WASHINGTON — With rent unaffordable and prices still climbing in much of the country, President Joe Biden just unveiled a new plan to cap rent increases.
President Biden’s plan would eliminate a tax benefit for landlords who increase their tenants’ rent more than 5% a year. This would only impact landlords with more than 50 units, which covers about half of all rental properties.
Right now, nearly half of American renters spend more than 30% of their income on housing and utilities, according to Harvard’s Joint Center for Housing Studies.
Critics of the proposal argue rent caps don’t work and could have a negative impact on the housing supply.
The plan still needs approval from Congress to become a law.
This summer, the White House also announced new steps to address the overall housing shortage. It includes building new construction and expanding affordable housing.
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