This is Eve. The fact that Biden has finally unveiled high-profile proposals targeting young people and low-income workers that certainly won’t pass this term is further evidence of the cynicism and desperation of his administration. I’m not alone in this view.
If Biden had supported reducing medical debt, capping rent increases and expanding Social Security months or years ago, Trump probably wouldn’t have had a lead among 18-29 year old voters. https://t.co/7Ph1Vi1sds
— Sam Hazelby (@samhaselby) July 13, 2024
On top of that, there is considerable debate about whether rent control works. The conventional view is clearly negative, but the research is not on this particular implementation of banning the use of accelerated depreciation for landlords with 50 or more units. So it’s not a simple blanket restriction. Second, it’s not clear how many landlords are starting their depreciation schedules early to minimize the losses of accelerated depreciation. Third, rent increases in many markets have increased substantially and far outpaced rising costs. Our own Conor Gallagher, along with many others, has written about how rent control works. The big landowners conspired to raise prices.:
RealPage, a private equity-owned company that develops software programs for property management, has been the subject of lawsuits and investigations by multiple state attorneys general, a national class action lawsuit, a Department of Justice criminal investigation and, most recently, a possible FBI investigation in Atlanta, has finally responded to allegations that it orchestrated a nationwide rent-fixing cartel that caused rent prices to skyrocket.
Texas-based RealPage is accused of acting as an information-sharing middleman for the big real estate rental giants. Lawsuits against the company and major property management companies (1) allege that the big property management companies agreed to pricing through RealPage’s software, which also allowed the two companies to share data on vacancy rates and prices in many of the most expensive markets in the United States.
Many rental markets dominated by large landlords have seen skyrocketing rental prices in recent years (even before the pandemic) and an increase in evictions and homelessness. The lawsuits against RealPage and rental management companies allege that the company’s software covers at least 16 million properties across the U.S., with private equity-owned property management companies being the most enthusiastic adopters of RealPage technology. A separate lawsuit filed last year alleged that Yardi Systems and property management companies (2) conspired to use the company’s pricing software to scam at least another 8 million properties…
Once again, the lawsuit against RealPage and statements from the company’s founders indicate that RealPage contributed to the supply shortage by advising real estate agents to leave properties vacant, thus artificially creating a shortage of rental properties. This anti-competitive behavior is possible because property managers know that their “competitors” are also using RealPage’s system and will not undercut them.
The cap thus bears no comparison whatsoever with the rent control systems implemented primarily during World War II and which continue in reduced form in some cities to this day. There was no permanent, widespread, collusive system that drove prices up far beyond levels justified by demand and supply. It was a legal intervention to compensate for widespread abuse.
It is therefore unclear whether caps will curb new development after a period of profiteering, and it may take several years (or more) of curbs to restore profits to previous, normal levels for large landowners.
But this argument is moot, as the bill is certain to pass Congress. This is not just virtue signaling, it’s also a case of “too little, too late.”
By Jessica Corbett. A common dream
Former US President Donald Trump wins the Republican nomination Announced Democratic President Joe Biden was poised to unveil a proposal as his running mate on Monday to cap annual rent increases for tenants of large landlords at 5%.
Biden for a short time preview The proposal made at a press conference last week was The Washington Postreport The company made the comment, citing three people familiar with the matter, about an announcement expected on Monday. Associated Press Separately Confirmedplan.
Biden is scheduled to formally unveil the proposal on Tuesday in Nevada, which has “one of the fastest growing home prices in the nation.” post “Democrats are increasingly concerned that Trump could win the state in November,” he said.
The president, who is seeking reelection, is reportedly proposing to strip away tax breaks for landlords who raise rents by more than 5% a year. The plan would only apply to existing homes owned by landlords with 50 or more units and would require Congressional approval, meaning it is unlikely to be implemented unless Biden wins in November and Democrats secure majorities in both houses of Congress.
The newspaper detailed the incident as follows:
The Biden administration is also pushing a number of policies to boost housing construction by giving incentives to local governments to change zoning codes and offering new federal financial incentives to builders that could bring 2 million new homes to the market, on top of the 1.6 million already planned.
“This measure wouldn’t make much sense in isolation, but it needs to be considered in the context of measures that are being proposed to expand supply,” said Jim Parrott, an adjunct fellow at the Urban Institute and co-owner of Parrott Ryan Advisors. “The question is, even if all these new units are built, what do you do about the rent increases in the meantime? It makes a lot of sense to devise a relatively targeted bridge to help renters while the new supply is coming in.”
While housing industry representatives criticized the proposal, Diane Yentel, president and CEO of the National Low Income Housing Coalition, said: Associated Press If this law had been enacted in recent years, it might have helped renters.
“The recent, unprecedented increase in homelessness in communities across the country is the result of equally unprecedented and unjust rent increases that were implemented several years ago,” she said. “If such protections against rent gouging had been in place then, many families would have been able to maintain stable housing rather than becoming homeless.”
Other rent control advocates and progressive officials also welcomed the plan, including Working Families Party Councilwoman Kendra Brooks, who was first elected to Philadelphia City Council.declare “This is exactly the kind of leadership working families need!”
JacobinsBranko Marchetic Said “That’s huge,” he said, especially considering that “housing costs are the fastest-rising cost-of-living concern (and also the most important issue for people under 30).”
Several activists and groups praised housing advocates for pushing for rent control at the national level.
“It’s amazing how quickly the debate over rent caps has changed.” I got it. “This change came about through tenant organizing. It’s a proposal to Congress that will face stiff headwinds, but the president just called for rent capping — even if only temporarily,” said Shams Lawlor, executive director of the National Housing Law Project.
Debt Group Said“We say it over and over again: rent is too high, and rent control is the real solution.”
“Rent caps will not become a national policy proposal unless tenants unions across the country organize to make it happen,” the group added. “We must remember that rent control works on our journey to a landlord-free world. The 99%’s desire for a roof over their heads should not be in the interest of the 1%.”
