President Joe Biden is taking steps to curb rent increases by penalizing landlords who raise rents beyond 5% each year, but he will need Congressional support to implement this plan. The administration is set to announce the initiative in Nevada on Tuesday, alongside various housing-related policies, including increased funding for housing development in Nevada and other areas, as well as utilizing public federal lands for affordable housing near Las Vegas.
The proposed rent control measures would apply to larger landlords with over 50 units, restricting rent hikes to 5% or less. Those who exceed this limit would risk losing access to valuable tax breaks. The administration estimates that this policy could affect approximately 20 million rental units nationwide and would remain in effect for two years, contingent upon Congressional approval. This initiative aims to assist renters while also encouraging developers to increase housing stock to meet growing demand and improve affordability.
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This announcement coincides with the Republican National Convention in Milwaukee, where Donald Trump is expected to be officially nominated as the party’s candidate. Housing affordability has emerged as a critical issue for voters, particularly as housing and goods prices have risen over the past four years.
However, the likelihood of bipartisan support for Biden’s rent control plan remains uncertain, complicating the path to a legislative victory.
In a statement, Biden expressed his commitment to making housing more affordable after years of insufficient homebuilding. “Today, I’m sending a clear message to corporate landlords: if you raise rents more than 5%, you should lose valuable tax breaks,” he said. He also emphasized the administration’s efforts to cut red tape and repurpose public land for affordable housing projects, including the development of thousands of new homes in Nevada.
Additional Initiatives Announced
The Biden administration also introduced several other measures aimed at lowering housing costs in the absence of Congressional action. The Department of Housing and Urban Development (HUD) has announced $325 million in grants for affordable housing and neighborhood revitalization, which will create over 6,500 new housing units and establish childcare centers and parks in communities nationwide. Notably, $50 million will be allocated to the Southern Nevada Regional Housing Authority and the city of Las Vegas for restoring existing units and constructing new ones.
For renters in multifamily properties financed by federal Fannie Mae or Freddie Mac loans, the administration is implementing protections such as a 30-day notice before rent increases and a five-day grace period for late payments.
In Nevada, the Bureau of Land Management plans to sell 20 acres of public land to Clark County below market value, facilitating the construction of about 150 affordable homes. Another land sale to the city of Henderson is expected to yield around 300 affordable housing units.
Several federal agencies, including the US Forest Service and US Postal Service, have been directed to explore the use of their land or properties for affordable housing projects.
Neera Tanden, Biden’s domestic policy adviser, emphasized the importance of this initiative, stating, “The federal government is the biggest landowner in the country, and some of its land is currently underutilized or entirely unused. President Biden is asking federal agencies to identify opportunities to repurpose surplus property to build more affordable housing.”
