Biden Administration’s Bold Housing Affordability Proposal Sparks Debate
When the Biden administration unveiled its latest plans to tackle housing affordability, it introduced a significant update to previous proposals, sparking discussions within the housing industry and economic circles.
The White House’s new proposal urges Congress to pass legislation granting “corporate landlords” – defined as those with over 50 rental units – the option to limit annual rent increases on existing units to 5 percent per year or risk losing federal tax breaks tied to property depreciation.
Although the proposal is not likely to be addressed this year due to Congress being in campaign mode, it has generated strong reactions from various groups. Tenant organizations and progressive leaders aligned with the administration’s economic agenda welcomed the initiative, while economists, Wall Street analysts, real estate groups, and landlord associations raised concerns, criticizing the proposed limits as counterproductive.
“Increasing the supply of affordable rental housing nationwide – rather than implementing politically motivated and potentially self-defeating rent control measures suggested during election campaigns – is viewed as the most effective way to alleviate affordability challenges for renters,” stated Robert D. Broeksmit, President of the Mortgage Bankers Association.
The proposed policy would impact approximately 20 million rental units across the country, accounting for about half of all rental properties.
