On Tuesday, July 16, 2024, President Biden announced a proposal to require housing providers with 50 units or more to cap annual rent increases at 5 percent or risk losing an important federal tax deduction for depreciation. The President’s call to Congress to pass this legislation builds upon Administration actions that are intended to lower housing costs and protect renters, addressing issues that are top of mind for voters this election cycle.
In response, the National Apartment Association (NAA) released a swift media statement stressing that the announcement is yet “another attempt at failed rent control policy that will harm communities and renters across the U.S.” In addition, NAA President and CEO Bob Pinnegar sat down late last week with CNBC’s Brian Sullivan and former Vermont Governor Howard Dean to discuss the dangers of a federal rent control policy. Watch the interview here.
According to the White House’s Fact Sheet, this proposal would apply to more than 20 million units across the country. The law would become effective this year, sunsetting after two years, and include an exception for new construction and substantial renovation or rehabilitation. Any form of rent control harms communities and renters, forcing housing providers and much-needed supply out of the housing market. New NAA research found that rent regulation cripples housing providers’ ability to properly maintain their properties, leading to a decline in housing and neighborhood quality.
NAA continues its advocacy with Congress and the Biden Administration to positively influence policy conversations and ensure the rental housing industry’s perspective is heard and represented. We continue to maintain that the only way to sustainably lower housing costs and create more housing security for renters is to increase housing supply through actions like the Biden Administration Housing Supply Action Plan.
To learn more about NAA’s federal advocacy, contact Greg Brown, NAA’s SVP of Government Affairs.