President Biden has proposed a measure to eliminate tax breaks for landlords who annually increase rent by more than 5%, marking a pivotal move in the administration’s drive to reduce housing costs.
Calling on Congress to swiftly enact legislation, Biden seeks to restrict corporate landlords with over 50 units from benefiting from accelerated depreciation write-offs if they surpass the 5% rent increase threshold.
This reform could affect more than 20 million units, roughly half of the nation’s rental market, as outlined in an administration fact sheet.
“Families deserve housing that’s affordable—it’s part of the American Dream,” Biden said in a statement.
“Rent is too high and buying a home is out of reach for too many working families and young Americans, after decades of failure to build enough homes. I’m determined to turn that around.”
Addressing corporate landlords directly, Biden stated, “Today, I’m sending a clear message to corporate landlords: If you raise rents more than 5%, you should lose valuable tax breaks.”
While framing the proposal as a temporary measure spanning two years, National Economic Advisor Lael Brainard explained during a press briefing that the rent cap aims to support housing development efforts without stifling new construction or major renovations.
In tandem with this initiative, the administration plans to repurpose federal lands through agencies like the Bureau of Land Management, the United States Forest Service, and the United States Postal Service to bolster affordable housing stocks.
“My Administration is also taking action to cut red tape and repurpose public land to build more affordable homes—including thousands of new homes in Nevada—and announcing new grants to build thousands of homes from Las Vegas to Syracuse,” Biden announced from Las Vegas, where he is scheduled to address the NAACP National Convention and the UnidosUS Annual Conference.
The proposal underscores Biden’s commitment to easing housing burdens for American families, urging bipartisan support to enact swift relief.
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