Market Watch, July 16, 2024, Biden Proposes Nationwide Cap On Rent Hikes To Lower Housing Costs. Experts Say It’s Counterproductive.
President Joe Biden has proposed capping rent increases nationwide to 5% in an attempt to rein in surging housing costs, but housing experts are calling the move counterproductive.
Biden’s proposed policy would restrict how much landlords can increase tenants’ rents, the White House said on Tuesday. If landlords hike tenants’ rents by more than 5%, they would not be able to take advantage of tax breaks related to faster depreciation write-offs, according to the policy.
The measure, designed to be in effect for two years, would only affect landlords who own more than 50 units, which is about half of all rental properties, the government said. That’s about 20 million units in the U.S. The rent cap would not affect newly built rental units.
