President Joe Biden unveiled plans for a national rent control policy that some critics say would make housing prices unaffordable.
This week, the Biden White House announced a proposal to impose rent control measures on nearly half the U.S. rental market. The measure would force landlords with more than 50 units to cap rent increases at five percent or lose federal tax breaks, including asset depreciation write-offs.
“Rent is too high, and buying a home is out of reach for too many working families and young Americans after decades of failure to build enough homes,” Biden said in a statement. “I’m determined to turn that around.”
Billionaire real estate mogul Jeff Greene called the president’s plan "completely ridiculous.”
Greene argued that Biden’s proposal makes “no sense at all,” saying that he has no idea why the president would come up with “such a crazy idea” if he wants to appeal to independents and moderates.
The Biden Administration argued that rent prices have increased because of rent hikes, selling the plan as an "anti-gouging" policy. However, inflation has solely contributed to Americans being forced to pay more monthly rent.
Experts have pointed out that inflation is impacting landlords and tenants, noting that real estate costs are increasing faster than the average inflation rate.
The National Association of Realtors also criticized Biden’s proposal, arguing that it’s misleading Americans.
“NAR opposes misguided attempts to cap or control rental rates. Price controls may seem appealing, but they have backfired on local governments and harmed the people we need to help the most,” the group stated.
They pointed out that rent control shifts the burden of inflation onto the housing provider without checks and balances.
According to the Cato Institute, the measure would ultimately lead to a lower supply of rental accommodations and less housing construction, which would decrease the quality of rental housing.
The $258 billion plan is part of Biden’s “Build Back Better” program to build two million housing units.
“To lower housing costs for good, we need to build, build, build,” Biden said.