Biden Administration Unveils Housing Affordability Initiatives Targeting Corporate Landlords

Biden Administration’s Bold Housing Affordability Plans

This week, the Biden administration unveiled a comprehensive set of initiatives aimed at tackling the pressing issue of housing affordability. Among these proposals was a notable update that has generated considerable buzz within both the housing industry and the broader economic community. The White House is urging Congress to consider new legislation that would impose restrictions on “corporate landlords,” defined as entities owning more than 50 rental units. This legislation would offer these landlords a choice: they could either limit annual rent increases on existing units to 5 percent or forfeit federal tax breaks associated with property depreciation.

Although this proposal is unlikely to gain traction in Congress this year due to the impending election season, it has sparked a vibrant public discourse. Tenant advocacy groups and progressive leaders who typically align with the administration’s economic strategies have largely welcomed the news. However, a diverse range of economists, Wall Street analysts, real estate organizations, and landlord associations have voiced strong objections, arguing that such rent control measures could be counterproductive.

Robert D. Broeksmit, the president of the Mortgage Bankers Association, articulated this perspective in a statement, emphasizing that “Increasing the supply of affordable rental housing nationwide — rather than resorting to politically motivated and potentially damaging rent control measures that often surface during election campaigns — is the most effective solution to alleviate the financial burdens faced by renters.”

The proposed policy has the potential to impact approximately 20 million rental units across the country, which represents nearly half of all rental properties. As the debate continues, the implications of these proposals for both tenants and landlords remain a critical focus of discussion.