The Biden Administration announced a new proposal to make housing more affordable. The plan involves preventing landlords from raising rents by more than five percent and looking into the development of public lands to build affordable housing options.
Congress’ Approval
The proposal would require Congress’ approval, which House Republicans are unlikely to grant before the November election. Republicans will oppose the rent control proposal but would likely consider opening up some of the vast public land trust for development.
Tax Credits Rescindment
Biden’s newest proposal centers on rescinding tax credits for landlords who raise rent by more than five percent. Studies show that rents have increased 21 percent since 2021, and home prices hit an all-time high in 2024.
Large-Scale Landlords
The Administration’s proposal would only apply to large-scale landlords who operate over 50 rental units. According to the Administration, there are approximately 20 million rental units nationwide for whom the program would use.
Addressing Runaway Housing Costs
Biden has struggled during this Presidential term with how to address runaway housing costs when the problem is inextricably tied to the other economic conditions and governed overall by the reality of demand far outstripping supply.
Corporate Landlords
When landlords take advantage of tenants in tough financial straits, Biden stated that his proposal would send a “clear message to corporate landlords.”
Biden’s Statement
Biden said, “Rent is too high, and buying a home is out of reach for too many working families and young Americans after decades of failure to build enough homes. I am determined to turn that around.”
Tax Benefits Exception
The proposal, which cuts off tax benefits for landlords who raise rents more than five percent, carves out an exception for new construction and substantially renovated properties.
Increasing Supply of Homes
The new construction and renovated homes are in the public interest to incentivize because the only sure way to decrease housing costs is to increase the supply of homes.
Underbuilding of Properties
Due to many factors, builders and investors have underbuilt new properties for decades, leading to a sharp imbalance between supply and demand today.
Solving the Problem Over Time
The problem must be solved over time, as development takes years and investment dollars. Since interest rates are relatively high compared to the past several years, building is at a premium, even for economy builds.
Cost of Frugally Built Homes
The most frugally built homes may still cost too much for many Americans needing housing.
Campaign and Public Lands
Biden announced as he prepared to campaign in Las Vegas and during the week of the Republican National Convention.
Tasking the Administration
During the same speech, Biden also stated that he tasked his Administration with identifying public lands that might be practical and economical for affordable housing development.
Identifying Public Lands in Nevada
In Nevada specifically, the federal task force has identified over 500 acres of public land in the Las Vegas Valley that may be ripe for the development of affordable housing options.
