US President Joe Biden has announced plans to cap rent hikes across the United States.
According to the proposal, landlords who own more than 50 rental units and attempt to increase rent by more than 5 percent will be ineligible for tax credits.
This measure is expected to impact approximately 20 million rental units in the US.
“Rent is too high and buying a home is out of reach for too many working families and young Americans, after decades of failure to build enough homes. I’m determined to turn that around,” Biden stated.
The plan, which requires congressional approval, exempts new construction and buildings undergoing substantial renovations.
“The policy is a bridge to rents stabilizing as President Biden’s plan to build more takes hold.
“The President believes that this combination of anti-gouging policies and historic levels of support to build more affordable housing effectively balances the needs of tenants without limiting incentives for more supply,” the White House said in a statement.