On July 16, 2024, U.S. President Biden announced his plan to ask corporate landlords to limit rent increases to no more than 5% annually in order to alleviate the housing pressures faced by Americans. He also called on Congress to approve the construction of more affordable housing to permanently lower housing costs.
In a statement released by the White House on Tuesday, Biden emphasized the importance of affordable housing for families, stating that it is part of the American dream. He acknowledged the high rents and unattainable housing prices that many working families and young Americans have been struggling with due to a lack of sufficient housing construction over the past decades.
“I am determined to reverse this situation,” Biden stated. He issued a clear message to corporate landlords, warning them of losing valuable tax incentives if they increase rents by more than 5% on existing apartment units. The President also mentioned that his administration is taking steps to reduce bureaucracy and repurpose public lands to build more affordable housing.
Biden appealed to Congress for support, urging them to pass his proposal for constructing 2 million new housing units to permanently lower housing costs. He emphasized the need for ongoing construction efforts to address the housing crisis.
“In order to lower housing costs permanently, we need to build, build, build,” Biden stated. He called for bipartisan support in Congress to approve his plan and reduce housing costs for Americans in need of relief.
One of the key issues concerning voters in this election year is inflation and rising housing prices. Despite overall inflation slowing down, housing costs remain a significant burden for many Americans.
A recent report from the Joint Center for Housing Studies at Harvard University revealed that many American households are struggling to afford rent, with rents nationwide increasing by 26% since early 2020. Although inflation has eased somewhat, housing prices continue to rise, with a 5.2% increase year-over-year in June.
Biden’s new plan primarily targets corporate landlords to curb the extent of rent hikes for large and medium-sized landlords. However, establishing rent limits will require legislative approval from Congress, which may be challenging to achieve as the presidential election nears and funding bills including such proposals are unlikely to pass at present.