Biden to call for 5% cap on annual rent increases, as he tries to show plans to tame inflation

WASHINGTON -- President Joe Biden is acceptable to suggest a 5% headdress connected yearly rent increases for tenants of large landlords arsenic helium tries to amusement he's doing thing astir the precocious outgo of housing, according to a idiosyncratic acquainted with the plan.

The proposal, to beryllium announced portion the president visits Nevada connected Tuesday, is being championed by Biden successful the mediate of a tense statesmanlike run and a clip erstwhile lodging costs person been a large operator of wide inflation.

But the program would necessitate coagulated Democratic power of Congress to go law. Additionally, astir policymakers person said the champion mode to bounds lodging costs would beryllium done much operation and changes to onshore usage regulations.

The idiosyncratic acquainted with the program spoke connected the information of anonymity due to the fact that the connection has not yet been formally announced.

Biden himself previewed the announcement astatine his NATO quality league Thursday, folding it into comments that blamed ostentation connected companies trying to maximize their profits successful the aftermath of the pandemic.

"It's clip things get backmost successful bid a small bit," Biden said. "If I'm reelected, we're going to marque definite that rents are kept astatine 5% increase."

The Washington Post archetypal reported Monday the details of the plan, which would lone use to landlords who ain 50 oregon much units. The terms headdress would not use to units that person yet to beryllium built.

White House officials declined to comment.

The median nationalist rent was $1,411 a period successful June, up from astir $1,150 successful aboriginal 2021 erstwhile Biden became president, according to Apartment List.

Asking prices for rentals jumped successful the aftermath of the pandemic and person since cooled, but the Harvard University Joint Center for Housing Studies recovered successful its astir caller study that fractional of renters were "cost burdened" due to the fact that they walk much than 30% of their income connected lodging and utilities.

In caller months, lodging has been a superior contributor to keeping the user terms scale elevated astatine 3% annually. Inflation has been a cardinal obstacle for Biden politically arsenic helium competes against Donald Trump, the erstwhile president and Republican nominee.

The president has projected policies designed to summation location construction, but manufacture representatives were speedy to knock the rent headdress arsenic ineffective for addressing the wide shortage and perchance starring to less habitable units than the state would different have.

"This is not going to make a azygous portion of lodging - which is what is needed to make much lodging opportunities for Americans," said Sharon Wilson Géno, CEO of the National Multifamily Housing Council. "This is truly a campaign-driven portion of rhetoric."

Géno noted that landlords request to beryllium capable to support up with costs specified arsenic maintenance, security and authorities and section taxes. If those costs transcend what they tin complaint for rent, the hazard is that landlords volition bash little to support their properties and tenants could beryllium worse off.

"What does that mean - the prime of the lodging suffers," she said.

But affordable lodging advocates said that if Biden's connection had already been successful effect, it would person apt reduced evictions and homelessness.

"The caller unprecedented increases successful homelessness successful communities crossed the state are the effect of those arsenic unprecedented - and unjustified - rent hikes of a mates years ago," said Diane Yentel, president and CEO of the National Low Income Housing Coalition. "Had specified protections against rent gouging been successful spot then, galore families could person avoided homelessness and stayed stably housed."