Housing Coalition Slams Biden’s Rent Cap Proposal

President Biden’s recent proposal for a 5% corporate rent cap has stirred significant debate among housing experts. The Housing Solutions Coalition (HSC) has criticized the plan, labeling it as “typical election year rhetoric” and warning that rent caps exacerbate housing shortages, leading to higher rents and lower quality housing. They argue that the nation’s massive housing deficit requires solutions that prioritize building more housing, not restricting development.

The HSC advocates for regulatory and financial incentives for home builders and multifamily owners/operators, along with increased subsidies for low-income families. They contend that these measures would effectively address affordability issues, whereas rent caps would hinder new development and limit the availability of existing rental units. Echoing this sentiment, Jason Furman, former chair of the Council of Economic Advisers, stated, “Rent control has been about as disgraced as any economic policy in the tool kit,” emphasizing that such policies could worsen housing supply problems.

 

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