On Tuesday, President Joe Biden called on Congress to cap rent increases at 5 percent — the first time a sitting president has embraced rent control since Richard Nixon implemented widespread price control measures amid hyperinflation in the early 1970s. This extraordinary announcement follows the successes of a growing nationwide tenant movement that has won local and state rent control campaigns in New York, California, Minnesota, Maine, Oregon, and Maryland over the last few years.
The announcement comes at a time when the Biden administration is struggling to revive its reelection campaign and quiet calls for him to step down from running for a second term, of course. The president seems to believe that bold pro-worker policy proposals can push him through to a second term. Whether or not it works, rent caps are a refreshing step in the right direction in a country where millions of renters are suffering badly.
Biden’s proposal for rent caps would protect tenants who live in “corporate-owned buildings” from increases larger than 5 percent for two years. “Corporate” is defined as landlords who own more than fifty apartments in their portfolio. Landlords who don’t comply would risk losing generous property tax write-offs. The plan, which requires congressional approval, is unlikely to become law in the current political environment. Nonetheless, Tuesday’s call for rent caps is a major milestone for renters, largely organized at the national level through the newly formed Tenant Union Federation.
While rent control is often maligned by conservative economists, the truth is that it works. It promotes affordability, high-quality housing, and stabilizes whole neighborhoods in the face of rapidly rising cost of living. By preventing sudden price hikes, it supports households and neighborhoods facing gentrification. By giving tenants the right to renew leases (preventing landlords from choosing not to re-sign the leases of…
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Auteur: Cea Weaver
