President Biden will propose a nationwide cap on rent hikes of 5% per year targeted at landlords who own more than 50 rental units, affecting roughly half of all rental units in the U.S., in efforts to control rising rents without discouraging new housing construction.
Affordable housing advocates support measures leading to new housing construction. Studies caution against rent control as it may reduce rental supply by prompting landlords to convert to condominiums.
Biden also plans for a tax credit for first-time homebuyers and homeowners selling starter homes, accompanying the proposal to cap rent hikes at 5% per year, as part of his broader housing policy.
Alongside the proposed measure, landlords with over 50 rental units will lose tax breaks if they raise rents by more than 5%, including deductions like depreciation, mortgage interest, and property taxes, highlighting a shift in federal housing policies.
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