A broad coalition of housing providers and lenders released a letter to President Biden opposing the recent proposal to cap rents nationwide, according to a release from the National Multifamily Housing Council (NMHC).
“We understand the appeal of what appears to be a quick fix to stabilize rents, but arbitrary federal rent caps are not the answer. Rent regulations jeopardize the financial solvency of rental communities, result in lower quality housing options for renters, and severely limit their housing choices,” the letter says.
Oppose Rent Cap
“Rent control policies have proven time and again to increase rents, reduce the capital needed to boost the supply of housing, and ultimately hurt renters today and in the future.
“Imposing federal rent caps on top of what is already an overly complicated set of regulations at the state and local levels will disincentivize housing investors, thereby further exacerbating the supply shortage, and reducing housing opportunities for our nation’s renters. We urge the White House to reject rent control and instead increase subsidies for those in need and work with housing providers on proven solutions – such as those outlined in the administration’s Housing Supply Action Plan – to expand the supply of needed affordable housing.
“Rent control does not build a single home, and it ignores the real reasons for increases in housing costs, including rapidly rising insurance costs, state and local taxes, and other economic factors. Further, it disincentivizes needed housing investments, particularly in communities that already have few affordable options.
“Instead of rent control, we urge the administration to focus on leveraging federal resources to expand supply and build the housing America needs,” the coalition says in the release.
The letter concludes, “As such, we respectfully encourage your administration to refrain from implementing policies like rent control and instead focus on leveraging federal resources to build the housing America needs.”