In an attempt to curry support among Democrat voters skittish about his floundering reelection campaign, President Joe Biden last week unveiled a series of proposals the White House claimed would lower housing costs, including a federal rent control strategy.
The plan, which would require approval from Congress, would withhold federal tax credits from property owners who raise rent prices by more than 5 percent a year.
The White House claimed that the proposal was aimed at landlords who own more than 50 rental units. However, that would still amount to over 20 million rental properties across the country.
The plan would exempt properties that are new constructions or are under substantial renovation as a way to incentivize the construction of new rental properties and boost available housing.
The president defended the proposal in a July 16 statement by accusing the Trump administration of giving “special tax breaks to corporate landlords” while he is lowering “housing costs for families.”
Biden called on the Republicans in Congress to work with Democrats to pass his rent control proposal, claiming that it would bring “relief” to Americans by lowering housing costs.
Biden first hinted at his rent control plan during the disastrous CNN debate in late June. He brought it up again during his press conference following the 75th Anniversary NATO Summit in Washington.
However, not everyone supports federal rent control since government regulations generally increase costs while reducing supply.
The Housing Solutions Coalition, an alliance of housing groups, including the Mortgage Bankers Association, blasted the proposal, warning that federal rent caps would do more harm than good to renters and communities.
In a joint statement released on July 12, the coalition said that “decades of research” has shown that rent control reduces available housing and fails to provide renters who need the most help with any relief.