July 16, 2024 – National Association of Realtors® President Kevin Sears issued the following statement in response to the Biden Administration’s rent control plan, which would limit rent increases to 5% or less for larger landlords with over 50 units. Landlords who raise rents above this threshold would lose access to tax breaks. The administration estimates this plan would affect 20 million units nationwide and would be in place for two years, pending Congressional approval. The plan is presented as a measure to assist renters while developers work to increase the housing supply and improve affordability.
In response, Kevin Sears said, “NAR opposes misguided attempts to cap or control rental rates. Price controls may seem appealing, but they have backfired on local governments and harmed the people we need to help the most. Developers are reluctant to build in areas where the government imposes rent controls on new buildings, and these policies actually decrease the supply of low- to mid-range housing units. We can protect the most vulnerable by supporting targeted assistance to renters and housing providers when there is a gap between rising wages and rising rent. But the long-term solution remains increasing supply. We need more than 328,000 new apartment units each year just to keep up with demand — that’s 4.3 million units by 2035.
“Rent control is a rare instance where the research is fairly conclusive: It doesn’t work. These measures fail to improve most renters’ financial situation and shift the burden of economic difficulties, inflation, and other costs onto the housing provider with no counterbalance. NAR has advocated for federal legislation and policies such as YIMBY and Neighborhood Homes Investment Act to help eliminate discriminatory land use policies and remove barriers that weaken housing production in the United States. The only way to keep cities affordable for working-class families is to ensure that the supply of housing keeps pace with the growing demand.”
Read NAR’s full advocacy efforts around rent control.
