On Tuesday, July 22, 2024, NAR and a coalition of housing provider industry partners (including the National Multifamily Housing Council, the National Apartment Association, IREM, the National Association of Home Builders, and the Mortgage Bankers Association) sent a letter(link is external) to the White House and Congress expressing strong opposition to the President’s announced rent cap proposal. The proposal—which requires Congressional action—would take away the accelerated depreciation tax provision from housing providers with 50 or more units who raise rents by more than 5% per year. It would be in place for two years and only apply to existing properties, not new builds.
NAR and its coalition partners stress that rent caps will absolutely not solve the issue of the shortage of affordable housing. They jeopardize the financial solvency of rental communities, lower the quality of housing stock, limit housing choices, and disincentivize new development. Economists from across the political spectrum agree—rent control ultimately worsens challenges to affordable housing in communities, and ignores the real reasons those challenges exist. Instead of focusing on this failed policy solution, the administration should support federal programs that encourage new investment into our nation’s rental housing stock and push for states and localities to remove barriers to new development.
While the proposed policy is not expected to get any traction in the 118th Congress, NAR will continue to monitor this issue closely and keep our voice heard by the administration and policymakers. Additionally, NAR has resources for state and local associations facing rent control proposals in their communities to help them push against these damaging policies and for real solutions to the nation’s housing supply and affordability crisis. Additionally, NAR is a founding member of the Housing Solutions Coalition, which is dedicated to finding real solutions to housing affordability challenges and providing information and resources to oppose misguided rent control campaigns.