What else does Biden’s plan include?
Jim Parrott, nonresident fellow at the Urban Institute and co-owner of Parrott Ryan Advisors, believes Biden’s plan for capping rents needs to be taken in context with his other housing initiatives.
“It would make little sense to make this move by itself,” says Parrott, according to The Washington Post. “Coming up with a relatively targeted bridge to help renters while new supply is coming on line makes a fair amount of sense.”
Biden is urging Congress to pass the Biden-Harris Housing Plan, which he says would build 2 million homes and provide $10,000 in mortgage relief for first-time buyers.
He’s also calling on federal agencies to assess surplus federal land that can be repurposed to construct tens of thousands of affordable homes.
Invest in real estate without the headache of being a landlord
Imagine owning a portfolio of thousands of well-managed single family rentals or a collection of cutting-edge industrial warehouses. You can now gain access to a $1B portfolio of income-producing real estate assets designed to deliver long-term growth from the comforts of your couch.
The best part? You don’t have to be a millionaire and can start investing in minutes.
Learn MoreIs this a viable solution?
Critics say Biden’s rent stabilization plan does nothing to address the root of America’s housing problem — and call for expanding housing supply as a long-term solution instead.
Sharon Wilson Géno, president of the National Multifamily Housing Council, believes Biden’s proposal is nothing more than a “farce” to get more votes ahead of the November election.
“This whole idea that they’re going to cap rents for two years, just for existing property, but it’s not going to apply to any future property because somehow they don’t want to impede future development is nonsensical,” Géno told Bloomberg. “It’s absolutely going to impede future development because they’re seeing what’s happening to existing property.”
Géno says lower-income households are more likely to reside in housing owned by smaller operators — which means the benefits of the rent cap will largely go toward higher-income households.
But Diane Yentel, president and chief executive officer of the National Low Income Housing Coalition, supports the plan and even calls for immediate action from Biden, instead of waiting for Congress’ approval after the election.
“The recent unprecedented increases in homelessness in communities across the country are the result of those equally unprecedented — and unjustified — rent hikes of a couple years ago,” Yentel said in a statement.
“Had such protections against rent gouging been in place then, many families could have avoided homelessness and stayed stably housed.”
The richest 1% use an advisor. Do you?
Wealthy people know that having money is not the same as being good with money. Advisor.com can help you shape your financial future and connect with expert guidance . A trusted advisor helps you make smart choices about investments, retirement savings, and tax planning.
Try it now
