Biden to call for 5% cap on annual rent increases, as he tries to show plans to tame inflation
Biden to call for 5% cap on annual rent increases, as he tries to show plans to tame inflation
President Joe Biden is ready to propose a 5% cap on annual rent increases for tenants of major landlords.
What if we make it illegal to own more than 2 residential properties. Yes, 2. Why 2? Because it won't pull votes away from assholes with a summer house.
AND let's make it illegal for corporate entities to own livable units, and force them to sell via eminent domain within 180 days.
Don't make it illegal. Make it unprofitable.
Increasing taxes per property owned.
On 3+ extra taxes and huge fine if not rented for more than 3 months of the year.
We have an issue with comapnies and foreigners apparently buying property in cities then leaving them empty. Tax them HARD.
Much more likely to pass a plan like that then just making things illegal.
Nah, illegal, and a fire sale.
The politicians to make such a law probably have at least 3 residential properties. One regular home in their state, one close their job in Washington and one for recreation.
Anyway it wouldn't solve the issue. It would likely just create an illegal market.
Free market won't allow for that.
That's why they are suggesting we regulate it.
Lol so he just set a bar that property managers will meet every year. 5% is crazy because that's far outside what the average person sees in wage increases. Cap it at 2% or less if you want to help. And pass a federal renters bill of rights. And create a Poland esq public housing program so government can actually act as a counter balance to the private market.
R's will kill this and continue to blame D's for high rent prices. same as they did with gas. same as they did with the border. republican voters are just that fucking dumb
Sounds like a good reason to get to the polls and cancel out as many of their votes as possible
It is something good but he will need to get more aggressive than that to fix issues with rent/housing.
Housing is so fucked it literally cannot be fixed just by the president, any president. We need laws, we need zoning, we need judicial protections for renters, we need private companies increasing supply... But yes: we also need this cap on rent increases. It's a start!
Let me tell you why this will never, ever happen. Ever.
Private companies increasing supply is supposed to be the goal. But the side effect is basic supply and demand; as the supply increases, demand decreases. When demand decreases, prices fall. When the value of people's homes fall, they go underwater. This leads to a lot of homeowners who were on solid financial footing when they purchased the property suddenly facing financial ruin.
You will never, ever get homeowners to vote in favor of something that will put them in serious financial risk. You will never, ever get landlords, corporate or private, to vote away their primary source of income. And in the medium to long term, you would be putting the financial stability of millions of homeowners at risk if this were to become a thing, along with risking collapsing the housing market entirely via oversupply.
I'm not saying what side is right or wrong, morally, ethically, etc. I'm just pointing out the realities of the situation and what is the most likely result. I don't claim to know what the solution to the problem is, but I do know that this isn't it, and is likely to cause more problems than it solves over the long term.
Boy, it's a real pity you didn't do this before 2023.
That said, if they manage to craft legislation, the Supremes will torpedo it in a hot minute, as soon as the cheque clears or the RV is delivered.
Give us an annual 5% pay raise then. wtf?
Burying the lede:
But the plan would require solid Democratic control of Congress to become law.
That's going to apply to pretty much any good legislation for the foreseeable future. The GOP isnt interested in governing whatsoever. People need to understand that if they want shit to even have a chance of getting done they're gonna have to vote (at a minimum).
Yup. The “O” in GOP stands for “Obstruct”. The GOP has been focused on breaking the government from the inside, so they can then point at it and say nothing works and it should all be privatized instead.
And if we have it...
Biden will once again make an announcement that as defacto party leader there's no way he can change anyone's mind and we're idiots for expecting him to try
This is just a soft rent control which isn’t going to increase the supply of housing.
We don’t need this, we need to tax the fuck out of secondary residences and short term rentals.
Ah yes a half assed solution
If you really want a one-liner like this just tax empty units with some function (exponential, linear, logarithmic, whatever you want) with the listing price.
And of course you'd need stuff regulating what is an empty unit and punishing misreporting, only allowing leases at that price, etc. But it's simple as an idea.
This will be one of his first changes to get reversed if he’s replaced by Trump.
There's nothing to reverse, he's just called for Congress to pass a law doing this
And arguably there won't be anything to reverse in the future. Even attempting this, it'd be blocked by the republican controlled house.
The sentiment is nice though. My worry is they knows it's only sentiment, cause they know it would never pass. I'm cynical.
True. But I’ll take words over nothing. At least it’s some acknowledgment that some thing ought to be done.
How about set that cap at 1/4 average monthly wages for a state or county or even a city.
That wouldn't work because some housing is much more expensive than others. It might have more rooms. It might be better built. It might be newer. At least a 5% increase cap would scale with all of those things more appropriately.
I'm sure there would have to some modifiers but it would work.
Could have used this like 10 years ago
what about the minimum wage being stuck at $7.25? some wait staff make half that still
Biden is just throwing crumbs around like some elder on a park bench feeding pigeons
Ah yes. Let's the this other thing that's not related restrict our ability to move forward.
Don't let perfection stand in the way of progress.
There has been no progress, wages have been too low for decades, housing is out of control, and all we get are table scraps
There's an argument to be made that you need rent control before mandating any wage increases otherwise landlords will just raise rent since they know you have the money. Same argument can be said for UBI, it'll just be a $1000 a month gift to landlords. If you maintain capitals control over setting prices any increase in income will be gobbled up by them as they raise prices and increase profits.
You need to squeeze capital from both sides, price controls and wage increases, for redistribution to be effective. Otherwise they'll compensate for losses on one side by increasing/decreasing the other.
If you say you shall only raise by 5%, you will ALWAYS raise by 5%. Today it's 0% usually until a new tenant. Anytime there are forced amounts, you have to raise it because you can't when you need to
Where the hell have you been living? When I was renting the rates increased at least yearly, if not more often.
I live in a rent controlled building and from 2017 - 2021 my rent stayed the same, no increases.
You can't outsmart supply and demand, period. No government ever has or ever will. Rent control doesn't work, every economist agrees.
Rent control privileges existing tenants over new ones and doesn't fix the supply problem. It incentivizes landlords to constructively evict tenants so they can re-rent at market rate instead of capped rate. Boneheaded policy which makes dems look bad. Voting for Biden but this is a dumb look.
So housing isnt affordable as it is, and this dumb fuck thinks capping unaffordable rent is gonna help?
Why are you down voting this guy? He's right. Yikes
Many of them dont like hearing their candidate is a reflection of the people they claim to hate
It's actually worse than that... we capped rents in Oregon and it made things worse.
Here's the problem... If you cap rent increases at 5% per year, there's no incentive to do anything less than the maximum increase.