By Bisnow
President Joe Biden plans to announce a new proposal that would cap residential rent hikes nationwide, The Washington Post reported.
The policy, expected to be revealed Tuesday, would disincentivize landlords from raising rents more than 5% per year by removing tax benefits. The proposal would only apply to landlords who own more than 50 units and would not pertain to units that have not yet been built, the Post reported.
White House officials, speaking to the newspaper under the condition of anonymity, said that the cap could provide renters short term relief while new construction comes to the market. In May, the median U.S. asking rent was $1,653, the second consecutive monthly increase and the highest level since October 2022 — though rents had fallen for 11 months prior — according to Redfin.
Biden hinted at the proposal during last week’s NATO conference. At the time, Realtor.com reported that the plan could only apply to affordable units financed through the Low Income Housing Tax Credit program. The Post didn’t specify what the tax credit targeted would be.
