Chris Shirley
marketing@navigatehousing.com
President Joe Biden proposed a Rent Cap Plan to stop increases as Americans battle soaring housing costs. According to the proposal, Federal tax credits would end for any landlord who tries to increase rent by more than 5%.
“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.”
President Joe Biden
The policy will apply to landlords with over 50 units, affecting around 20 million rental units nationwide. The President hopes the plan will send a “clear message to corporate landlords.”
Rental Prices: Where Does The Market Stand Right Now?
As a rent cap plan is in the works, what does the average American pay right now? Rental prices vary by market, but the cost of rent averages $1,900 per month. Several factors have caused prices to rise since the COVID-19 Pandemic including inflation. Experts say while the cost to rent is high, it is still cheaper than owning a home in most of America’s busiest areas.
Next Steps in the Rent Cap Plan
The President’s plan to limit hikes in rental prices does require congressional approval. Additionally, most policymakers believe that the best way to limit housing costs is through increased construction and changes to land use regulations.
The Biden-Administration is also working to build more affordable homes across America. The plan also includes repurposing Federal land to build thousands of affordable units. According to The White House, “The Federal Government is the largest landholder in the country. State and local governments, along with transit agencies, school districts, public utilities, and faith-based institutions, also own substantial amounts of underutilized land. This land could be repurposed to better meet local priorities and housing needs.”
President Biden wants agencies to assess surplus federal land that can be repurposed to build more affordable housing across the country.
