The Biden-Harris administration has released a new housing affordability plan that would crack down on price-gouging by corporate landlords, if drawn up as legislation and approved by U.S. Congress.
The idea, announced Tuesday, is to force large landlords to either cap rent increases on their existing units at 5 percent annually or lose valuable federal tax breaks. The cap, affecting landlords that lease more than 50 rental units, would last two years, under Biden’s proposal, affecting more than half of all rental properties in the U.S., according to the National Low Income Housing Coalition.
Meanwhile in Florida, state lawmakers and Gov. Ron DeSantis approved a proposal that banned local communities from moving forward with a similar idea last year, when they approved the so-called “Live Local Act.” That law, which received bipartisan support with some Democratic dissenters, banned local governments from enacting any sort of rent control or rent stabilization measure that would limit how much landlords could increase tenants’ rent.
The law was supported by the Florida Realtors and Apartment Association, two politically influential industry trade groups that (ICYMI) sued the Orange County government after county residents voted in 2022 to approve a modest 9.8 percent cap on rent hikes for one year.
Rents across the U.S. have surged 30 percent on average since 2019, with Florida containing a number of communities that have, in particular, seen a level of rent growth that has far outpaced growth in wages. According to a recent report from the National Low Income Housing Coalition, renters in the Orlando metro area need to earn at least $31.50 an hour to comfortably afford a one-bedroom apartment, or $35.71 an hour to afford a two-bedroom rental. Homelessness in Central Florida has also increased.
More recently, the Orlando Housing Authority (not affiliated with the city) opened up its waitlist this week to applicants for public housing, and less than one day in, was already overloaded. According to WFTV, the agency confirmed they had received over 10,000 applications from people seeking public housing as of Monday afternoon. The three-day application period closes Wednesday at 11:59 p.m.
Orlando-area U.S. Congressman Maxwell Frost, D-Florida, shared support for the Biden administration’s proposal Tuesday afternoon, urging his colleagues to get it done.
“I'm calling on my colleagues in Congress to make this plan a reality for millions of working families who deserve and need better housing options and protections,” Frost wrote in a post published on X.
Today, the Biden-Harris Administration unveiled a plan to cap rent increases at 5%. I'm calling on my colleagues in Congress to make this plan a reality for millions of working families who deserve and need better housing options and protections. pic.twitter.com/24SYhOgwuO
— Congressman Maxwell Alejandro Frost (@RepMaxwellFrost) July 16, 2024
It’s unclear if the Biden administration’s proposal will ever see the light of day, since it is being announced as just that — a proposal, which would be contingent on whether it receives the support of Congress. Rent stabilization measures are often controversial, with many legislators — including Democrats — generally preferring to tackle the issue of the national shortage of affordable housing units and other policy issues, such as changes to zoning rules.
Even so, housing advocates on Tuesday praised the Biden administration’s plan, while gently calling for Biden to rely less on Congress to make this a reality.
“President Biden’s proposal to temporarily cap rent hikes to prevent rent gouging is historic,” said Diane Yentel, president and CEO of the National Low Income Housing Coalition. “But rather than waiting for Congress to advance anti-rent-gouging measures after the election, President Biden can and should take action now to put in place these and other critical protections for renters living in properties with federally backed mortgages, as called for by NLIHC and renters nationwide.”
A recent report from the watchdog group Accountable.US found the six largest publicly traded apartment companies brought in nearly $300 million combined in increased profits during the first quarter of this year. All six companies, notably, have also faced lawsuits related to their use of RealPage, a real estate tech company that is under investigation for alleged collusion with landlords to fix rent prices.
The Biden administration — which is struggling to maintain voter and donor support following a widely-criticized debate performance — has also supported efforts to crack down on rental "junk fees," mandate certain tenant protections for those living in federal-backed properties, spur more affordable housing development and increase federal funding for homelessness assistance programs.
Former President Donald Trump, the presumptive Republican presidential nominee, has endorsed in his own agenda a "tent cities" idea for homeless people that is similar to one already approved by DeSantis here in Florida.
Like the Florida plan set to go into effect in October, decried by local housing advocates in Orlando, there is no mention of dedicated funding to support Trump's proposal.
The National Apartment Association, in a statement responding to Biden’s rent cap proposal, smeared plan as “another attempt at failed rent control policy” that would harm communities. “It’s time to stop issuing policies that harm the people who are trying to house Americans,” the group shared. The NAA has spent millions of dollars in recent years on political lobbying to “make sure that we're addressing the industry's needs and making sure the industry is fully represented.”
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