affordable.
The 29% Rent Hike Reality
When you look at the data, it’s clear why Biden is proposing these measures. Rent prices have shot up 29% since the COVID-19 pandemic began, with an average annual increase of 7% over the past four years. The current national average rent is a massive $1,958 – a huge jump from pre-pandemic rates.
Swing State Struggles
A USA TODAY analysis found that in key swing states, rental costs have more than doubled in the past four years. Places like Hickory-Lenoir-Morganton, North Carolina, and Oshkosh-Neenah, Wisconsin, have seen rent hikes of over 100%, making affordable housing a big issue for voters.
Tenant Advocates Unite
Housing advocates have been calling for rent caps for years. Tara Raghuveer of the Tenant Union Federation believes rent caps should be tied to federal subsidies and financing to protect renters nationwide.
Federal Land, Local Solutions
The Biden Administration is also pushing federal agencies to find surplus land for affordable housing, with big projects already in the works in Nevada.
Game-Changer or Pipe Dream?
It’s debatable whether Biden’s plans will pass Congress, especially as past plans to impose rent controls haven’t gained much traction, but if they were to pass it could be a game-changer for millions of renters across the country.
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The content of this article is for informational purposes only and does not constitute or replace professional financial advice.
