Biden Targets Lowering Housing Costs, Capping Rent Increases

President Joe Biden unveiled plans to lower housing cost as increasing home prices, rents and inflation are among the issues that could be a deciding factor for voters in the November election.

The proposal, which must be approved by Congress before taking effect, calls for withdrawing the tax credits from landlords who increase their rental costs by more than 5% every year.

Landlords with more than 50 units are among those who would be impacted the most by the plan. The White House stated that it would account for more than 20 million rental units across the U.S.

There would also be an exception for buildings that are being renovated substantially and new construction. The exception is viewed as an incentive for new properties, which would help establish more units for rent and thereby increase the housing supply, CNN reported.

In a statement, Biden drew a comparison between his administration and that of the "prior administration," particularly underscoring the differences in economic benefits for average Americans.

"While the prior administration gave special tax breaks to corporate landlords, I'm working to lower housing costs for families," Biden stated, as per Reuters.

"Republicans in Congress should join Democrats to pass my plan to lower housing costs for Americans who need relief now," he added.

Although overall inflation is slowing, housing costs remain high and are of particular importance to voters. A June Gallup poll showed that around 36% of Americans cited economic issues as one of the most important problems that the country faces, while 14% stated that the high cost of living was the country's biggest problem.

Aside from housing cost, Biden proposes to cap the rental increases that landlords with more than 50 units in their portfolio can make. The plan is facing some resistance from housing groups. In a statement, the Housing Solutions Coalitio, said that the proposal to cap rent would hurt renters and their communities more than the landlords themselves.

"Decades of academic research from across the United States and around the world clearly show that rent caps — more commonly known as rent control — reduce the supply of available housing and fail to target those renters who need help the most while simultaneously harming other residents and the communities they reside in," the statement noted.

"Rent caps hurt renters and communities," it added.