From the Real Estate Roundtable: In July, the White House announced a nationwide rent control plan that aims to cap rent increases at 5%. Owners of rental housing would only be able to take advantage of depreciation write-offs if they limit annual rent increases to no more than 5%, effectively trading depreciation deductions for price controls.
Economists on Rent Control Proposals
- The White House’s recent rent control plan, while intended to make renting more affordable, would impede the production of much-needed housing, particularly for affordable units. (RW, July 19)
- Last week, The Roundtable and a coalition of national real estate associations, wrote to President Biden expressing strong opposition to the proposed rent control measures. (RW, July 26)
- Economists across the political spectrum widely agree that rent control is a discredited policy. Jason Furman, the former Obama administration’s top White House economist, asserts that rent control would worsen housing supply issues instead of solving them.
- A recent study by the University of Chicago surveyed 45 economists from elite institutions, revealing near-universal agreement that national rent control measures would do little to aid Americans and would ultimately worsen the housing shortage. (NMHC, July 30)
Survey Findings:
- No economist agreed rent control would substantially reduce income inequality.
- 2% of economists surveyed agreed that a national rent cap would substantially improve the lives of middle-income Americans over the next 10 years.
- 62% of the economists agreed or strongly agreed that the Administration’s rent cap proposal would substantially reduce the amount of available apartments over the next 10 years, compared to 7% who disagreed.
The Roundtable will continue to encourage policymakers to enact measures that will expand the nation’s housing infrastructure, develop more affordable units and reduce the costs of housing.
See article HERE