Since taking office Biden has created an environment where the economy has tanked, prices are high, and the house market went wild.
Additionally, Biden has struggled since his poor debate performance, and if polls are any indicator, former President Trump seems to have the momentum.
Recently, Biden bragged that his campaign would promote a new proposal to help Americans cope with skyrocketing rent.
Will he enact policies we saw in 2018 to jump-start the economy?
No, he imposing communist style regulations.
President Joe Biden is set to propose a 5% cap on annual rent increases for tenants of major landlords, in an effort to address the escalating cost of living. This proposal, scheduled for announcement during his upcoming visit to Nevada, is still in the discussion stage.
However, this plan can only become law if the Democrats firmly control Congress. There’s more to consider as well. Many policymakers believe that the best way to control housing costs is to increase construction and change land use regulations.
Think about the contrast: Biden wants to impose regulations; Trump wants to remove taxes on tips for service workers.
During his recent NATO conference, Biden gave a hint of this forthcoming announcement. He stated, “It’s time things get back in order a little bit. If I’m reelected, we’re going to make sure that rents are kept at a 5% increase.”
Here’s the caveat: this 5% cap would only apply to landlords who own more than 50 units, so it does not impact every landlord.
Looking at the figures, as of June, the median national rent was $1,411 a month, a considerable increase from about $1,150 when Biden took office in early 2021.
Political difficulties for Biden have arisen due to inflation (inflation he said was “transitory), with housing costs playing a substantial role in maintaining the consumer price index at a yearly rate of 3%.
Industry representatives were quick to criticize this proposal, arguing it won’t address the overall shortage of units and might even lead to a reduction in habitable spaces. Sharon Wilson Géno, CEO of the National Multifamily Housing Council, was vocal in her critique, stating, “This is not going to create a single unit of housing. This is really a campaign-driven piece of rhetoric.”
