Real estate groups speak out against Biden’s rent control …

The National Association of Realtors on Tuesday criticized government proposals to strip tax breaks from corporate landlords who raise their rents by more than 5 percent annually. The NAR said in a statement that rent caps discourage developers from building new rental properties and reduce the supply of low- to mid-priced housing.

What exactly is Biden proposing? President Joe Biden on Tuesday called on Congress to pass legislation that would force commercial landlords to cap rent increases on existing apartments over the next two years. The plan would apply to landlords with more than 50 units in their portfolio, which the White House says amounts to more than 20 million rental units across the country. Biden’s plan is unlikely to gain the support needed in Congress to pass.

The proposal also calls for rezoning public land in Nevada to build up to 15,000 affordable housing units and calls on state and local governments to evaluate whether the land they own might be suitable for new development. As part of Biden’s announcement, the U.S. Department of Housing and Urban Development said Tuesday that the administration plans to invest $325 million in Choice Neighborhoods grants. The funds will be used to revitalize blighted neighborhoods and build affordable housing.

How have other trade groups reacted? The National Multifamily Housing Council on Monday opposed the Biden administration’s rent cap proposal, saying the bill will not create the new housing needed to address the housing shortage. Rent control has been attempted for decades and has been a resounding failure, NMHC President Sharon Wilson Géno said in the press release. She added that it is time for real solutions, not electioneering.

Bob Broeksmit, CEO of the Mortgage Bankers Association, called the proposal politically motivated and said financial incentives for developers and landlords would encourage housing construction. The National Apartment Association also criticized the proposal.

Meanwhile, Nevada REALTORS President Brandon Roberts said Biden’s plan to open up federal land for development will not help residents who are not eligible for HUD housing but still struggle to afford it.

Is alternative legislation being discussed? The National Association of Realtors said Tuesday it supports the Yes In My Backyard and Neighborhood Homes Investment Act as legislative initiatives to improve housing affordability and accessibility.

What is the Yes In My Backyard bill? The bill requires certain recipients of Community Development Block Grants to submit information to the Department of Housing and Urban Development regarding the implementation of certain land use policies, such as policies regarding the expansion of high-density single-family and multi-family housing.

What is the Neighborhood Homes Investment Act? The bill allows a business-related tax credit for certain development costs for the acquisition, rehabilitation, or redevelopment of qualified real property.

What is the current situation regarding housing supply? Housing inflation rose in June at the slowest pace in three years, according to the latest report from the Bureau of Labor Statistics. However, housing prices have remained high in recent years, and 22.4 million renter households spent more than 30 percent of their income on rent and utilities in 2022, according to Harvard University’s Joint Center for Housing Studies.

Freddie Mac, the government mortgage bank, estimated in May that an additional 1.5 million vacant homes would need to be created for sale or rent in the United States to meet current demand.

Dig deeper: Listen to Kelsey Reed and Jonathan Boes’ report on At the same time about the housing crisis and the search for satisfaction.