In a bid to make housing across the United States more affordable, President Joe Biden unveiled a new plan Tuesday that would keep rent from rising by more than 5% per year for about half of the landlords in the United States.
Channel 2 Washington Correspondent Nicole D’Antonio spoke to housing experts about how the proposal could impact both housing supply and landlords if the proposal is enacted.
According to the White House, the president’s proposal would keep landlords from pushing rent prices up by more than 5% or risk losing a major tax break, but it would only impact landlords with more than 50 units.
That’s about half of all rental properties in the U.S.
The policy also would not apply to units that have yet to be built.
While the plan was proposed by the president, it would still need approval from Congress.
Critics of rent caps argue they don’t work. Instead, they say any attempts to control rent could actually discourage developers from building new homes at all.
What do you think of this new attempt from Biden? Let us know in the comments below.
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