Rent Caps are Not the Solution for Low Housing Inventory
On July 22, 2024, NAR (National Association of REALTORS®) and a coalition of housing industry partners, including the National Multifamily Housing Council and the National Association of Home Builders, sent a letter to the White House and Congress opposing the President’s rent cap proposal. This proposal, requiring Congressional action, would remove the accelerated depreciation tax provision from housing providers with 50+ units who increase rents by more than 5% annually. It would apply to existing properties for two years.
The coalition argues that rent caps won’t solve affordable housing shortages but will jeopardize rental communities’ financial stability, reduce housing quality, limit choices, and deter new development. Economists agree that rent control worsens affordable housing challenges. Instead, the coalition urges the administration to support federal programs that encourage investment and to push to remove state and local development barriers.
While the proposal is unlikely to pass in the 118th Congress, NAR will continue advocating against it. NAR provides resources to local associations to oppose rent control and supports the Housing Solutions Coalition in finding real solutions to housing affordability issues.