Biden unveils plan to cap rent hikes

President Joe Biden revealed a series of proposals aimed at lowering housing costs on Tuesday as inflation and elevated home prices are shaping up to be decisive issues for voters this year.

President Joe Biden revealed a series of proposals aimed at lowering housing costs on Tuesday as inflation and elevated home prices are shaping up to be decisive issues for voters this year. The plan, which is subject to congressional approval, has two parts. The first proposal calls for withdrawing tax credits from landlords who raise rent by more than 5% per year, beginning this year and for the next two years. The plan would apply only to larger landlords who have more than 50 units in their portfolio, though that counts for more than 20 million rental units across the country, according to the White House. The policy would include an exception for new construction and buildings that are being substantially renovated. That’s aimed at incentivizing new rental property construction to increase supply of apartments and homes for rent. “While the prior administration gave special tax breaks to corporate landlords, I’m working to lower housing costs for families,” Biden said in a statement. “Republicans in Congress should join Democrats to pass my plan to lower housing costs for Americans who need relief now.” While overall inflation is slowing, the cost of housing remains one of the biggest hurdles for many Americans. A record-high 22.4 million renter households spent more than 30% of their income on rent and utilities in 2022, the last time the data was measured, according to a report from the Joint Center for Housing Studies at Harvard University. That represents an increase of 2 million households over the previous three years. New inflation data released last week showed that shelter inflation rose in June at the slowest pace in three years. On an annual basis, though, housing price hikes rose 5.2%, outpacing overall inflation.